As you know, the Coronavirus Act 2020 (“Act”) came into force on 25th March 2020 and sets out proposed emergency legislative measures to address the Coronavirus disease outbreak.
Section 82 of the Act deals specifically with business tenancies
Section 82 effectively creates a “forfeiture moratorium” over a business tenancy and therefore prevents any landlord from exercising its forfeiture rights (i.e. rights to terminate the lease) between the period from 26th March 2020 to and including 30th June 2020 (also known as the “relevant period”)
Please note, however, that the Act does preserve the right for a landlord to sue for unpaid rents and/or sue for a tenant’s insolvency. Of course, whether a landlord decides to pursue these courses of action given these unprecedented times is another thing entirely.
One further point to note is that this forfeiture moratorium only affects tenancies and therefore does not cover any informal occupational arrangements such as licences to occupy.
Whether you are a landlord or a tenant, you will be equally concerned about the impact on your business during these uncertain times. Here at Slater Heelis, our property team can assist you by reviewing your lease and helping you explore the practical options available to help the survival of your business.
Should you have any queries whatsoever, please contact Hannah Al-Shaghana on 0161 672 1426.