What happens if I need to sign a new commercial lease in the future?
The outbreak is certainly going to have an impact on new lease negotiations.
Undoubtedly many transactions will be put on hold or indeed stop entirely. Where matters are ongoing, tenants may well look to strengthen rent suspension provision.
It is also possible that tenants and their representatives will also now seek to include termination rights for unseen events. In this regard, the concept of force majeure may start to appear more often in leases.
In both of the examples above, such attempts are not likely to be well received from landlords who will undoubtedly suggest that tenants ensure that their business interruption insurance policies are robust enough to protect the tenant in the event of any future pandemic events.
Another approach tenants might adopt going forwards in negotiations for a new lease (or indeed seeking to vary existing leases), is to move away from the traditional market rent model to a turnover rent arrangement. This will offer some protection going forward if trading conditions deteriorate, but again getting institutional landlords to agree such an approach may prove difficult.
Related FAQs
Similar to the position for claims between 1 August 2020 and 31 October 2020, for claims between 1 July 2021 and 30 September 2021 there will be a cost to businesses of furloughing staff, which will gradually increase until the scheme closes at the end of September as follows.
- From 1 July 2021 employers will be required to contribute 10% of wages, with the Government contributing 70%.
- From 1 August 2021, the employer contribution increases to 20% and the Government will contribute 60%.
- 30 September 2021: scheme closes.
Employees will continue to receive 80% of their current wages, up to £2,500 a month.
It is clear that we are emerging from a completely unprecedented period of disruption for many businesses, and this may have had a huge impact on their contractual arrangements both with suppliers and customers.
As the lockdown eases, and we get back to business, it’s important that businesses take stock of what has happened, and ensure they review and address the legal and contractual consequences of what has been happening since the start of the global pandemic.
“Switching” is where you can transfer from one visa category to another without leaving the UK. However, in many instances where an individual wants to change from one visa category to another, they have to leave the UK and apply from the country they normally reside in.
There are currently limited concessions in place due to the pandemic where you are able to switch visas from within the UK instead of applying from overseas. These are regularly updated and so please contact us for further information.
Workers who have not taken 20 days holiday entitlement due to Covid-19 can now carry it over into the next 2 leave years. It only applies where it was not reasonably practicable for a worker to take their annual leave due to the coronavirus.
This is a concern for many businesses at the moment.
Firstly, the directors need to be mindful of their duties to creditors . Click here for further information on those duties and the measures introduced by the government to help support directors during these difficult times.
There is also a raft of funding and grants as well as commercial finance that might be available to you. Click here for further information or contact us if you would like to discuss further.
If you are coming under increasing creditor pressure, there are other options to explore like the new “moratorium” procedure, which allows viable businesses in financial difficulty to work with an insolvency practitioner to obtain at least 20 business days’ breathing space from creditors to allow the business to formulate a plan to deal with its financial problems.
If you have any concerns about the viability of your business you should speak to your advisors, whether that is your lawyers, accountants or an insolvency practitioner who should be able to help you.