Forfeiture is the ability of the landlord to end a lease in the event that the tenant breaches a term of the lease or where another specified event takes place. There must be a valid forfeiture clause in the lease. This clause will specify when the landlord can forfeit the lease. If the lease does not include a specific forfeiture clause, the landlord will not be able to forfeit.
If there is a valid forfeiture clause in the lease, the landlord will be able to forfeit the lease in accordance with that clause. This will usually be where the tenant is in breach of another clause of the lease (e.g. has failed to repair in accordance with the lease), if specified events occur (e.g. on the tenant’s insolvency), or on non-payment of rent or other charges under the lease.
The landlord can forfeit the lease for a tenant's breach of covenant, if permitted by the lease. There are two methods of forfeiture:
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By court proceedings
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By peaceable re-entry
The forfeiture clause within the lease will set out at what point the landlord can forfeit for non-payment of rent. This is typically where the rent has been outstanding for 14 or 21 days. For example, if the forfeiture clause allows the landlord to forfeit the lease if the rent is overdue by 21 days, on the 22nd day, the landlord can forfeit the lease. On the 22nd day, the landlord has the option to either forfeit the lease or not. He must decide whether to treat the lease as continuing, or that it has come to an end and that he will be forfeiting the lease. If the landlord decides to forfeiture the lease the landlord has the sole discretion to either issue court proceedings, or ‘peaceably re-enter’ the property. This means to go in and change the locks.
The landlord must serve a notice of forfeiture on the tenant before it forfeits the lease for breach of covenant. The notice of forfeiture should be attached to the premises after a landlord has effected peaceable re-entry. The notice should be in a place where it will be visible, such as the door or the window.
This Notice of Forfeiture shall be used when a landlord forfeits a lease by peaceable re-entry.
Please note: Peaceable re-entry should not be used as a method of forfeiture of a lease of residential premises.
Where the lease has been forfeited, but the tenant is able to remedy the breach by paying rent that is owed, he may be entitled to relief from forfeiture. The idea is to put the landlord and tenant back into the position they would have been in had forfeiture not taken place.
Where the landlord has issued forfeiture proceedings in the County Court, the tenant has a right to automatic relief from forfeiture if he pays all arrears, interest and costs into court not less than 5 clear days before the first hearing. On this payment, the landlord’s claim ceases, and the lease is reinstated as if it were never forfeit. If the tenant does not obtain relief in this way, he has various opportunities to apply for relief later. The final opportunity being up to 6 months after the landlord has recovered possession.
If the landlord has forfeited by peaceable re-entry, the tenant may apply to the County Court for relief from forfeiture within 6 months of the re-entry. The Court will consider the application and will make an order for relief if it sees fit. The Court will ensure that payment of the rent arrears is a condition of the granting of relief from forfeiture. It will typically also require the tenant to pay the landlord’s costs.
This Notice of Forfeiture by Peaceable Re-entry is in Microsoft Word format, written in plain English, easy to use and edit.
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