What is Forfeiture?
When there has been a breach of the terms of a lease, the lease can be terminated and the landlord can re-enter the property. This issue could come up if the leaseholder breaches the terms of the lease, such as not paying rent or failing to maintain the property. The forfeiture can take place with immediate effect.
How to Forfeit a Lease
Firstly the landlord has to demonstrate the grounds of their right to forfeiture of lease. A popular way to do this is to find a particular clause in the lease that bestows the landlord the right to forfeit. Make sure that the clause you choose covers the breach in question, and all preconditions of the right have been stuck to. To commence with the forfeit of lease the landlord must serve a statutory notice procedure on the tenant, giving them time to make good the breach in question, if this is possible.
Things to Consider
The first thought could be on how the landlord will regain control of the property. Re-entry into the building is one way but the landlord must take care that it is by peaceable re-entry but it may not be as simple as just changing the locks when the building is empty as if the property is occupied by this may bring its own issues. After a re-entry the landlord has to take responsibility for any goods and property that have been left in the building must be kept safe, to stop any claim from the tenant for damaged goods.
What Are The Requirements and Who Can Use CRAR?
Usually, only commercial premises landlords with the tenant remaining in occupation who has a lease in writing can use CRAR. Net unpaid rent equal to 7 days rent must be owed before any action can be taken.
Seven clear days notice of enforcement must be served; however, it might be plausible to ask the court for permission to reduce the notice period when a risk of tenants removing goods is a probable event.
Another method is to issue court proceedings for forfeiture. The benefits to this method are that it takes out the problems associated with re-taking possession.
It should also be understood that that a tenant has the right to apply for relief from forfeiture. So, even if the landlord's right to forfeit can be determined, and the statutory procedure is ensured, a tenant may still be allowed to stay in the property.
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In Closing
The right of forfeiture can be complicated but landlords can get through the issues by obtaining legal advice at the early stages of the right to forfeit. Give us a call at Security Companies UK on 0800 061 4417 for more advice and information.