Commercial Property FAQs
As the situation develops with COVID-19 and the advice of the Government changes daily, some auction houses have adapted by moving their auctions online to allow them to proceed as normal.
We would recommend that you instruct your legal advisor to review the legal pack as soon as possible to ensure you are happy to proceed. When your bid on the lot is accepted, it will be the same as when the hammer falls at a standard auction, you have committed to purchasing the lot.
Always make sure you have read and understood the fine print each time as these will have been updated to take into account the change in auction format and you will be expected to complete in accordance with these terms. You will also need to ensure the funds you are using will be available on completion as there may be time delays when accessing funds.
If you would like to discuss this further or require our assistance, please contact one of our team who would be happy to assist.
In these uncertain times, some commercial landlords are being approached by their tenants asking for a rent suspension or reduction up to 30 June 2020.
This may become more common as the government guidelines evolve and further prevent tenants from operating their business from their premises.
Some landlords may, after weighing up their options and the consequences of their tenants ceasing to trade, respond by agreeing to temporarily reduce or forgive rent without wanting to recover it later and others may agree to defer it. When receiving the request from a tenant, landlords who agree to defer rent should let their tenant know that their rent will still be due for this period and following the suspension they will be required to pay the rent that was due during the suspension period. It is important that any rent reduction or deferral arrangement is properly documented.
The Coronavirus Act 2020 states the following:
“With regard to non-payment of rent, the government has announced that landlords in England and Wales will be prevented from terminating certain business tenancies by forfeiture for non-payment of rent from 25 March 2020 until 30 June 2020. The Coronavirus Act 2020 (CA 2020) containing the restrictions came into force on 25 March 2020. There are powers to extend this date if necessary.”
This means your tenant is only protected from forfeiture for non-payment of rent during the suspension period.
The situation is evolving every few days and with that the relevant law and guidance. If you need any assistance with this please contact one of our team who will be happy to assist