Insolvency

Forfeiture of Lease

 

When a tenant breaches the terms of their lease or fails to make the payments due, one of the options available to the landlord may be forfeiture of the lease.

Forfeiture is the early termination of a lease due to a breach of covenant by 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, forfeiture could lead to an agreement to sub-let or to reassign the lease or to accept a different amount of rent.

We strongly recommend you take early legal advice to protect your position.

If you would like further advice, please call a member of our Corporate Business team on 01392 848954, or request a call back by filling in the form.

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