Real Estate Law Blog - Government to extend forfeiture/CRAR restrictions until the end of 2020

Further to our previous blog on the subject 'Moratorium on Forfeiture of Business Tenancies and Measures to Protect Tenants against Rent Collection', the Government confirmed last night that it will extend the ban on forfeiture of commercial leases for the non-payment of rent to the end of the year (it was due to expire on 30 September). Until 31 December 2020, commercial landlords will be prohibited from forfeiting a lease for non-payment of rent in England and Wales. Forfeiture may be permitted for breaches other than non-payment of rent, depending on the individual lease.The government will also extend the protections in relation to CRAR. The minimum amount of arrears which must be owing for CRAR to be used will be increased as follows:

• Where the Notice of Enforcement is sent on or before 24 December 2020 the minimum amount of days rent owing is 276.
• For Notices issued after 25 December 2020 there must be a minimum of 366 days' rent owing.

These amendments are temporary, but as yet no end date is given for the period after 25 December 2020. Further information can be found at: https://www.gov.uk/government/news/government-extends-support-to-stop-business-evictions-this-year. The Government have also said that they are considering a similar extension in relation to statutory demands / winding up petitions, but no further detail has yet been provided. However, the general guidance remains clear that both landlords and tenants should continue to work together to agree rent payment options if businesses are struggling and the Government published a code of practice to support such discussions back in June which you can read here.If you would like advice on any particular aspect of the above, please contact one of the team to discuss how we can help you.