Forfeiture

Forfeiture is a powerful remedy available to landlords, enabling them to terminate a lease when tenants breach their obligations. It serves as a critical tool for landlords to protect their interests, particularly in cases involving non-payment of rent or breaches of other covenants. At DTM Legal, our experienced Property Litigation team provides expert guidance on all aspects of forfeiture, ensuring landlords can act effectively and lawfully.

Contact Us

What is Forfeiture in England and Wales?

Forfeiture is the legal right of a landlord to end a lease before its agreed-upon term due to specific breaches by the tenant. Common grounds for forfeiture include:

• Non-payment of rent.
• Breach of lease covenants (e.g., unauthorised sub-letting, alterations or use).
• Insolvency of the tenant.

The process of forfeiture differs depending on whether the lease relates to commercial or residential property. Landlords must adhere to strict procedural requirements, including serving any appropriate notices and allowing time for remedy where applicable. Failure to comply with these steps can render the forfeiture invalid or expose landlords to claims for wrongful forfeiture.

The Role of a Solicitor in Forfeiture

Engaging a solicitor early in the forfeiture process is crucial to avoid costly mistakes. At DTM Legal, we offer comprehensive support to landlords, including:

• Assessment of Grounds for Forfeiture: Evaluating whether a breach justifies forfeiture and advising on alternative remedies if necessary.
• Drafting and Serving Notices: Preparing Section 146 Notices for commercial leases or other relevant notices, ensuring compliance with legal requirements.
• Litigation Support: Representing landlords in court proceedings if the tenant contests the forfeiture or seeks relief.
• Negotiations: Facilitating discussions to resolve disputes amicably where possible, avoiding the need for formal proceedings.

Our team works closely with clients and their asset managers to tailor strategies that align with their objectives and minimise risks.

Considerations for Landlords

Before initiating forfeiture proceedings, landlords should:

1. Review the Lease Agreement: Ensure the lease includes a forfeiture clause and assess its terms.
2. Understand Tenant Rights: Be aware of tenants’ rights to apply for relief from forfeiture, particularly in cases of rent arrears.
3. Evaluate Financial Implications: Consider the potential costs of forfeiture, including lost rental income, how long it may take to re-let the premises, any liability for business rates and legal fees.
4. Mitigate Risks: Avoid actions that could waive the right to forfeit, such as demanding rent payments after a breach has occurred.

A solicitor can provide clarity on these issues and help landlords make informed decisions.

Discuss Forfeiture with a Member of Our Team

If you are considering forfeiture or facing challenges related to tenant breaches, our Property Litigation team is here to help. With extensive experience handling forfeiture cases across England and Wales, we offer practical, solutions-focused advice tailored to your needs.

Take the first step towards resolving your property dispute effectively and efficiently. Contact Anna Duffy at 0151 230 1219 or by emailing anna.duffy@dtmlegal.com or James Holton at 01244 354824 or by emailing james.holton@dtmlegal.com.