At Commercial Rent Arrears Recovery London we are experienced professionals in the forfeiture of commercial leases in London. Many landlords of commercial properties in London are unaware of lease forfeiture and don’t know how it can be used to help them when faced with the all too common tenant issues of rent arrears and breach of covenant.

CRAR London provide a professional lease forfeiture service and all landlords should be aware of lease forfeiture and how it can benefit them. So let’s take a closer look at how lease forfeiture works?

In the simplest terms lease forfeiture is the name for the termination of a tenancy before the agreed lease expires. Our CRAR London lease forfeiture service can help you get back control of your commercial property quickly with the termination of a tenant’s lease.

The most common reason many landlords use a lease forfeiture service is for rent arrears, however this is far from the only reason to call upon our CRAR London lease forfeiture service. A tenant’s contract can be broken in many ways; they may pay their rent on time but they could have made unapproved alterations or renovations to the property for example. Indeed, another factor seen more frequently in recent times is that they engage in disruptive or even illegal behavior.

It is important to note that if the issue is anything other than rent arrears, before the landlord takes steps to forfeit either by applying to the courts or by peaceable re-entry he must serve a statutory notice under section 146 of the Law of Property Act 1925. CRAR London can prepare and serve this notice as part of the lease forfeiture service

How Does Lease Forfeiture Work?

Most modern commercial leases will have an express clause giving the landlord the right to forfeit in the event of an irrevocable breach of the terms, or rent arrears accruing. Like anything in the legal world, commercial lease law can be complex, however with regards to lease forfeiture, put simply are two ways to proceed.

You can either take the tenant to court or opt for peaceable re-entry. Whichever method you decide the tenant does have the right to apply for relief from the forfeiture. Although even in the event the tenant was to be granted relief they would still in all likelihood have to pay the outstanding rent and court costs.

Peaceable re-entry is therefore usually the preferred method. If the procedure is followed correctly, peaceful re-entry can avoid potentially long and drawn-out court battles with all the incumbent costs involved. Under peaceful re-entry (as the name suggests) force cannot be used against persons to gain entry into the property.

If for no other reasons, the services of professional agents such as CRAR London should be used for this procedure.
As part of our CRAR London lease forfeiture service we will send certificated enforcement agents to conduct the repossession for you. Once entry has been gained, the locks changed and the required notices displayed an inventory will be taken. A report of the re-entry and the condition of the building will be forwarded upon completion.

The Benefits of Lease Forfeiture for Landlords

While no landlord is likely to want to ever use lease forfeiture it’s a valuable tool that can be used if you ever have a non paying or disruptive troublesome tenant in your commercial property. Whether it’s due to rent arrears or the increasing phenomenon of the tenant simply absconding, with our lease forfeiture service in London you can get access to your commercial property quickly and cost effectively.

This means you can start re-letting your property again and prevent a substantial loss of income. Plus, under lease forfeiture any fixtures installed by the tenant will revert to the possession of you the landlord, this could prove to be very profitable. At the very least offset the costs of the process. Fixtures include a wide range of things including: fixed industrial machinery, heating systems, and much more.

This aspect of Lease forfeiture is established in case law and an important legal principle that any commercial property landlord should bear in mind when considering their options under CRAR. With our lease forfeiture service in London any commercial landlord can get all the professional assistance they need.

Disclaimer: Nothing in this article constitutes formal legal advice. If formal legal advice is required, it is recommended the reader consults a solicitor or legal advice centre.