The Government has extended the lease forfeiture moratorium from 30th June 2020 to 30th September 2020. The extension means that landlords of business tenancies are unable to forfeit a lease for non-payment of rent (including service charge, insurance rent and other sums due under the lease) until 30th September 2020.

The legislation also protects a landlord from inadvertently “waiving” its right to forfeit by not taking any action for non-payment and/ or discussing payment options or concessions with tenants during this period.

This does not give tenants a right to reduced rent but simply provides protection against a lease being terminated during this period. A landlord will be able to forfeit the lease after 30th September 2020 if sums remain outstanding, although this period may be extended again. There are still alternative enforcement methods and remedies available during the moratorium.

For further information or guidance on any Landlord and Tenant matter, contact BHW’s Commercial Property department on 0116 289 7000.

Further reading: Lease Forfeiture Moratorium under the Coronavirus Act 2020 

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