uncertain and challenging times.
code of practice for commercial property relationships
On 19 June 2020, the Government published The Code of Practice for Commercial Property Relationships During the Covid-19 Pandemic
The Code is strictly voluntary. The Code will apply until 24 June 2021. It is clear that the government are not anticipating an early exit from this emergency !
The Code acknowledges that legally tenants are liable for covenants and payment obligations under leases, unless this is renegotiated by agreement with landlords. Tenants who are in a position to pay in full are encouraged to do so. However, tenants who are unable to pay in full should seek agreement from landlords to pay what they can. Both parties should act in good faith, reasonably and flexibly.
The Code also considers service charge arrangements.
The Code states that it applies to all commercial leases held by businesses that have been seriously negatively impacted by the COVID-19 crisis, although it is expected that the hospitality, leisure and parts of the retail sectors will need it most. It notes that businesses within the agricultural sector may also want to consider the Code principles, while acknowledging the differing legal framework for agricultural tenancies.
This is important guidance but is not binding. The guidance does not bring an end to the frustrations of either landlords or tenants.
The Commercial Property Team
David Barton Consultant
Commercial Property 01908 689395David Barton joined Geoffrey Leaver Solicitors in 2014 along with his planning and property development team from Williams & Company in Ampthill. David is widely known for his expertise in helping farmers, landowners and property developers grow houses on their land. David now assists the team as a Consultant.
Emma Sidney Licensed Conveyancer
Residential Property 01908 689351A graduate of Northampton University, Emma qualified as a Licensed Conveyancer in 2005. She joined Geoffrey Leaver Solicitors three years later and deals with the lease, sale and purchase of commercial property and residential, as well as representing several national charity organisations.
Georgina Page Chartered Legal Executive
Commercial Property 01908 689361Georgina joined Geoffrey Leaver Solicitors in October 2014 from Williams & Company in Ampthill. Georgina completed the Legal Practice Course at Sheffield University after graduating from Sheffield Hallam University with a 2:1 in Law (LLB) and qualified as a Fellow of the Chartered Institute of Legal Executives in 2020.