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Practice paper

The impact of COVID-19 on service charges in commercial properties

Lorna Richardson
Journal of Building Survey, Appraisal & Valuation, 10 (1), 62-71 (2021)
https://doi.org/10.69554/TAWB2572

Abstract

The COVID-19 pandemic, and the resulting legislative measures and government guidance, have significantly affected all of our lives. This paper considers the implications of the financial difficulties faced by commercial tenants on the landlord/tenant relationship. The paper highlights issues in the practice of landlords, and surveyors advising them, in relation to works and services that come within the service charge provisions of a commercial lease, as well as examining how recent legislative interventions have limited recovery options for landlords faced with service charge arrears. The paper investigates the need for communication between parties to try to resolve difficulties the tenant may have meeting its financial obligations under the lease, as well as the need for any agreements reached to be properly documented in order to provide clarity and certainty for both landlords and tenants going forward.

Keywords: COVID-19; coronavirus; commercial lease; service charge; arrears; concessions

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Author's Biography

Lorna Richardson is a senior lecturer in commercial law at the University of Edinburgh Law School. She conducts research in the law of leases and contract law and has published extensively in both of these areas. Lorna is the author of Dilapidations and Service Charge (2020) and McAllister’s Scottish Law of Leases (5th edn, 2021). She has significant experience in providing continuous professional development training to the legal profession, judiciary, property and other professionals. Prior to joining the University of Edinburgh Lorna was a solicitor for seven years, practising as a commercial litigator, with a special interest in property litigation, for major Scottish law firms. She is also qualified to practise in England and Wales.

Citation

Richardson, Lorna (2021, June 1). The impact of COVID-19 on service charges in commercial properties. In the Journal of Building Survey, Appraisal & Valuation, Volume 10, Issue 1. https://doi.org/10.69554/TAWB2572.

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cover image, Journal of Building Survey, Appraisal & Valuation
Journal of Building Survey, Appraisal & Valuation
Volume 10 / Issue 1
© Henry Stewart
Publications LLP

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