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Forfeiture

A forfeiture clause, which is contained in almost every commercial lease, provides the landlords with the legal ability to re-enter the property and end the tenancy in order to protect their interests.

Mark Oakley

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Property Litigation

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Dispute Resolution Specialists

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If a tenant breaches a tenancy covenant or fails to pay rent, a landlord may want to exercise their rights under the forfeiture clause and recover possession of the property.

At Judge & Priestley, we have a team of experts who can assist you to ensure you follow the correct procedure, thus avoiding any financial or reputational repercussions.

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Whether you’ve got questions or you’re ready to get started, our team are ready with expert legal advice.

Forfeiture of Commercial Leases

Most commercial leases contain a clause entitling the landlord to make a peaceable re-entry in the case of rent arrears. Consideration is required as to whether any requirements are met and if the right has arisen.

A Section 146 Notice is required to forfeit a lease for any other reason (other than non-payment of rent).

Contents of a Section 146 Notice

A Section 146 Notice must contain the following:

How the tenant has breached their lease
Ways to remedy the breach
The time limit for remedying the breach
Any demands for compensation

Your solicitor at Judge & Priestley will take you through this process step by step and ensure that the time limits for remedy and requirements for compensation adequately cover and protect your best interests.

Action following forfeiture

Forfeiture is always subject to a tenant’s right to relief. This is a discretionary remedy. The courts can determine whether to grant relief and so allow the lease to continue.

The tenant will generally need to remedy the breach and pay the landlord’s costs.

Tenants may seek to raise arguments that forfeiture was not valid, and they are entitled to damages.

Action following forfeiture

Forfeiture is always subject to a tenant right to relief. This is a discretionary remedy. The courts can determine whether to grant relief and so allow the lease to continue.

The tenant will generally need to remedy the breach and pay the landlord’s costs.

Tenants may seek to raise arguments that forfeiture was not valid, and they are entitled to damages.

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