The measures apply to leases of remainders, but not to new leases entered into after 24 April 2020 (unless the lease was entered into by a renewal or renewal option or by another extension or renewal of an existing lease under the same conditions as the existing lease). In the event that a business is a “non-essential” business and therefore needs to be closed, it should check the termination provisions of its lease agreement, when it should inform the lessor of such a closure, and notify the event as soon as possible, even if it does not know if the event will lead to its impossibility. For example, a lessee may be advised to inform a building owner that the lessee is forced to close its activities and, although it hopes to be able to continue its activities, it may be forced in the future to exercise its rights under the provision relating to a case of force majeure. This reduces the risk of unnecessary litigation over the timeliness of a termination and can also create the opportunity to discuss agreements with the landlord on the payment of rent, especially given the fact that, in the current climate, renting commercial space can be difficult or even impossible for the landlord. The government has made some temporary legislative changes to give commercial tenants and landlords a better chance to overcome this difficult situation and ensure that the parties share the financial pain of the COVID-19 pandemic. You should talk to your lawyers and real estate professionals to discuss what the current situation means to you, what legislative changes may mean, and what to do next. If the tenant is not an eligible tenant, the rent can be increased under the rental agreement from 29 September 2020. Pending a possible request for deferral, modification or waiver on these grounds, lenders should verify the tenant`s obligations under the current lease agreement and any co-location requirements of other leases for the encumbered property, and include their own rights in the relevant loan documents and DNDS, to accept or reject proposed waivers or amendments.
