Tenants of commercial properties can delay paying their rent for the period between 26th March and 30th June 2020 under section 82(1) of the Coronavirus Act 2020. This period may, but will not necessarily, be extended in due course.
However the provisions amount only to a moratorium and as soon as the moratorium ends, the tenant is liable to the landlord for all of the unpaid rent and if it remains unpaid, the landlord may take steps to forfeit the lease.
In practice, the government intended that landlords and tenants would enter into a meaningful dialogue with a view to agreeing a repayment schedule for the rent rather than simply delaying the payment of the whole amount until 30th June.
Lisa Morrison is an Associate in our Commercial Property Division. Contact Lisa by emailing lisa.morrison@mfgsolicitors.com
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