Forfeiture of Lease: When and How Can a Landlord Take Back Possession?
When a commercial tenant breaches their lease—especially by failing to pay rent—landlords in the UK may consider forfeiture to regain possession of the premises. However, this legal process is technical, time-sensitive, and often misunderstood.
At Stretton Solicitors, we assist landlords in understanding and executing forfeiture correctly. In this article, we explore when forfeiture is permitted, how to carry it out lawfully, and the risks involved if handled incorrectly.
What Is Forfeiture of Lease?
Forfeiture is a legal right that allows a landlord to terminate a lease and retake possession of the property following a tenant’s breach of covenant. Most commonly, this arises due to:
- Non-payment of rent
- Unauthorised subletting or assignment
- Failure to maintain or repair the property
- Other breaches of lease terms
To enforce this right, the lease must include a forfeiture clause, and landlords must follow strict legal procedures to avoid invalidating the process.
When Can You Forfeit a Commercial Lease?
The right to forfeit arises when a tenant commits a serious breach of the lease. The most common trigger is rent arrears. In such cases, landlords may act immediately without notice. However, for breaches other than non-payment, Section 146 of the Law of Property Act 1925 requires a written notice before action can be taken.
This Section 146 Notice must:
- Specify the breach
- Request that the tenant remedy the breach (if possible)
- Allow a reasonable time to comply
Methods of Forfeiture – Peaceable Re-entry vs. Court Proceedings
There are two main methods by which a landlord can enforce forfeiture:
1. Peaceable Re-entry
This involves the landlord physically entering the property and changing the locks. It can only be done when the premises are unoccupied and must be executed with extreme caution. Using force or re-entering while the tenant is present could result in criminal liability.
2. Court Proceedings
If peaceable re-entry isn’t viable—or the tenant disputes the breach—landlords can apply to the court for possession. This route is often safer, particularly for mixed-use or occupied premises, but it takes longer and may incur greater legal costs.
Risks and Waiver of Right to Forfeit
One of the most common mistakes landlords make is waiving their right to forfeit. This happens when a landlord, after learning of a breach, accepts rent or otherwise acts as though the lease continues. Once waived, the right to forfeit for that breach is lost unless a new breach occurs.
Other risks include:
- Claims for unlawful eviction
- Loss of rent during possession disputes
- Costly litigation if procedures aren’t followed correctly
Always seek legal advice before attempting forfeiture to avoid these consequences.
Industry research shows that legal disputes over improper forfeiture of commercial leases have risen by over 15% since 2022, underlining the importance of following due process.
Get Expert Help With Lease Forfeiture
Forfeiture is a powerful remedy—but also a legal minefield. If you’re a landlord seeking to take back possession of a commercial property, make sure you act within your rights.
At Stretton Solicitors, we guide landlords through every step of the process—from issuing Section 146 Notices to court proceedings or peaceable re-entry. Contact our team today to protect your investment and take back control of your property lawfully.
Schedule a consultation now or call us for tailored legal support.