Landlords and commercial tenants are facing significant financial pressures due to the unforeseen global pandemic we have had to contend with this year. We have seen many clients taking a collaborative approach to ensure the survival of their business.
The Government introduced legislation to support businesses by allowing tenants to stay in their commercial property, even if rent cannot be paid. Under the current measures, a commercial tenancy cannot be ended, due to the non-payment of rent, for a period of 14 weeks. Prior to the introduction of the legislation, a lease could usually be ended if rent was not paid by the tenant for a period of 14 days. The accrued rent does ultimately have to be paid but this measure gives tenants some breathing space, should their business be forced to slow down or stop. This is a big step as it is not in the landlord or commercial tenant’s interest for the property to lie empty.
At Bannerman Burke we can assist landlords or commercial tenants in drawing up variations or extensions to existing leases, to document any alternative business arrangements. It is advisable to have any changes or new agreements formally drawn up to provide landlords and tenants with security in these uncertain times.
