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Ban on Commercial Forfeiture For Rent Arrears and Restrictions on CRAR Extended

Commercial landlords are currently prevented from forfeiting commercial leases as a temporary measure and part of the response to the global coronavirus pandemic. Government have announced that the current moratorium on forfeiture will now be extended to 30 June 2021.

As a result of this extension in accordance with section 82 of the Coronavirus Act 2020 commercial landlords will continue to be unable to forfeit commercial leases and their right of peaceable re-entry for non payment of rent will remain suspended until 30 June 2021 at the earliest.

It has also been announced that the period of qualifying rent arrears for the purpose of Commercial Rent Arrears Recovery (CRAR) is to be extended. The intention is to limit a landlords ability to seize goods to obtain payment of rent where arrears have accrued:-

  • to 457 days arrears between 25 March 2020 to 23 June 2021 (inclusive); and
  • 554 days arrears between 24 June 2020 and 30 June 2021 (inclusive).

Landlords remain entitled to issue County Court or High Court claims seeking money Judgments, including against guarantors where/as applicable. The commercial courts remain open and we are assisting a number of landlords, agents and investors in this way in the meantime.

We will continue to update landlords as the situation develops further.

Posted by:

Richard Chapman

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