As widely reported, temporary emergency legislation has been put in place (currently applying to the end of June 2020, although this may be subject to change) preventing landlords of business premises from recovering possession of such premises for non-payment of rent. Whilst these measures offer a degree of immediate protection for business tenants, it is important to understand that they do not remove the obligation for business tenants to pay.

Engaging landlords at an early stage to discuss and agree potential solutions is recommended. These may be:

  • A period of no rent or reduced rent
  • Changes to rent payment frequency to temporarily ease cash flow
  • Future repayment plans
  • A variation of the terms of the business lease (e.g. the grant of a rent-free or reduced-rent period in return for giving up any future right the tenant may have to an early termination of the lease).

The terms of the individual lease will need to be checked in each case and it is strongly recommended that any changes agreed are formally documented.

If you have any questions relating to your business occupation, please contact Sam Benfield using the details below.

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This article is for general information purposes only and does not constitute legal or professional advice. It should not be used as a substitute for legal advice relating to your particular circumstances. Please note that the law may have changed since the date of this article.