Forfeiture of Lease Agreements

Forfeiture of a lease is a legal process through which a landlord can terminate a lease before its agreed end date, typically due to a tenant’s breach of covenant, such as non-payment of rent or unauthorized use of the property. While it can be a powerful remedy for landlords, the process must be handled with care and in strict compliance with legal procedures. Failure to do so can result in costly disputes, reinstatement of the lease, or even claims for unlawful eviction. At Stretton Solicitors, we provide expert legal advice and representation to both landlords and tenants, ensuring your rights are protected at every stage of a forfeiture dispute.

Forfeiture can generally be pursued when a tenant breaches a fundamental term of the lease, most commonly by failing to pay rent. However, it may also apply in cases of illegal subletting, property damage, or failure to comply with other lease covenants. In most commercial leases, the right to forfeit must be expressly written into the lease agreement, and any attempt to enforce forfeiture must follow the correct legal procedures — including issuing formal notices under Section 146 of the Law of Property Act 1925. Without proper service of notice and reasonable time for the tenant to remedy the breach, a landlord risks invalidating the forfeiture process.

The process of forfeiture can be complex, and landlords must tread carefully to avoid unlawful actions. In cases of rent arrears, forfeiture can sometimes be exercised through “peaceable re-entry” — physically retaking the property without a court order. However, this must be done lawfully and without conflict. For breaches other than rent, landlords must serve a Section 146 notice and give the tenant a chance to remedy the breach before initiating forfeiture proceedings. Getting it wrong can expose landlords to legal claims, reinstatement orders, or damages for trespass. That’s why seeking early legal advice is essential to avoid unintended consequences.

Tenants are not without protection. Even after forfeiture has been initiated, they may apply to the court for “relief from forfeiture,” which can restore the lease if the breach is remedied and any losses are compensated. Courts tend to favour preserving the lease where possible, especially when the breach is minor or financial in nature and the tenant acts promptly. Tenants facing a potential or actual forfeiture should seek legal advice immediately to understand their rights and build a strong case for relief. At Stretton Solicitors, we’ve successfully helped tenants reverse forfeitures and negotiate favourable settlements.

In commercial property, forfeiture is often used as a strategic tool during landlord-tenant disputes — especially where rent arrears are significant or where the property is underperforming. However, commercial landlords must weigh the legal, financial, and reputational implications of taking such action. For example, forfeiture may impact business continuity, ongoing contractual obligations, or the ability to re-let the property quickly. Our solicitors provide practical, commercial advice that balances your legal rights with your long-term property strategy, whether you’re seeking to enforce or resist forfeiture.

Forfeiture of lease agreements is a high-stakes process with serious legal and financial consequences. Whether you’re a landlord looking to take action or a tenant facing the risk of eviction, clear and strategic legal advice is essential. At Stretton Solicitors, our experienced team specialises in resolving forfeiture disputes with precision and professionalism. Contact us today to schedule a consultation and protect your position with expert guidance.