{"id":182761,"date":"2023-09-01T04:13:50","date_gmt":"2023-09-01T03:13:50","guid":{"rendered":"https:\/\/legalvision.co.uk\/?p=182761"},"modified":"2025-12-02T23:10:53","modified_gmt":"2025-12-02T23:10:53","slug":"forfeiting-lease","status":"publish","type":"post","link":"https:\/\/legalvision.co.uk\/commercial-lease-property\/forfeiting-lease\/","title":{"rendered":"Key Considerations Before Forfeiting a Lease"},"content":{"rendered":"\n

When you lease your commercial property<\/a> to a business owner, they will be your commercial tenant for the lease term. However, leases do not always run smoothly; sometimes, a tenant may not comply with their obligations under the lease. Any breach by the tenant can be a problem, as it may lead to a loss of rent or other costs. Where this occurs, you may consider your right, as a landlord, to forfeit the lease. This article explores key considerations before forfeiting a lease.\u00a0<\/p>\n\n\n\n

What is Forfeiture?<\/h2>\n\n\n\n

Forfeiture in a commercial lease is when the landlord evicts a tenant, and the lease terminates. This process allows the landlord to gain access to the property and retake possession, also known as \u2018re-entry\u2019.\u00a0<\/p>\n\n\n\n

Most leases contain an express right to forfeit the lease, which is explicitly set out in the lease agreement. The relevant provision will usually set out the grounds for which you can exercise forfeiture. In the case of rent, this may include an arrears buffer before the right arises, such as 21 days. If there is no express right to forfeit the lease, the ability to do so becomes more technical. It can still arise, but only for breach of a condition <\/em>which is a matter of legal interpretation.\u00a0\u00a0<\/p>\n\n\n\n

A landlord may decide to forfeit the lease if the tenant does not comply with their obligations or has not paid their rent.\u00a0 However, forfeiting is often the last option landlords resort to, as it is particularly harsh for tenants and also means they regain an empty property, which may then be subject to rates and other costs.\u00a0\u00a0<\/p>\n\n\n\n

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Forfeiting a commercial lease is a significant action as it means the lease no longer exists and can only be \u2018revived\u2019 by an application to court for relief against forfeiture. Therefore, commercial landlords must consider specific issues before taking this action.<\/p>\n<\/div>\n\n\n\n

Key Considerations<\/h2>\n\n\n\n

Is This the Most Appropriate Action?<\/h3>\n\n\n\n

Before deciding to forfeit your commercial lease, consider whether it is the most appropriate course of action in the circumstances. Notably, is there a real benefit to taking back possession of your property? It follows that you must begin advertising your property and looking for a new tenant. There may also be a period when you are without rental income, and the property appears vacant.\u00a0<\/p>\n\n\n\n

If you can discuss the issues with your tenant and come to a resolution, forfeiture is unnecessary. Negotiation with your commercial tenant can be highly relevant where their lease breach is not for rent arrears. <\/p>\n\n\n\n

There are other, less extreme alternatives to forfeiture. If the reason for a breach of the lease is that your tenant has unpaid rent, you may be able to secure the rent in another way. For example, you might:<\/p>\n\n\n\n