COVID-19 and Covenant Breaches in Leases and Loan Facilities
We assist a number of clients with the day to day asset management of their portfolios. This includes:
Partner and Head of Department
On 16 March 2020 Number 10 advised those living in the UK against “non-essential travel” in order to curb the growing outbreak of Coronavirus. This encouraged many office-based businesses to communicate to their employees that they should work from home until further notice.
As the June quarter date fast approaches and the economic impact of COVID-19 begins to be felt across all sectors, what steps should landlords be taking to vary their lease arrangements with tenants who are unable to meet their rental obligations, and could a reduction in rental income due to COVID-19 put landlords in breach of their own obligations under their loan facilities?
As the UK eases its lock-down measures, employers need to start planning a safe return to work for staff. In the short-term, this means providing a ‘COVID-19 secure’ environment, enabling staff to maintain social distancing whilst attending work.
The restrictions imposed by the UK Government to help fight the spread of coronavirus have hit thousands of businesses over the last few weeks. An Office for National Statistics survey found that 25% of businesses had temporarily closed or paused trading in the UK, based on answers of over 5,000 businesses surveyed.
That is because following its recent consultation, the government has announced that it will soon become unlawful to continue to let a non-domestic property with an EPC rating below B, a move that the government estimates could cost approximately £5bn between now and 2030.
Though it may be tempting to earn extra revenue by renting out the spare desk in the corner of your office, Lauren Hart explains that there are necessary precautions to take.
Imagine this scenario. You own a site which is ripe for development in a few years. There are a number of tenants who still have leases which don’t expire for between two to three years, which fits in with your development timetable. There was one vacant floor last year but you agreed to let that to a new small business tenant on a one year lease and since that tenant said they may want to stay longer, you agreed that they could have a right in their lease to renew for another year. You agreed a low rent as it was such a short term and saved you the business rates. You didn’t want to bother with solicitors so your agent just issued your standard short term lease and after a couple of amendments from the tenant, this was completed in a couple of days.
The relocation plans of two European agencies, the European Medicines Agency (EMA) and the European Banking Authority from London to Amsterdam and Paris respectively, following Brexit, have been widely publicised. Political and economic consequences aside, the move may also have far-reaching legal consequences.
The UK retail sector has seen some turbulent times in recent years. In turn, traditional retailing is adapting and modernising service delivery methods.
The Court of Appeal last week handed down its ruling in the case of Dreamvar v Mishcon de Reya. The impact for the industry and profession is potentially huge – will it lead to a complete overhaul of the way property lawyers deal with purchase money?
Dentists, chiropractors, accountants and other professionals who own the premises from which they operate could benefit substantially from making their commercial premises an asset of their Self-Invested Personal Pension (SIPP).
In almost every aspect of life we all like to get a good deal. It is no different with commercial rent. Landlords and Tenants alike, both parties will be keen to maximise their profits and minimise their risks, which is why rent reviews are a particularly fundamental and heavily negotiated contract term. Essentially both parties want entirely the opposite from the other.
As a Chelsea fan, I had assumed that the likes of Manchester United and Manchester City would prove to be my team’s most formidable opponents this season. However, a family of four have sought to scupper Chelsea’s plans and in doing so, have demonstrated that rights to light remain an important consideration and a potentially expensive hurdle.
In short, this release of data will allow anyone to discover which companies own land or property in England and Wales, subject first to an online registration.
A business tenant who satisfies the criteria in section 23 of the Landlord and Tenant Act 1954 (LTA 1954) will have a statutory right to a new lease at the end of their current contractual term. When drafting or negotiating a renewal lease, it is tempting to assume that many of the terms under the original form of lease will continue to be fit for purpose. However, failing to reflect the changing commercial relationship between the parties can cause serious practical and financial issues later on.
Earlier this year, the Office for National Statistics published a statement saying that the Retail Price Index (RPI) "is a flawed measure of inflation with serious shortcomings and we do not recommend its use.”
Parties in commercial property transactions tend to agree heads of terms in writing and then leave it to their lawyers to polish the wording of the lease before the tenant goes into occupation.
When a tenant wishes to carry out works to premises which form part of a larger property, it is very often that the insurance arrangements in the relevant documents (agreement for lease or licence to alter for example) do not take into account the practical realities of what and who needs to be insured.
Since coming into force on 26 March, the Deregulation Act (the “Act”) has introduced several changes designed to free businesses from the burdens caused by regulations and existing laws.
Last week, on 26 May, further provisions of the Act came into force, including sections 44 and 45 which relax planning permission in London on short-term lets.
The Chancery Division Judge Mr Justice Morgan recently refused to grant Gordon Ramsay a declaration that a personal guarantee for rent was not binding because his signature had allegedly been unlawfully obtained.
Skip to content Home About Us Insights Services Contact Accessibility