Example Case Study of a local Wimbledon business falling behind in outstanding debts and rent arrears.
The impact of the pandemic devastated commercial sectors all across the UK, following the mandated government closures. Landlords and tenants alike both suffered the consequences.
In November 2021 the government announced additional measures to help businesses deal with the arrears of commercial rents accrued due to the pandemic.
Here is an example case study of how we could help a potential prospect.
A small local business in Wimbledon was just one of many businesses with outstanding debts and wants to understand how to benefit from the new measures introduced by the government.
How can Dixcart Legal help?
We can provide advice regarding the new Code of Practice for Commercial Property, which officially came into force on 25 March 2022, and how it is meant as a ‘best practice guide’ to assist in negotiations to enable viable businesses to survive. It applies to all commercial leases where businesses have accrued commercial rent debts since March 2022.
We are able to help commercial property tenants start negotiations with their landlord in a manner which helps the business owner preserve their business, but also ensure that their debts do not come at the expense of their landlord’s insolvency. We can help achieve a fair balance.
To Note: The new act applies to rents accruing between 21 March 2020 and (likely the) 18 July 2021 and apply to business premises that were mandated to close by the Government but limited to leases that fall into Part II of the Landlord and Tenant Act 1954.