Leasehold Property Forfeiture of Lease
The ability to forfeit provides a landlord with the ability to re-enter a property based on a breach of the lease by the tenant.
This action is done in this case, in order to terminate the lease.
There are various breach reasons and termination in certain cases can take place with immediate effect. Alternatively there may be the requirement for a notice period.
The most suitable way for the landlord to effect this is to rely on a particular clause in the lease. A forfeiture clause will provide the landlord with the right to forfeit in certain circumstances.
What should be noted for a leasehold property forfeiture of lease
In order to effect leasehold property forfeiture of lease, the landlord should also be careful to ensure that the lease clause relied upon genuinely covers the breach.
Having confirmed this, the landlord must then follow a statutory notice procedure before the lease can be terminated.
Other than the non-payment of rent, in all cases, a s146 notice must be served on the tenant giving them time to remedy the breach.
This notice must set out the breach and clearly request that the breach is remedied.
Only if these matters are met and the tenant still fails to comply within a reasonable period and/or pay reasonable compensation can the landlord effect the forfeiture.
Why choose Clearway Debt Squared?
Clearway Debt Squared specialise in leasehold property forfeiture of lease – please call us now if you are experiencing difficulties with a commercial tenant not upholding the terms of their lease.