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Lease Forfeiture

Forfeiture of Commercial Lease In London

Based in United Kingdom, we are skilled in assisting commercial landlords handle their problems regarding commercial property and forfeiture.

In issues concerning eviction or forfeiture of commercial property, our assistance is always of benefit to the client.

Landlords wanting to regain posession of their property by terminating the lease or unpaid rent are few examples of the issues that we handle for our clients.

Considering that forfeiture is usually the easiest option for landowners to adopt, we solve the problem hastily by taking the most accurate and considerate next steps by assessing the situation from all ends. In United Kingdom, Commercial Rent Arrears Recovery (CRAR) is a new process that is an alternative to the previous law related to 'distress for rent'.

A landowner must consider the CRAR process and act accordingly if he is thinking about gaining posession of an asset, selling or disposing of them and then applying its proceeds to rent arrears.

History Behind Forfeiture

Forfeiture of a lease started after conviction of certain serious offences, hence followed from a ciriminal activity rather than failing to act.

Lease Forfeiture UK - Peaceable Posession

A lease forfeiture refers to the ending of a commercial lease. This is often done when the landowner practices their contractual right to end a lease in order to acquire a peaceable posession. This can only happen after a reasonable event has taken place.

By telling their bailiff to acquire a peaceable posession of their commercial property, a landlord in the United Kingdom is able to cause forfeiture of the lease. Lease Forfeiture is also a very effective and quick way to get payment by the tenant or a property back. If you are a commercial landlord who is interested in getting information on lease foreiture, we would be happy to discuss your requirements with you.

Basic Conditions for Lease Forfeiture in the UK

If a freeholder wants forfeiture proceedings, the following requirements must be taken into consideration:

  • • a 'forfeiture clause' must be present in the lease
  • • forfeiture cannot be applied if the breach is non-payment of any service or administration charges, except if the leaseholder had accepted that it is payable or in case of a final decision by the court.
  • • if the amount owed is less than £350 or has been good for less than three years, the forfeiture proceedings cannot be applied on a residential leaseholder for any service charges, administration charges or unpaid ground rent.

The provisions depend on whether the breach is according to the payment of rent or any other charges, or some other clause of the lease.

Kindy contact us at 0800 772 0910 or contact@lease-forfeiture.co.uk and we will be happy to assist you.

Non-Rent Breaches in the UK

In a scenario where a term of the lease has been breached (other than unpaid rent, a breach incapable of a remedy or any service charges), the freeholder is required to send a 'Section 146 Notice' of lease forfeiture to the tenant so they have a chance to solve things beforehand. This is an important warning notice.

A forfeiture notice is not supposed to be in any specific way, but it should include certain things like:

  • the breach of the term in the lease that the landlord is upset about
  • a prerequisite that the tenant must remedy the breach, in a case that it is possible
  • the amount of monetary compensation that the landlord requires from the tenant, if seemed appropriate

In the UK, the landlord looking for lease forfeiture is supposed to perform accordingly with the Section 168 of the Commonhold and Leasehold Reform Act 2002 according to which the breach must be proved or admitted by the tenant/leaseholder. Depending on the circumstantial situation, the tenant must compensate the monetary requirement or remedy the breach within a time that is reasonable to the freeholder. Moreover, a 'Section 146 Notice' cannot be issued or deem valid over the tenant before the right of re-entry of the freeholder has come about, according to the lease. The freeholder cannot get hold of the property without an order from the court in the United Kingdon, even in case of an established breach having taken place. However, a residential property that is empty or vacant can be reposessed without an order from the court.

Rent Breaches in the UK

A forfeiture notice is not obligatory if rent has been unpaid, but the freeholder must inform the leaseholder about the due date of rent in the form. After the expiration of the period of notice, there must be an elapse of the grace period for the right to forfeit to be practiced by the landowner. The time span of the grace period is figured out in reference to the lease's terms. Until the freeholder is allowed to posess the property by the court, enforcement of forfeiture is not allowed.

Waiving the Right of Lease Forfeiture

If any term in the lease has been breached under the forfeiture clause, the freeholder can proceed with the forfeiture process or waive their right to forfeit the lease. The waiver can either be expressed or implied. An implied waiver takes place when the freeholder is aware of a breach in the lease and they confirm that the lease must continue, such as by accepting rent or demanding for it. Additionally the acceptance of rent that precedes to arrears before the right to forfeit arises, does not equal for a waiver.

Get In Touch With Lease Forfeiture UK

For information or advice regarding lease forfeiture, kindly contact us on 0800 772 0910 or contact@lease-forfeiture.co.uk.