What is a Forfeiture or Peaceful Re-entry?
A forfeiture of lease is a very powerful and established landlord’s remedy. The meaning of a ‘forfeiture’ is to terminate or bring a lease to an end. You can find the right to forfeit in most commercial leases. For government practice guidance on a forfeiture, click here. Another name for this service is a Peaceful Re-entry.
If your tenant is in breach of the covenants in your commercial lease, our experienced team can help. As a team we excel in forfeiting leases and delivering possession of commercial properties back to landlords. We are a fast and efficient nationwide service which is unrivalled in this sector. Your rental income should not be suffering just because your tenant’s business is.
Our experienced team provide all clients with peace of mind, making sure that the forfeiture of lease is lawful. It is very important to check that you are able to use forfeiture to end the lease. Typically, the clause on your lease has the name “re-entry”. As a landlord, you could be expose yourself to a damages claim. This could be for trespass and/or business interruption if an act is subsequently found to be unlawful.
There are 2 ways of forfeiting a lease. Either with or without a Section 146 notice. The landlord is required to serve a notice under section 146 if the breach of the lease is NOT based on non-payment of rent. Serving the notice gives the tenant warning that you intend to forfeit and as such gives them time to remove and hide their assets. We always suggest that you commence with a forfeiture if your tenant has not paid their rent. This means your tenant will be unaware of what has happened and catches them with the element of surprise.
Our Forfeiture of Lease Service Includes:
- The review of your lease to ensure that forfeiture / re-entry is an option available to you.
- The preparation and service of the appropriate legal notices.
- Attendance at your property by a certified bailiff to peacefully re-enter your premises when the tenant is not on site.
- The organisation of a verified locksmith to be in attendance.
- Delivery of keys back to the Landlord.
Forfeiting a lease and taking back possession of the premises is an alternative to instructing bailiffs to recover rent arrears. For the same breach of the lease, see Commercial Rent Arrears Recovery (CRAR) for further information on our CRAR service.
Following the eviction, we can arrange for an agent to supervise and give access to the tenant to remove any possessions. It is a legal requirement that you provide the tenant with an opportunity, to collect any items left at the property that belong to the tenant.
The tenant does have the right to apply to court for relief. This should be done by the tenant without delay, however they have upto 6 months to apply. If their application is successful then judge will order that you restore their tenancy.