Please note: The information below is correct as of 23/03/2020. As the Government continues to update its guidance, the situation may change. While we continue to try and provide up to date information, we always advise you speak with a solicitor for specific advice.

Commercial Leases – What to Do if a Tenant Hasn’t Paid Their Rent

At present, the government has not announced any measure to protect commercial tenants from defaulting on their lease due to the Coronavirus pandemic.

With the country being asked to stay indoors and retailers therefore having to close their doors, it is inevitable that some are going to struggle or even be unable to pay their rent until the restrictions are lifted.

As a landlord with a mortgage to pay, that will mean that unless commercial mortgage breaks are also brought in, you will have to find the money to make your mortgage instalments elsewhere.

In the first instance, you should look to your rent deposit. Many landlords insist that their tenants provide a rent deposit of often 3-6 months rent which can then be dipped into if a rent payment is not made.

Alternatively, the lease may have a guarantor in place, meaning that if the tenant has not paid their rent, you can turn to the guarantor to make the payment instead.

On the other hand, you may want to provide a period of rent concession and this will need to be formally noted with the tenant.

Farleys are offering a fixed fee service for lease reviews for landlords and advising you on what steps you can take. Our team can conduct a review of your lease and the drafting of a rent concession letter for £400 plus VAT.

Commercial Leases  – Advice for Tenants

At present, the government has also not announced any measure to protect commercial tenants from defaulting on their lease due to the Coronavirus pandemic.

With the country being asked to stay indoors and retailers therefore having to close their doors, it is inevitable that some are going to struggle or even be unable to pay their rent until the restrictions are lifted.

As a tenant you may be concerned as to how you will comply with the terms of your lease over these coming months, particularly if you have acted in a personal capacity to guarantee a lease.

Farleys are offering tenants a fixed fee service to review your lease and discuss your options with you, and can help with any issues you are facing as a tenant in light of the coronavirus pandemic, in order to protect you and your business.

We can help with

  • Lease review (a review of the lease and the terms) – £400 plus VAT

  • Deed of Assignment and review of a lease for incoming tenant – £500 plus VAT

  • Deed of Assignment and Licence to Assign for an outgoing tenant – £400 plus VAT

During this uncertain time, our commercial property solicitors are on hand to advise you. Please call 0845 287 0939 or contact us by email through the contact form on our website.