We have already seen landlords and tenants working together in positive and collaborative ways to keep business fluid and minimise the impact of the current crisis on either party. We all await further news of potential legislative intervention to assist the property sector and will be ready to offer guidance with any new/temporary regime. The emergency Coronavirus Bill currently going through Parliament, will mean no business will be evicted from their premises if they miss a payment in the next three months.
Specifically, we can offer immediate practical and legal support in the following ways:
- Review the lease and rent deposit deed to identify and explain pertinent clauses (rent cesser and insurance / turn-over provisions/keep-open covenants/ force majeure clauses/ forfeiture /break options etc).
- Renegotiate and document commercially agreeable payment terms (rent / service charge – timing and concessions) for the duration of the crisis period.
- Obtain consent from any lender to ensure the concession agreement is binding.
- Advise on the efficacy of business interruption insurance.
- Advising on whether a business falls within the list of businesses/premises that may remain open and the penalties for breaching the same.
- Advising on ‘change of user’ provisions in the lease, specifically whether a business can lawfully change its business model to remain open e.g. restaurants to delivery and takeaway, hotels for ‘key workers’.
As we act for both landlords and tenants, we are well placed to advise on proposals that are realistic, workable and assist both parties.
Our team has experience in successfully facilitating these agreements during previous downturns. Please contact: Bill Dunmore.