NEW MEASURES TO PROTECT UK HIGH STREET FROM AGGRESSIVE RENT COLLECTION AND CLOSURE
On the 23 April the Business Secretary announced high street shops and other companies under strain will be protected from aggressive rent collection and asked to pay what they can during the coronavirus pandemic.
The majority of landlords and tenants are working well together to reach agreements on debt obligations, but some landlords have been putting tenants under undue pressure by using aggressive debt recovery tactics. I personally have also heard of cases of companies struggling with potential rent increases despite the current outbreak.
This new legislation will be in force until 30 June, and can be extended in line with the moratorium on commercial lease forfeiture.
These measures come on top of a substantial package of business support measures, including a moratorium on evictions for commercial tenants for at least a 3-month period, which includes a suspension of forfeiture rights, which prevents all commercial tenants from being removed from their properties until 30 June.
Should you need assistance with negotiations or help and support considering the longer term options please do not hesitate to contact our Licensed Insolvency Practitioner for a FREE consultation on Tel: 07972928153 and email: email@example.com
EXTRA PROTECTION FOR BUSINESSES WITH BAN ON EVICTIONS FOR COMMERCIAL TENANTS WHO MISS RENT PAYMENTS
The Government have announced that Commercial tenants who cannot pay their rent because of coronavirus will be protected from eviction.
Commercial tenants who cannot pay their rent because of coronavirus will be protected from eviction.
As commercial tenants will still be liable for the rent after this period, the government is also actively monitoring the impact on commercial landlords’ cash flow and continues to be in dialogue with them.
Tenants should be mindful, whilst protection is offered in the short term, the rental payments will still be due after the period of protection, and should make what payments they can afford in the meantime.
The change will come into force when the Coronavirus Bill receives Royal Assent. It will last until 30 June, with an option for the government to extend if needed.
If you have commercial premises and looking to manage your cashflow, please do not hesitate to contact us on Tel: 07972928153 or email: firstname.lastname@example.org should you need assistance with forecasting, and knowing more about the options available to you.
Lucinda Matkin - Licensed Insolvency Practitioner & Chartered Accountant