Many commercial tenants were forced to close non-essential businesses during the nationwide lockdown and, as a result, both commercial tenants and landlords have faced difficulties in meeting daily business expenses.
The effects of the lockdown period on businesses are ongoing and landlords may have the option of changing any lending for the premises to interest only, or even undertake a ‘mortgage holiday’. Such measures should assist them in dealing with any rent reduction during this time.
For those tenants who are not on the recent version of an ADLS lease with the ‘no access in emergency’ clause, and no other right to a rent abatement under the lease agreement, landlords are encouraged to consider their tenant's financial situation.
Reaching an agreement such as a rent payment holiday, reduction in rent or variation of the lease is likely to be in both parties’ interests.
If you are a commercial landlord or tenant contact us for further assistance with commercial lease matters and legally documenting any changes within a lease (where applicable).
It is important to ensure there is clear agreement between both parties to preserve commercial relationships during this unprecedented time.