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Commercial Lease Forfeiture in London, Greater London

A landlord is able to re-enter the property in London after a breach of lease contract by the tenant through the act known as forfeiture of a commercial lease. Peaceable Possession is a process through which the landlord can regain posession of the London property immediately, depending upon the type of breach made. Alternatively, the landlord can also proceed to court to forfeit commercial lease as soon as the notice has been sent, or as soon as possible if the breach is unpaid rent.

Use of Lease Forfeiture in London, Greater London

We advise throughout each aspect of the forfeiture process, which includes:

  • • reveiwing of the lease
  • • clarifying if the right to forfeit has arisen or not
  • • preparation and sending of the 'Section 146 Notice'
  • • arrangement of forfeiture agents for a peaceable re-entry on the property for commercial lease
  • • issue court proceedings
  • • arrangement of a posession order by the court and its enforcement

Forfeiture of Commercial Lease in London, Greater London

A landlord must establish their right to forfeit a lease if they want it to be successful in Islington, Kensington, Lambeth, Hackney, Chelsea, Tower Hamlets or, Hammersmith and Fulham. In most cases, a freeholder is reliant on a specific clause which has been breached. Moreover, landlords in London should be careful with the proceedings because the tenant can claim for wrongful forfeiture in a case where a lease is forfeited before the right to forfeit arises. Hence, legal advice is recommended for handling a breach. After the establishment of the right to forfeit, except cases of unpaid rent, the landlord in London is supposed to follow a notice procedure and serve the notice in regards to the Section 146 of Law of Property Act 1925.

Following are the specifications of the 'Section 146 Notice':

  • • the breach details
  • • remedy of the breach to be done under a reasonable time by the tenant in a case where a remedy is possible
  • • the amount that the leaseholder must pay for the breach as a compensation

The notice shall be served as per the specific provisions of the notice written in the commercial lease. If the tenant is unable to remedy the breach within a particular timeframe or does not compensate the amount required, the landlord can issue court proceedings or peaceably re-enter the London property in order to regain posession of the commercial property.

Losing the Right for Forfeiting Commercial Lease in London, Greater London

There is also a chance for the freeholder to lose their right to forfeit by taking certain actions that acknowledge that the commercial lease is in continuance in Islington, Kensington, Lambeth, Chelsea, Tower Hamlets, Hackney or Hammersmith and Fulham. At this point the landlord or their agent takes action and unambiguously acknowledges that the commercial lease is in continuance and informs this to the tenant as well. This is inclusive of the landlord or their agent asking for the payment of rent, which is due as a result of the breach by the tenant. Whether the step is intense or not is dependent upon whether the breach falls under 'continuing' or 'once and for all'. The former will be able to withstand the constituting of waiver of the right to forfeit, but the latter will not. Certain events can become a hurdle in the right to forfeit, such as the tenant going into administration in London or in cases where the freeholder has started to take steps in forfeiting procedures.

In order to get further information or advice for commercial lease forfeiture, you can contact us on 0800 772 0910.