Need To Know: Dealing With 2020's September Quarter Day

• Published date: 28 September 2020
• Subject Matter: Corporate/Commercial Law, Real Estate and Construction, Coronavirus (COVID-19), Contracts and Commercial Law, Real Estate, Landlord & Tenant - Leases, Government Measures
• Law Firm: Charles Russell Speechlys LLP
• Author: Ms Emma Humphreys

The past six months have seen significant changes for almost all businesses in the UK as a result of Covid-19. Following the closure of most high street units and many offices between March-June, those businesses which have now reopened are trading under very different arrangements and face restricted operations for some time to come.

In line with the swift action taken by government in March and April to alter certain rules which usually apply to the commercial landlord and tenant relationships, further changes have recently been announced which will continue to affect the remedies available to landlords until the end of 2020. These include:

• Removing forfeiture as a remedy for arrears
• Other "breathing space" measures such as delaying the availability of Commercial Rent Arrears Recovery ("CRAR")

There is currently a ban on winding-up petitions for coronavirus-related debts in place until the end of September but we await further announcements as to any extension of that arrangement.

The government code of practice remains in place to communicate "best practice" in discussions between landlords and tenants concerning arrears.

We appreciate the importance of landlords and tenants having a clear understanding of their legal position during this difficult time, particularly with the September Quarter Day looming. With that in mind, we have brought together our most recent guidance on the issues here and some points of interest:

Forfeiture moratorium: Click here for all you need to know about the further stay on business tenancy terminations.

Commercial Rent Arrears Recovery (CRAR): As the amended CRAR Regulations come into effect, click here for the detail on those restrictions and the latest on the proposed legislation to confirm the additional tests for winding-up petitions.

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