The first reported case to consider a pandemic rent suspension clause on a non-contested lease renewal. Find out more.
The first reported case to consider a pandemic rent suspension clause on a non-contested lease renewal.
The tenant (WHS) had served on its landlord (L) a notice under section 26 of the Landlord and Tenant Act 1954 seeking a new lease of its unit in the Westfield Shopping Centre at Shepherd’s Bush. By the time the matter came to court (November 2020) the country was in the middle of its second lockdown. However, although non-essential shops were closed, WHS’s store remained open as it contained a post office (making it an essential retailer). However, sales were down by over 90%.
The parties agreed on most of the terms for a new lease, but a few issues remained outstanding (including the rent). In particular, the parties agreed that the new lease should contain a pandemic rent suspension clause which, if triggered, would mean that WHS would have to pay 50% of the rent and the whole of the service charge and would have to account for any sums received from the government by way of subsidy or support in respect of rent. However, the parties could not agree on the trigger for that rent suspension.
Professional Development Lawyer
david.harris@brownejacobson.com
+44 (0)115 934 2019