With the “credit crunch”, and a general slowing down of the business market, it is likely that some tenants will start to breach the terms of their lease and fail to make payments. One of the options available to the landlord in this situation may be forfeiture of the lease.

What Is Forfeiture?
Forfeiture is early termination of a lease due to a breach of covenant of the tenant, such as failure to pay the rent. The lease must contain an express clause for re-entry if there is a breach, and the landlord must not have “waived” the breach. In the case of non-payment this could happen by agreeing to sub-let, or reassignment of the lease or accepting a different amount of rent.

How To Forfeit A Lease
The lease can be forfeited by entering the premises or by court proceedings. In either case, before any action is taken, we strongly advise that legal advice is obtained to protect your position. If you are a tenant who has been failing to pay

rent, early legal advice may prevent this action by a landlord.

Take Early Advice
For a full assessment of your rights to forfeit, or if your landlord is considering forfeiting your lease, please click here for local office contact details.