And here we go AGAIN…Forfeiture moratorium extended until March 2022
On 16th June 2021, yet another extension to the moratorium on forfeiture for rent arrears (which prevents Landlords from forfeiting a commercial lease on the grounds of Rent arrears) was announced. The moratorium, which was due to end at the end of June 2021, will now expire on 25 March 2022
Regular readers will recall that the last extension was said to be the final extension. But then so was the extension before that. So, who knows what will happen in March 2022. All we do know is that Landlords will not be able to take steps to forfeit a commercial lease on the basis of rent arrears until at least 26 March 2022.
It is, I suggest, no coincidence that, once again, the moratorium is due to expire the day after after one of the traditional Rent Quarter Days (being 25 December, 25 March, 24 June and 29 September). When the moratorium expires, the general consensus is that Landlords will not be able to forfeit based on arrears that have accrued during the moratorium, rather they will have to wait until the non-payment of the next rent instalment that falls due after the moratorium expires before they can take forfeiture action based on rent arrears
The Government has announced that an arbitration process will be introduced to determine disputes between Landlords and Tenants regarding rent rent arrears. What that will entail is anyone's guess, as no details have yet been provided, but as and when we know more, we'll produce another insomnia curing article to keep you up to date.
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This article is for general guidance only. It provides useful information in a concise form. Action should not be taken without obtaining specific legal advice.