Lease forfeiture takes place when a landowner in London practices their contractual right to regain posession of their land against the tenant's wishes. This usually happens in cases where a breach of contract has taken place by the tenant. Lease forfeiture mostly happens through a Certified Enforcement Agent who takes posession of the property in London peaceably. Under Section 24 of the Landlord ad Tenant Act 1954, forfeiture is a preserved contractual right. Under the terms of the most leases, a peaceable posession is obtained through a bailiff from Lease Forfeiture entering the property in London, inclusive of any outside compound as well.
Lease forfeiture becomes a good tool if you're unable to execute CRAR as the Certified Enforcement Agent won't be able to enter the London property. It can also be of use in cases where there are either less goods or none available to seize, or the goods on property belong to a third party. Currently a landowner is able to forfeit a lease in Hackney, Kensington, Lambeth, Islington, Chelsea, Hammersmith and Fulham, or even Tower Hamlets on the basis of the words in the lease. Unpaid rent is the most common one of them.
Other reasons can be:
The landlord must also aim to regain posession of his London property if he wishes to acquire the damages resulting from breaches. If the tenancy is inclusive of a 'forfeiture clause' only then can the landlord forfeit the lease. In case of a breach, this forfeiture clause allows the Certified Enforcement Agent of the landlord to re-enter the London property. The forfeiture clause must also resemble words like "if the rent remains unpaid for a period of 21 days then the landlord may peaceably re-enter and forfeit the lease". Under the Section 146 of the Law of Property Act 1925, and based on the type of breach made, the landlord in London might or might not have to serve the accurate notice.
If the breach is of unpaid rent and the landlord has not taken any action to waive that breach, in that case the landlord can forfeit the lease in London without issuing a notice. Unpaid rent is considered as so disgraceful that the landlord does not wish to continue the lease with the current tenant. The landlord is not supposed to say or do anything which waives the right for lease forfeiture in Hackney, Islington, Lambeth, Kensington and Chelsea, Tower Hamlets, or Hammersmith and Fulham.
If the landlord, his bailiff or the agent incharge acknowledges that the lease is continuing in any of the following ways, a waiver in London might be construed:
In this scenario, the landlord is supposed to wait until the due date of payment of rent for that particular month or quarter rent.
There are two ways in which a landlord can re-enter the property and forfeit:
In case of a tenant, sub-tenant or a lender wanting to continue being a tenant, they are allowed to apply to the court for relief from forfeiture. On the other hand, the court in London can enforce conditions which might ask the tenant to pay rent arrears or solve the issue of breach before it is in the open.
For any information regarding lease forfeiture, contact us on 0800 772 0919.