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Clarke & Son Blog​

Moratorium on Commercial Landlord Remedies Ends

commercial property

It has been just over two years since the start of the Moratorium on commercial landlord remedies which effected CRAR (commercial rent arrears recovery) and forfeiture of lease. This has now ended. Many landlords who have tenants in arrears or need to retake possession of their properties will certainly find this to be a relief.

On the 24th of March 2022, the Commercial Rent (Coronavirus) Act came into force. This new legislation means that if rent arrears fall under the criteria for “protected rent arrears” then, the act will still have an impact on both CRAR and forfeiture.

Rent arrears will fall under the “protected rent arrears” criteria if there have been requirements on the tenant to fully or partially close under Coronavirus regulations. To be protected, the arrears must relate to the “relevant period” which is beginning at or after 2pm on 21st March 2020 and ending at or before 11:55pm on 18th July 2021 (in England) or 6am on 7th August 2021 (in Wales).

If arrears fall under the criteria for “protected rent arrears”, then the only option to landlords and tenants would be arbitration using a government approved Arbitrator.

During the period which begins the day the Act was passed and ends either when arbitration has concluded or when the six months arbitration application period has passed, the landlord is prohibited from using these remedies:

  • Making a debt claim in civil proceedings
  • Using the commercial rent arrears recovery power (CRAR) and the protected debt is to be disregarded when calculating the net unpaid rent for CRAR
  • Give notice of enforcement in relation to the protected debt
  • Enforcing a right of re-entry or forfeiture
  • Using a tenant’s deposit

However, arbitration should not be considered as a viable option for the tenant if:

  • A company voluntary arrangement which relates to any protected rent debt that has been approved under section 4 of the Insolvency Act 1986
  • An individual voluntary arrangement which relates to any protected rent debt that has been approved under section 258 of that Act
  • A compromise or arrangement which relates to any protected rent debt that has been sanctioned under section 899 or 901F of the Companies Act 2006

If you have any further queries regarding the Moratorium on Commercial Landlord Remedies or would like to book an appointment with our Commercials Real Estate team, please call 01256 320555 or email us at mail@clarkeandson.co.uk.

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