Forfeiture for non-payment of rent

Forfeiture of the lease can be one of the most immediately effective remedies for non-payment of rent.  The defaulting tenant may turn up to their business premises to find that the locks have been changed, with no warning, and the only way they can get back in is to pay the arrears.

There are problem areas, though.  While forfeiture may result in recovery of possession, it will not necessarily produce payment. Conversely, the lengthy period in which tenants may obtain relief from forfeiture can complicate re-letting.  The rules surrounding applications for relief are highly technical, and in places unclear.

We will explore the practical and legal issues and highlight the key points to be aware of to ensure that forfeiture delivers the result that the client requires.

Topics covered will include:

• Must a s.146 notice be served?
• Avoiding waiver of the right to forfeit
• Is a pre-emptive application for relief possible?
• Can mortgagees, chargees and sub-tenants apply for relief, and what are the rules?
• What are the pros and cons of peaceable re-entry?