Breach of Covenants and Forfeiture

• You can only exercise the right to forfeit if the terms of the lease specifically allow you to do this.
• If you attempt to remove a tenant from the property and the lease does not allow for forfeiture, you may be prosecuted for committing a criminal offence.
• If rent is in arrears, you must write to the tenant giving them the chance to repay monies owed. You must state the amount of rent owing, the period it has been unpaid, your name as a landlord and how the rent can be paid.
• If you want to forfeit the lease for any other reason, you must serve a “Section 146 notice” (from the Law of Property Act 1925), which includes information about the breach of the lease. Again, there is not an automatic right to apply for an order authorising forfeiture, as the tenant must be given an opportunity to remedy the breach.
• For a “Section 146 notice” to become valid, either the tenant must agree that a covenant has been breached, or an appropriate court determines this is the case.
• If the rent is not paid, or the breach is not remedied, the landlord may apply to the court for an order authorising forfeiture.
• The tenant can apply for “relief from forfeiture”, which will restore their lease. This will usually come into effect if the tenant promptly pays rent in arrears, remedies any breaches and pays the landlord’s legal costs.

At Judge & Priestley we can advise you on the steps to take if your tenants breach covenants. Forfeiture is difficult to achieve compared with enforcing the terms of the lease. Our expertise means we can instruct you on the correct steps to be taken, and actions to avoid.