What is forfeiture?
If a tenant breaches the conditions of a commercial lease the landlord is entitled to take legal action against the tenant, if the lease permits. This can be done via forfeiture.
How to effect forfeiture
Forfeiture is essentially the legal remedy whereby, following a breach of the terms of the lease, the landlord re-enters the property, regains possession, and ends the lease.
There are two methods:
- Peaceable re-entry – This allows for entering and securing physical possession of a property without confrontation.
- Court proceedings pursuant to CPR Part 55 - CPR Part 55 are the Civil Procedure Rules relating to possession proceedings.
Does the lease allow forfeiture?
The first thing to ascertain is if a lease allows forfeiture. When dealing with a commercial lease, a landlord will need to carefully consider all aspects of forfeiture in order to decide whether it meets their best interests. Forfeiture terminates the lease. It terminates the obligation on the tenant to pay rent.
Please read our Legal Hub article on this subject for more information.
Relief from forfeiture
The Court has the power to grant relief from forfeiture to ensure forfeiture is not used disproportionately. This is in the form of a Court Order reinstating a lease which has been ended by forfeiture.
Please read our Legal Hub article on this subject for more information.
How we can help?
Whether you are a landlord or a tenant, Pinney Talfourd can provide clear advice on all aspects of forfeiture and relief from forfeiture, including County Court & High Court Applications.
The commercial property litigation team have provided practical and robust advice to its property clients in many cases over the years and our experience of these situations can be invaluable.
