Government measures in key jurisdictions 4th edition - Flipbook - Page 151
UnitedKingdom
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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
September 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 bepostponed. Notice periods for
terminating most residential tenancies were extended to three months, for the period 26 March
to 30 September. On 21 August the government announced its intention to extend this to 6
months until at least the end of March 2021, although no legislation has yet been passed to
effect this.
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All current property possession claims are suspended until 20 September 2020. This
suspension affects all tenancies and licences of dwellings, as well as commercial property.
Again, this period can be extended. Once this is lifted, claims initiated during the
suspension will need to be ‘re-activated’ by notice.
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Many business tenants are now able to open their doors to the public, although
some remain closed. Aside from the legislation above and absent any other intervention, lea
ses 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.
Have any changes
been made to
the laws around
property, rent and
enforcement?
151
The Corporate Insolvency and Governance Act (discussed in the Insolvency section above) came
into force at the end of June 2020. It introduced a restriction on triggering ‘termination for
insolvency’-type provisions in contracts as such terminations may jeopardise attempts to
rescue companies at risk of insolvency due to the current crisis. The restrictions will only apply
to suppliers who have contractual rights to terminate against their customers. It does not
apply to termination rights after an insolvency procedure has commenced. There is also a
temporary exemption for small suppliers.
Government measures in key jurisdictions