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What does forfeiture of lease mean?
Forfeiture is a remedy that allows a landlord to repossess a tenanted property if the tenant breaches the terms of the lease. Accordingly, the lease will terminate, and the landlord can access the property again. This is referred to as ‘re-entry’.
Some commercial lease agreements will also specify other instances where the landlord can forfeit the lease.
Forfeiture of a lease is an extreme, but useful way for a commercial landlord to deal with a troublesome tenant.
How a landlord can exercise the right to forfeit
The lease must contain a forfeiture clause., which most modern leases do.
However,a landlord will have no right to forfeit if there is no written agreement. This is why it is important to have a lease which is properly drafted and executed. So if a tenant has gone into occupation on the basis of a verbal agreement, it will not be possible to forfeit the lease.
Forfeiture is a useful tool only if used correctly. Ther are many potential pitfalls so it is imperative to seek legal advice if you are a landlord considering this option. If you get it wrong it can create problems and you may find that you have inadvertently waived your right to forfeiture.
Whether you are a landlord or a tenant, if you need advice on forfeiture, contact Charlotte Green on 01827 317071 or cgreen@pickerings-solicitors.com .
