Forfeiture of Lease Solicitors

Your Trusted UK Lease Forfeiture Experts - Duncan Lewis Solicitors

Under the Law of Property Act 1925, commercial landlords can serve a Section 146 Notice on tenants in breach of covenant for forfeiture of the lease.

A breach of covenant relating to a commercial tenancy agreement might involve:

• Criminal activity on the premises
• Dilapidations
• Obligations to repair
• Rent arrears.

Taking legal advice sooner rather than later is advisable in cases involving forfeiture of a commercial lease, as both landlords and tenants may prejudice their own case if they are unaware of all the legal implications involved in forfeiture and breach of covenant.

Forfeiture – Legal advice for commercial tenants

Tenants served a Section 146 Notice because of a dispute over covenants to repair or dilapidations may be able to serve a counter notice on the landlord under the Leasehold Property (Repairs) Act 1938.

Under the Landlord and Tenant Act, the landlord may make a claim for damages for losses incurred as a result of a breach of covenant – damages are limited by Section 18 of the Act, however.

Duncan Lewis can also advise tenants on how to avoid forfeiture for breach of covenant, including forfeiture because of rent arrears or tenant’s obligations to repair.

It is vital that tenants at risk of forfeiture – or landlords wishing to serve a Section 146 Notice on a tenant – take expert legal advice from a commercial property solicitor.

Forfeiture – Legal advice for commercial landlords

Forfeiture must be carried out in accordance with the law – and also peacefully, as harassing tenants or using verbal abuse or threats of violence towards a tenant may result in a criminal prosecution under the Criminal Law Act 1977.

Landlords must also be vigilant about what is said in any correspondence to a tenant, in case this prejudices a landlord’s right to forfeit the lease for breach of covenant – or prevents a landlord from claiming damages for dilapidations or other losses incurred as a result of tenant’s breach of covenant.

It is also important to remember that taking possession of commercial premises through forfeiture may also impact on a landlord financially if the property remains empty.

Once a commercial lease has been forfeited, a landlord will not only lose revenue from its tenant, but will be liable for commercial rates and maintenance and repairs to the property – and will have to secure it against the risk of trespass from squatters if it is not re-let quickly.

In such cases, it may be an option to consider negotiating with a tenant over any issues which have led to the dispute.

Duncan Lewis commercial property solicitors advise both landlords and tenants on forfeiture for breach of covenant – and can advise on alternatives to litigation in cases of forfeiture, including dispute resolution and mediation.

Duncan Lewis Commercial Property Solicitors – Forfeiture

Duncan Lewis has a successful commercial property and property litigation department able to advise on all commercial landlord and tenant matters, including disputes over breach of covenants – such as rent arrears – and forfeiture of a commercial lease.

Duncan Lewis is usually able to offer a Conditional Fee Agreement (CFA) or set fee for commercial property cases – and also offers a set fee for the initial assessment of a case, so our clients know exactly what they will be paying.

For expert legal advice on Forfeiture of a Commercial Lease, call Duncan Lewis Commercial Property Solicitors on 020 7923 4020.