When will the Moratorium be Lifted to enable Commercial Landlords to Effectively Manage their Properties?
The Coronavirus Act 2020 brought in a raft of emergency measures to protect the economy.
One of the measures that has been to the significant prejudice of landlords up and down the country is the moratorium precluding landlords from forfeiting commercial Leases and evicting tenants for non‑payment of rent.
This was originally announced on 23 March 2020 and was put in place until 30 June 2020. Here we are, however, in 2021 and the moratorium is still in place. The restrictions have been extended currently until 31 March 2021 but it also appears that this protection for tenants will be further extended. Whether it will be a blanket extension or not, we are waiting to find out.
What is clear is that a number of retailers up and down the country have abused this protection. There are a significant number of retailers who have continued trading and traded well who have refused to make any payment of rent, service charge or insurance.
This inevitably has put pressure on numerous landlords.
Further, what we are now seeing is that a number of these tenants are making offers to pay but on the basis that there are incentives to them by way of rent-free periods.
Our view at Hanover Law is that this is an abuse of the legislation and the intent behind it.
We have now, for numerous retail and business space landlords, engaged with tenants making demands through the processes that are available and have secured significant payments from a number of the more obstinate high street retailers when it comes to payment of rent.
We will post updates as and when we are aware of the changes that will be implemented to the current deadline of 31 March 2021 but if in the interim if you would like to discuss the options that are open to you in relation to tenant default then please speak to David McCann at:
