Further extension on the moratorium against forfeiture of commercial leases

15 December 2020
  • Philip Angell Director of Property Management Cooke & Arkwright

Share this

The Government has announced a further extension on the moratorium against forfeiture of commercial leases as a result of non-payment of rent due to Covid-19. This has now been extended for the third time until 31st March 2021 and this also prohibits statutory demands and winding-up petitions. The restriction on landlords using Commercial Rent Arrears Recovery (CRAR) has also been extended to 31 March 2021

Philip Angell, Director of Property Management comments, “At the end of this period, commercial tenants would have had this protection for a year and many landlords will feel aggrieved that tenants, albeit a minority, who are able to pay their rent are not doing so. 

“On the positive side for landlords, the Government has stated that this will be the last extension and so they are only kicking the can down the road until 1st April.

“The continued rise in debt by some tenants will have to be addressed at some point and I am not sure that this announcement does either party many favours in the longer term.  The Government is understandably concerned about tenants, particularly in the retail and hospitality sector, but I would suggest that the prospect of landlords forfeiting a large number of leases and taking properties back to re-let them in the current retail market would be fairly unlikely.

“The Government also announced that they are to review “outdated commercial Landlord and Tenant legislation” in the New Year, although there is little detail as yet on what this review will focus on.”

I have worked with Jeremy Symons over the past three years successfully leasing and buying property in support of my business. I continue to be very pleased with his knowledge of the market and expertise. Our relationship over this time has resulted in acquiring 20,000 sq ft at Capital Business Park in Cardiff, leasing 11,000 sq ft at Southpoint, and subsequently leasing an initial 42,000 sq ft at Parc Bedwas, followed by a succession of expansions of a further 11,000 and then 47,000 sq ft, enabling us to centralise all of our operations at Parc Bedwas in a single 100,000 sq ft facility. The acquisitions were completed at the perfect time for tenant purposes and the rent fixed throughout the term at very economical rates. A job well done.

Bob James, Aerfin