Understanding Forfeiture of Commercial Lease: The Implications and Considerations
Forfeiture of commercial lease is a legal process that allows a landlord to terminate a lease agreement and repossess the leased property due to the tenant’s breach of lease terms. This action is typically taken when the tenant fails to pay rent, violates other lease obligations, or becomes insolvent.
In this blog, we will explore the concept of forfeiture of commercial lease, the procedures involved, and the implications it has on both landlords and tenants. As a commercial landlord or managing agent, chances are that at some point you may need to consider ending a lease early and evicting your tenant. Most commercial leases contain a specific “Forfeiture of Lease” clause allowing the landlord to re-enter if the tenant breaks certain conditions.
Ground for Forfeiture
A Commercial Landlord may decide to Forfeit the Lease if there are grounds for forfeiture, including non-payment of rent, persistent breaches of lease terms, or the tenant becomes insolvent.
Discussing the importance of clear lease agreements and the need for tenants to understand their obligations.
Authority to forfeit a lease
Most commercial leases contain a clause that allows the landlord or their agent to peacefully re-enter the premises due to a breach of the lease conditions as a result there is no requirement for a court order. If there is a breach of lease other than rent arrears the tenant should be served with a section 146 notice allowing the breach to be rectified within a set period of time.
How it works
On the receipt of the landlords authority an enforcement agent can attend your commercial property alongside a locksmith to effect peaceful entry to the premises on the landlords behalf. Once inside the agent will change the locks and carry out an inventory if required, the agents will display the required notices warning others of the consequences of any unauthorised entry. This will also include details of how goods which remain at the premises can be claimed back by the former tenant. Sometimes, where the relationship between landlord and tenant has broken down a supervised access to facilitate this can be arranged with the former tenant.
Considerations
Forfeiture of a commercial lease is a significant legal action that can have far-reaching implications for both landlords and tenants. It is crucial for both parties to understand their rights and obligations under the lease agreement and to seek legal advice when facing potential breaches or disputes.
Why instruct West Country Bailiffs to carry out forfeiture of commercial lease
On the receipt of written instructions, our agents will attend your property alongside a locksmith and gain peaceful entry to the premises. Once inside we will change the locks and carry out an inventory if required, and our agents will display the required notices warning others of the consequences of any unauthorised entry. This will also include details of how goods which remain at the premises can be claimed back. If required, supervised access to facilitate this can be arranged with the tenant.
- Certificated Enforcement Agents conduct the repossession
- Immediate confirmation of success
- Written report supplied as required
- Inventory supplied
- Replacement locks/padlocks installed by professional
- Notice of Forfeiture clearly displayed (Torts Notices)
- Keys supplied to a nominated contact
If you need to evict a commercial tenant by lease forfeiture you can Instruct Us Forfeiture Of Commercial Lease Here or by email enforcement@westcountrybailiffs.co.uk. You can also call us on 01803 895441 to speak with one of enforcement managers. West Country Bailiffs will act on your instruction within 24 hours and we cover all towns Cornwall, Devon, Somerset, Dorset and Bristol including Penzance, Truro, St Austell, Plymouth, Torquay, Exeter, Taunton, Bridgewater and Weston-Super-Mare
