Our commercial property solicitors have been receiving questions from landlords and tenants about how to deal with these unprecedented circumstances and prepare for adverse outcomes. The situation is rapidly changing and we have used the government guidance to answer some of the more frequent questions.

1. The Impact of the
Coronavirus (COVID-19)
on Commercial Property

2. Our commercial property solicitors have
been receiving questions from landlords
and tenants about how to deal with these
unprecedented circumstances and prepare
for adverse outcomes. The situation is
rapidly changing and we have used the
government guidance to answer some of
the more frequent questions:

3. What steps should a
landlord or tenant take in
the event of lockdown?

4. 23rd March 2020, a general lockdown is
government policy for non-essential
businesses, however this may change in the
near future. It is advisable that the landlords
and tenants take legal advice regarding the
impact and process of closing from our
commercial property department, particularly
the consequences for the breach of the terms
of the lease for example opening hours, and
right of access.

5. What should landlords
and tenants do if the
property has been
affected by COVID-19?

6. The landlords and tenants will need to work
together to agree steps to be taken regarding
the cleaning of the property.
Our legal professionals will be able to review
the lease and advise on the specific obligations
of landlords and tenants under the lease.

7. Can an existing lease be
terminated by either
party due to the impact
of COVID-19?

8. The landlords and tenants will need to refer to
the express terms of the lease to check if the
present circumstances are/ would to be covered.
It is advisable that the landlords and tenants
should seek professional advice on force majeure,
contractual performance and frustration. Our
commercial property team can assist by looking
at these provisions and advising on specific
requirements in your lease.

9. Will a tenant stop paying
the rent due to COVID-19?

10. Based on the government guidance on 23rd
March the commercial tenants who cannot pay
rent because of COVID-19 will be protected from
eviction. It is advisable that the landlords and
tenants start communicating with each other
about the cash flow and the rental payments as
soon as possible to find an amicable solution. The
government has advised that no business can be
forced out of commercial property until at least
30 June 2020, even if they miss the rent payment.

11. What should the landlord
and the tenant consider
when granting or taking a
new lease in the current
circumstances?

12. The landlord and the tenant must take the
legal advice on COVID-19 to make sure that
both parties understand the importance of the
contractual protection and implications of the
obligations under the lease.

13. Our Commercial Property team at Enoch
Evans LLP will be happy to help tenants and
landlords with any enquiries regarding leases
or any other commercial property query.
To discuss any of the issues raised,
please
contact us on 01922 720 333