SHORTER READ

Real estate disputes

Government extends moratorium preventing the eviction of commercial tenants until end of 2020

The Government has extended its moratorium, preventing the eviction of commercial tenants for non-payment of rent, until the end of 2020.

SHARE

Authors

The Government has extended its moratorium, preventing the eviction of commercial tenants for non-payment of rent, until the end of 2020. This is important news for commercial landlords to be aware of, and good news for tenants.

The moratorium, which was due to be lifted on 30 September 2020, will be extended until 31 December 2020. In addition, the government will also extend the restriction on landlords using Commercial Rents Arrears Recovery to enforce unpaid rent on commercial leases.

The extension will, no doubt, be a source of relief to struggling tenants, since it is designed to help struggling businesses recover and continue trading in the run up to Christmas.

Although the news could frustrate some commercial landlords, many of which may not have received rent for several months, they can still take comfort in the knowledge that the restriction on presenting a winding-up petition against tenants is due to be lifted on 30 September 2020. With that said, our prediction is that it too will be extended until the end of year. In the meantime, Landlords and tenants will need to continue to work proactively together to find ways to restructure and, hopefully, meet both parties’ financial needs.

More information is available on the Government website: https://www.gov.uk/government/news/government-extends-support-to-stop-business-evictions-this-year#history

Authors

MoreofRebecca'sInsights

You are contacting

Rebecca Mitchell

Associate

rebecca.mitchell@collyerbristow.com