Government extends Moratorium on Forfeiture of Commercial Tenants in Wales

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The Government has recently announced that the moratorium on forfeiture of commercial leases due to non-payment of rent has been extended to 31 December 2020 in Wales.

The Business Tenancies (Extension of Protection from Forfeiture etc.) (Wales (Coronavirus) (No. 2) Regulations 2020 extend the ‘relevant period’ for the purposes of section 82 of the Coronavirus Act 2020 to 31 December 2020.

Practically, this means that Landlords will be unable to forfeit commercial leases in Wales due to non-payment of rent by the tenant. Landlords are, however, permitted to forfeit leases on the grounds of a breach of other covenants.

As it stands, Landlords remain unable to present a winding up petition which is based on a statutory demand served before 30 September 2020. Whilst Landlords are permitted to serve a statutory demand, this may be of little effect, at least until 30 September 2020.

It will be interesting to see whether England also extend the moratorium on forfeiture of commercial leases for non-payment of rent, which is currently due to expire on 30 September 2020.

RELATED:   GOVERNMENT EXTENDS MORATORIUM ON FORFEITURE OF COMMERCIAL TENANTSREAL ESTATE


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