Forfeiture
Forfeiture can be a very effective remedy for the landlord. The landlord may use this remedy providing amongst other things, that there is an express provision in the lease to do so.
There are different procedural steps that need to be taken to forfeit a lease depending on the type of breach that has occurred. Where a tenant has breached a term in the lease (with the exception of payment of rent), the landlord must serve a notice upon the tenant pursuant to s146 of the Law of Property Act 1925. Such a notice must specify the breach, require the tenant to remedy the breach (where possible) and pay the landlord compensation for the breach. Although a time limit is not required to remedy the breach, a failure to provide a reasonable time could lead to the forfeiture being deemed unlawful.
Where a tenant has failed to pay rent, such a notice is unnecessary. However, the landlord must serve a rent demand upon the tenant unless such a requirement is specifically excluded in the lease.
If a tenant fails to remedy the breach or satisfy a rent demand, the landlord can forfeit the lease.
Methods of Forfeiture
A landlord may forfeit the lease using either Court proceedings or peaceful re-entry. Making an application to the Court can be time-consuming and costly but it does provide the landlord with greater certainty of securing possession.
Peaceful re-entry is an alternative method of forfeiture for the landlord and is more efficient than the Court. Peaceful re-entry may only be used when the premises are empty and providing that the premises are not of mixed use, i.e. where there is no residential element to the premises.
Relief from Forfeiture
A tenant can apply to the Court for relief when a landlord has forfeited the lease. Where the lease has been forfeited for failure to pay rent, the tenant will generally be entitled to automatic relief providing the tenant pays the arrears and the landlord's costs before a hearing.
Where the landlord has forfeited the lease pursuant to a s146 notice, the tenant can apply to the Court for relief once he has been served with the s146 notice. The Court has a very wide discretion to grant or refuse relief.
