Forfeiture of Leases

Forfeiture of leases and the importance of specialist legal advice

It is crucial that landlords hoping to bring lease forfeiture and possession action instruct a specialist solicitor to help ensure that the action is lawful. If the action is unlawful, it could lead to the leaseholder bringing a compensation claim against the landlord.

The following things will be taken into account by a specialist solicitor when deciding if action should be taken:

• Whether possession or forfeiture action is permitted by a clause in the lease for the breach in question

• Whether it is in the landlord’s better off having a leaseholder rather than no leaseholder at all

• How long it might take to find a new leaseholder

• How ground rent might change with the new lease

Forfeiture of leases – what to avoid

• Getting the peaceable re-entry procedure wrong:

Leases will often contain a clause allowing the landlord to enter the property in order to re-possess the property without taking legal action – this procedure is called ‘peaceable re-entry’. Once inside, the landlord can change the locks and take the leaseholder’s possessions out. However, if damage is done violently to the leaseholder or the property, you can be convicted under the Criminal Law Act 1977. This is therefore a risky procedure.

• Surrendering your forfeiture right:

Landlords surrender their right to forfeit a lease if they know that a leaseholder has breached the terms of the lease but then act in such a way that demonstrates beyond doubt to the leaseholder that their lease will continue e.g. asking for or taking any fees due.

An expert solicitor will be able to help a landlord to avoid any actions which will waive their right to forfeit.

NB – in certain circumstances it may be necessary for issues to be resolved in the Leasehold Tribunal – more properly known as the First-Tier Property
Tribunal.
Click here to read more about Leasehold Tribunal Advice