A guide to will and estate disputes
Losing a loved one is a difficult and emotional time. This period of grieving can be made worse if there is a dispute or uncertainty over a will or an estate.Read more
Unfortunately, the Government’s statement will still leave a lot of questions unanswered for many landlords and tenants desperate for some certainty as to what will happen moving forward. Until the draft legislation or further guidance is published, this is what we know so far:-
To encourage negotiation prior to the legislation, the Government has already:
Where an agreement has not been reached following negotiations, both the landlord and the tenant will need to undertake binding arbitration. The parties are expected to share the financial burden, indicating the landlords might not recover 100% of the sums due, or that any payment plans could be over long periods.
The arbitration process will apply to all commercial rent debt accrued as a result of Covid closure in sectors impacted by Non-Pharmaceutical Interventions (NPIs) (which means actions to limit the spread of the pandemic, i.e. closures).
Tenants will also be bound by the decision of the arbitrator and will have to pay debts accrued during the ringfenced period in accordance with any decision made. There is no further information on this at present.
It is intended to be impartial (via a set of clear rules) and only used as a last resort, providing a faster and easier resolution than the courts. Both parties will be expected to contribute towards the cost of the arbitration, but the arbitrator can also make a decision as to costs if a party is found not to have negotiated in the spirit of the legislation principles.
It is hoped that further information will be available in the coming weeks.
If you need further information or assistance with commercial property rents or other disputes, get in touch on 01332 226 150 or complete the form below.
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