The suspension of eviction under commercial leases

Authored by ARAG

We’ve written about the headline support that the government has put in place to help businesses that are being affected by the coronavirus pandemic, but there are a few other measures that are worth highlighting, such as the suspension of eviction under commercial leases.

Included in the Coronavirus Act - and in the Coronavirus (Scotland) Act - is protection from eviction for commercial tenants that fail to pay their rent. Tenants will still be liable for any arrears, and the legislation doesn’t cover service charges or other payments that may be due under a lease.

While eviction may be off the table until at least June (September in Scotland), landlords can still serve a statutory demand or a winding up petition against a limited company.

England, Northern Ireland and Wales

Landlords cannot claim forfeiture for non-payment of rent or exercise their right of re-entry until at least the end of June 2020, even if they are trying to enforce an existing court claim.

Scotland

Landlords may not exercise their right to claim irritancy for non-payment of rent until the end of September 2020. If a landlord serves notice, it must give notice of at least 14 weeks rather than 14 days.

These dates may be reviewed and potentially extended.

Any business struggling to pay rent should discuss options with their landlord first, and ensure that any agreement they may come to is put in writing.