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Moratorium lease. Summary of the measures adopted by Royal Decree-Law 11/2020, of the 31st of March

With the entry into force from April 2, 2020, the Government has expanded different measures in light of the situation caused by Covid-19. Among them, it stands out the measures regarding housing leasing. The requirements to be met by the tenant must be borne in mind, and the malicious use of the extension by the tenant who does not comply with the requirements established in the standard must be avoided.

Francisco Lorenzo Martínez

Date 03/04/2020

With the entry into force from April 2, 2020, the Government has expanded different measures in light of the situation caused by Covid-19. Among them, it stands out the measures regarding housing leasing. The requirements to be met by the tenant must be borne in mind, and the malicious use of the extension by the tenant who does not comply with the requirements established in the standard must be avoided.

1.-  Housing leases.

-Suspension of the eviction procedure and launches for vulnerable households without housing alternatives.

Eviction procedures arising from the leases of habitual residence are suspended. For the application of this measure, the lessee must prove that he is in a situation of supervening social or economic vulnerability. The suspension will be granted for a maximum period of 6 months from the entry into force of this RD-law in the BOE, that is, from April 2 to October 2, 2020

-Extraordinary extension of the leases of habitual residence.

Upon request of the lessee, those habitual residence contracts subject to the Urban Leasing Law may be extended, and that within the period from the entry into force of this royal decree-law (April 2) until the day two months have elapsed since the end of the alarm state, the period of compulsory extension or tacit extension of the contract ends. 

The extraordinary extension will have a maximum period of 6 months, in which the same conditions agreed in the contract must be maintained.

It is obligatory for the lessor to accept this extraordinary extension, unless the parties mutually agree to other conditions.

-Moratorium on rent payment.

For the application of the moratorium all these requirements must be met:

1.-  Contract of lease of habitual residence according to the Law of Urban Leasing.

2.-  The landlord must be a “large holder” of properties (10 or more for rent, garages and storage rooms are excluded and own more than 1,500 m2), as well as companies or public housing entities having said consideration of “great holder”.

3.-  Request for a moratorium by the tenant within one month from the entry into force of the rule (April 2 to May 2), which must be in a situation of economic vulnerability according to art. 5 Royal Decree-Law 11/2020, of March 31, meeting all the requirements established in its art. 6.

This extraordinary moratorium will not apply if, prior to the Royal Decree-Law, the parties have voluntarily agreed to a temporary postponement of rent payment..

4.-  In the cases in which the lessor is not considered a “major tender” for housing, the lessee may request, within a period of 1 month from the effective date of the rule (until May 2), the temporary postponement of payment. of the rent, provided that it had not been agreed by the parties voluntarily prior to the entry into force of the Royal Decree.

-Approval of a line of guarantees to cover tenants in situations of social and economic vulnerability as a consequence of the expansion of COVID-19.

A line of guarantees with full coverage of the State will be made available to banking entities, so that they can offer transitory financing aid to people who are in this vulnerable situation, with a repayment period of up to six years, exceptionally extendable by four others and without, in any case, accruing any type of expenses and interests for the applicant.

Transitory financing aid must be used to pay the rent and may cover a maximum amount of six-monthly payments.

These temporary financing grants can be accessed by all tenants who are in a situation of vulnerable vulnerability as a consequence of the expansion of COVID-19, and in the situations defined in article 5 of the Royal Decree-Law.

-State housing plan

A rental aid program is approved, called «Aid Program to help minimize the economic and social impact of COVID-19 on regular home rentals».

The purpose of this program will be to grant rental aid to people who are in a situation of economic and social vulnerability that has arisen in accordance with article 5 of the Royal Decree-Law.

The amount of this aid will be up to 900 euros per month and up to 100% of the rental income or, where appropriate, up to 100% of the principal and interest of the loan that has been subscribed with which the rent payment of the habitual residence has been satisfied.

A new “Program to help victims of gender-based violence, people evicted from their usual home, homeless people and other especially vulnerable people” is also established to facilitate the need for housing for victims of gender-based violence.

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