1 October 2018

Commercial Lease Forfeiture

Background

Forfeiture is a powerful option for a landlord to re-enter business premises and bring a lease to an end. The lease can be forfeited when the tenant does not pay the rent, breaches other terms of the lease, or becomes insolvent.

It is important to check the terms of the lease before proceeding with forfeiture. For all breaches of the lease other than the non-payment of rent, you will need to give the tenant a Section 146 Notice of your intention to forfeit the lease.

Common Law – Forfeiture of Lease / Peaceful Repossession

Using common law for forfeiture of lease is a very quick and effective solution without the need of making an application to a court.

The Certificated Enforcement Agent will peaceably enter the premises, change the locks, take utility meter readings, and display the correct notices of forfeiture. An inventory of all valuable goods is taken in case there are any subsequent disputes over the forfeiture of lease.

Keys are returned to the landlord or the landlord’s agent.

If required the Enforcement Agent can provide supervised access to the tenant for removal of any possessions. If the tenant fails to claim possessions left on site you may need to store them for a period and provide appropriate notice to the tenant.

Forfeiture of Lease can usually be completed within 24 hours of instruction.

Combining Forfeiture and CRAR

CRAR must be completed first before Forfeiture of Lease is undertaken as CRAR cannot be used if the lease has already been terminated.

However, if your main concern is to recover possession of the property you may exercise forfeiture of lease first and pursue the tenant for outstanding rent, service charges and insurance by obtaining a County Court Judgment. If above £600 this can then by transferred to the High Court for enforcement.

Contact a local
Certificated Bailiff
Enforcement Agent

England & Wales

please wait map loadingclick to refresh map