Landlord demanding rent!

JoannaKnowles

Good evening all,

I’m new to the forum, so apologies if I miss anything out. I’m looking for some advice and would appreciate any feedback possible.

I rent a studio from a private landlord. My business has had to close temporarily due to the Covid-19 outbreak. My rent is close to £2000 per month, and I’m worried I won’t be able to afford to pay it if we’re unable to open within the next few months. I have just received the £10,000 grant from the government, but this will only last around 4 months with my other expenses included. 

Hasn’t my landlord also received a grant to cover his loss of earnings (rental income)? Am I liable to pay all of the rent that will be accumulating over the next few months?

Thank you for your time.

Grumpy_chap

Hello Joanna, welcome to the forum.
It is not exactly clear what outcome you would like, and can I also confirm that the studio you refer to is a business property, not residential?
While this is hard, the best thing is to calmly do your own budget and then discuss with the landlord whether they can provide any assistance, either reduction or deferral of payments due.

gary83

Landlords have not received grants. Banks are been encouraged to offer short term mortgage holidays, these are not free and the interest continues to increase whilst you don’t pay down the capital, so it’s a short term fix that costs money.

If you signed a contract agreeing to pay £2000 a month then you remain liable to pay £2000 a month, the Corona virus has not changed your contract. Your options are you can see if the landlord is open to negotiations for a rent decrease, but that would be an act of goodwill, they’re under no obligation to do anything other than keep providing the studio for as long as you’ve agreed in your tenancy to keep paying it. The only other option is, if not tied into a long term contract look at renting somewhere cheaper.

bradders1983

Also the landlord can only apply for a mortgage payment holiday if there is actually a mortgage to begin with.

Grumpy_chap

There are also a lot of variables, such as the industry you are in, that affect other support (not rent) that may be available. 
It sounds like you have the small business grant. 
Are you able to claim under SEISS or furlough (CVJRS)?
Time to pay is being made available for VAT and corporation tax.
CBILS or Bounce-Back Loans may be available

Outside of support, is there any way you can either re-open (you don't say what your business is and whether that would be permitted under the lock-down rules), or adapt to sell on-line remotely?  Near us, some cafes that initially closed are now re-opening as take-away only and there is a flower studio that is selling through a local community facebook page - I am sure these business will generate less than they usually would but more than nothing by being totally closed.

How long have you been at the premises?  If you are a long-standing tenant with good relationship with landlord, that will make any conversation easier than if you just moved in, or regularly in dispute.  Also, the landlord's position (dependency on the rent) will make a difference to how much they can be able to give any leeway.

Mrsn

Yes you are liable to pay the rent that is due, virus or not that is a financial liability you have every month.

Your landlord may have been eligible to apply for a mortgage holiday if he has one, these do accrue interest though and some of the conditions attached to the payment holidays can be hideous. Regardless it doesn’t change the above.

I would recommend looking at turn2us or entitled to which are benefit calculators. You may find you qualify for some help whilst your finances are impacted. 

sharpe106

What is it you do from the studio? As I would have thought most buisness will be operating again by August.

Undervalued

JoannaKnowles said:

Good evening all,

I’m new to the forum, so apologies if I miss anything out. I’m looking for some advice and would appreciate any feedback possible.

I rent a studio from a private landlord. My business has had to close temporarily due to the Covid-19 outbreak. My rent is close to £2000 per month, and I’m worried I won’t be able to afford to pay it if we’re unable to open within the next few months. I have just received the £10,000 grant from the government, but this will only last around 4 months with my other expenses included. 

Hasn’t my landlord also received a grant to cover his loss of earnings (rental income)? Am I liable to pay all of the rent that will be accumulating over the next few months?

Thank you for your time.

Not for his landlord activities. If he has another business he may have got one for that but if he just owns property and rents it out he will have no income if the tenants don't pay the rent.