Coronavirus - Government measures in key jurisdictions - Flipbook - Page 84
United Kingdom
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Property
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Under emergency legislation:
– Landlords of business tenancies are prohibited from re-entering premises
(forfeiture) for non-payment of any sums due under the lease, from 26 March to
30 June inclusive. This period can be extended by further legislation. Landlords
will retain their right to exercise re-entry for these sums at a later date, unless they
expressly waive it in writing. Existing court orders for possession of premises may be
postponed.
Have any changes
been made to
the laws around
property, rent and
enforcement?
– Notice periods for terminating most residential tenancies are extended to three
months, for the period 26 March to 30 September. The notice period can be
extended to a maximum of 6 months by further legislation.
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All current housing possession claims are suspended from 27 March for 90 days. This
suspension affects all tenancies and licences of dwellings. Again, this period can be
extended.
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Many business tenants are no longer able to open their doors to the public. However,
aside from the legislation above and absent any other intervention, leases will
continue and the obligations on tenants will carry on as before.
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The most practical route for the majority of tenants will be some form of temporary
adjustment to the rent payable under the lease, from a switch from quarterly to
monthly rent payments, to a rental holiday or deferment or even a full rent-free period.
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Landlords in the UK are being encouraged to approach negotiations with a degree of
flexibility and it may become increasingly difficult for landlords to resist some nod to
the gravity of the situation faced by the whole business community.
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A number of practical tips for both landlords and tenants is here: COVID-19 Impact
on Landlords and Tenants
Litigation
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Are the courts
operating?
In the UK, with the help of some technological innovation such as the use of video
conferencing tools, the courts are operating largely ‘business as usual’.
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On 19 March 2020, the Business and Property Courts of England and Wales issued
a protocol regarding remote hearings, providing that remote hearings should
take place wherever possible. Where a remote hearing is not possible, then the
Court has only two solutions: (1) proceed with the matter in court; or (2) adjourn
because a remote hearing is not possible and the length of the hearing combined
with the number of parties or overseas parties, representatives and/or witnesses
make it undesirable to go ahead at the current time. The protocol emphasises the
need for the court and parties to be proactive in relation to forthcoming hearings.
Allied to this, the Government is also introducing a bill to dramatically increase
the availability of video and telephone conferencing as an alternative to physical
hearings.
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Similar methods are being employed to deal with arbitration hearings.
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COVID-19 and Hearings in International Arbitration
Government measures in key jurisdictions
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