Government Announcements to Support Landlords and Tenants
We were waiting with bated breath for the government to announce some changes to assist both landlords and tenants during this difficult Alert 4 lockdown period. On 15th April 2020, the Government announced changes to extend periods which apply to the cancellation of leases and the periods of time which apply before a mortgagee can exercise rights in relation to mortgaged land and goods. These changes will be passed into law on 27 April 2020 and will have a retrospective effect.
Under the Property Law Act 2007, a landlord was required to give a tenant at least 10 working days’ notice before it can re-enter and terminate a lease. This period has now been extended to 30 working days.
A mortgagee (i.e. a Bank) is now required to give 40 working days’ notice before it can exercise its rights in relation to the mortgaged property (for example; the right to enter into possession or sell the property). Previously this time frame was 20 working days.
If a party has a security interest over personal property (e.g. a car) they must now give 20 working days’ notice (increased from 10 working days’ notice) to the owner of that property or anyone else who has a security interest in that property before they can exercise rights to sell.
The Prime Minister has stated that these measures have been announced to bring commercial leases in line with the recent changes to rights to evict residential tenants. She urges commercial landlords to “be a good citizen” and consider what will happen if you do terminate a commercial tenancy during this time and who you will get to tenant these premises. She wants landlords to “take a long view, work with your tenant and be a good human being”.
We are hopeful that landlords will take this message to heart.
For more information on the changes announced by the government (including tax changes) read here.
“I have used Turner Hopkins for my legal services for over eight years. I have always found their level of service excellent and their work to a very high standard. I have used various lawyers at their firm for various businesses I have been involved with and have always had very positive experiences. I would highly recommend them.”
“Joy, we cannot thank you enough for your help with our purchase! You have been wonderful to deal with and so proactive (and patient with my numerous emails). We will be visiting NZ in April so will make sure we drop in to thank you in person.”
“I have struggled with different legal firms over the years, but over the past few years I have engaged with Turner Hopkins with various requirements from personal relating to wills, family trust, property settlements and contracts through to commercial engagements including employment advice, commercial lease agreements and general legal advice. I have engaged with a number of the people in the firm and always found them professional, punctual in their responses and very sound in the advice provided.”
“To Michael Robinson – I wanted to thank you and your colleagues for many years of excellent service to the Bank. You have an outstanding business that has proved to be one of the most reliable and ethical businesses that Collections have dealt with in the almost 9 years I was with the Bank.”
“I can't speak highly enough of Jenny. She got everything done in a timely manner and when my ex-husband threw a spanner in the works at the eleventh hour she got the required documentation to his lawyers and settlement back on track.”