Understanding Possession Rights and the Importance of Your Lease Agreement
The key document when considering repossession of commercial property is the Lease. It sets out the contractual relationship between the Landlord and the Tenant. If there is no written Lease, you must first establish the legal basis of the occupation. This is essential before taking steps to recover possession.
What Is Forfeiture and Can a Landlord Change the Locks?
Commonly, leases of commercial premises will include a clause for “Peaceable Re-Entry” or “Forfeiture”. If your lease contains this clause, it may be possible to take back possession of commercial premises by changing the locks without a Court Order.
It’s always sensible to seek legal advice before taking such action. This helps reduce the risk of a Relief from Forfeiture application being made to the Court. The tenant has a 6-month period from the date of the Landlord taking possession in which to make such an application.
How Rent Arrears and Waiver Can Affect Forfeiture Rights
Typically, the rent must have been outstanding for a minimum of 21 days before a Landlord can utilise the forfeiture clause, although this depends on the specific wording of the Lease. A Landlord may also waive the right to forfeiture. This can happen if, for example, they send rent reminders or accept part-payment.
Can You Forfeit a Lease on Mixed-Use or Residential Premises?
One important point to note is that residential property cannot be recovered via forfeiture. If the premises are of mixed commercial and residential use, the Landlord will be unable to recover possession via forfeiture alone. For more on tenant protections, see Shelter’s guidance on eviction.
Are There Alternatives to Lease Forfeiture for Landlords?
Forfeiture of a lease is a dramatic measure, and not one to be taken lightly. Even when dealing with repossession of commercial property, there are often alternative legal routes available to the Landlord that may be more appropriate depending on the circumstances.
Are you looking to lease a commercial property?
Our Commercial and Business Lease experts are on hand to guide you and to ensuring your lease is adequate, and fit for purpose, and provides both the Landlord and Tenant with the security needed.
Using Section 146 Notices to Address Lease Breaches
If the tenant breaches the lease (other than failing to pay rent), the Landlord may serve a notice under Section 146 of the Law of Property Act 1925. This notice outlines the breach and gives the tenant a chance to remedy it. If the tenant fails to comply, the Landlord may apply to the County Court for forfeiture, potentially resulting in a possession order.
Recovering Rent Arrears: Commercial Landlord Options Explained
Where the breach relates to non-payment of rent, the Landlord may pursue:
- Commercial Rent Arrears Recovery (CRAR)
- Issuing legal proceedings for possession or arrears recovery
For more information, visit GOV.UK’s guidance on landlord responsibilities for commercial property.
Should Landlords Always Pursue Possession Proceedings?
Evicting a tenant can be both costly and risky, depending on the circumstances. In many cases, it is more appropriate to open dialogue with the tenant to resolve breaches without initiating formal possession proceedings.
Dealing with Tenants After Lease Expiry: The 1954 Act Explained
If the Lease term has ended and the tenant has failed to vacate, the Landlord must consider whether the tenancy is protected under the Landlord and Tenant Act 1954.
- If the Lease excludes protection, the tenancy ends with the Lease, and proceedings can be issued.
- If the Lease includes protection, the tenant enjoys security of tenure, and possession can only be regained on specific statutory grounds.
Speak to HSR Law About Recovering Possession of Your Commercial Property
If you’re dealing with a difficult tenant or need advice on taking back possession of a commercial or mixed-use property, HSR Law is here to help.
Our experienced property litigation team can guide you through your options and help you take the right steps—whether that involves negotiation, serving notices, or starting legal proceedings. We’ll work with you to find a practical and cost-effective solution tailored to your situation.
Get in touch today to speak with one of our solicitors and take the first step toward resolving your property issue.
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