Qualifying commercial lease
The landlord must have a qualifying lease of commercial premises and the statutory commercial-premises test must be satisfied.
Commercial landlord decision guide · England and Wales
CRAR or Lease Forfeiture: Which Route Should a Commercial Landlord Use?
The first question is not “which remedy is stronger?” It is what outcome the landlord actually wants. CRAR is designed to recover qualifying commercial rent while the lease continues. Forfeiture is designed to recover possession where a valid and unwaived right to forfeit has arisen.
CRAR keeps the lease alive
The landlord is enforcing payment while treating the tenancy as continuing.
Forfeiture seeks possession
The landlord is seeking to determine the lease and recover the premises.
Waiver matters
Conduct that recognises the lease as continuing can affect an existing right to forfeit.
Direct answer
Decide first whether you want the rent or the premises
Choose CRAR where recovering qualifying commercial rent is the objective and the landlord intends to treat the lease as continuing.
Consider lease forfeiture where recovering possession is the objective and the lease gives the landlord a presently exercisable right to forfeit.
Important:
the choice should normally be made before enforcement action begins. Exercising CRAR can amount to recognising that the lease continues and can therefore waive an existing right to forfeit for the relevant breach.
Recover the rent
Use CRAR when payment is the objective
Commercial Rent Arrears Recovery allows a landlord of qualifying commercial premises to recover qualifying rent using the statutory taking-control-of-goods procedure without first obtaining judgment for that rent.
The lease continues. If payment is not made after the statutory Notice of Enforcement, a certificated enforcement agent may attend and take control of qualifying goods.
View the CRAR service →Recover the premises
Consider forfeiture when possession is the objective
Lease forfeiture seeks to determine the commercial lease and recover possession where the landlord has a valid right of re-entry or forfeiture that has arisen and remains available.
In suitable circumstances this may be exercised through peaceable re-entry. Lease wording, breach, waiver, occupation, insolvency and notice requirements must be checked first.
View the lease forfeiture service →Side-by-side comparison
CRAR vs lease forfeiture at a glance
The same rent arrears can raise both remedies, but the legal effect and commercial objective are very different.
| Question | CRAR | Lease forfeiture |
|---|---|---|
| Main objective | Recover qualifying commercial rent. | Recover possession of the premises. |
| What happens to the lease? | The landlord treats the lease as continuing. | The landlord seeks to determine the lease, subject to possible relief from forfeiture. |
| Court order required first? | Not normally, where the statutory CRAR requirements are satisfied. | Not necessarily. Peaceable re-entry may be available in a suitable commercial case. |
| What debt can be recovered? | Qualifying commercial rent as defined by the CRAR legislation. | Forfeiture is a possession remedy rather than a debt-recovery mechanism. |
| Service charge or insurance? | Outside CRAR even if labelled “rent” in the lease. | May form part of a non-rent breach analysis, potentially engaging Section 146. |
| Tenant normally remains? | Yes. The objective is rent recovery. | No. The objective is recovery of possession. |
| Key risk | Using CRAR may waive an existing right to forfeit. | Wrongful forfeiture can expose the landlord to challenge, relief proceedings or damages. |
When CRAR fits
CRAR has specific statutory eligibility requirements
It is not a general mechanism for collecting every sum due under a commercial lease.
Qualifying rent only
CRAR applies to rent for possession and use of the premises. Service charges, insurance and other ancillary sums are excluded.
Minimum arrears
The net unpaid rent must be at least the statutory minimum equivalent to seven days' rent at the relevant calculation points.
From 1 May 2026, the general minimum Notice of Enforcement period is 14 clear days
before goods may ordinarily be taken into control. See the 2026 Taking Control of Goods changes
.
When forfeiture fits
The landlord must have a valid right to forfeit
Rent arrears alone do not make every commercial lease suitable for immediate peaceable re-entry.
1
Check the lease
The lease should contain an applicable forfeiture or right-of-re-entry provision and the contractual trigger must have occurred.
2
Identify the breach
Non-payment of rent and breaches of other lease covenants should not automatically be treated in the same way.
3
Check for waiver
The landlord's conduct after learning of the breach should be reviewed before forfeiture is attempted.
4
Check occupation
Residential, mixed or disputed occupation can materially affect whether peaceable re-entry is lawful or appropriate.
5
Check notice requirements
Section 146 generally applies to many breaches other than non-payment of rent and may need to be satisfied before forfeiture.
Critical decision point
Can using CRAR affect the right to forfeit?
Yes. Where a right to forfeit has already arisen, exercising CRAR is capable of amounting to an election to treat the lease as continuing.
The Court of Appeal confirmed in Brar v Thirunavukkrasu [2019] EWCA Civ 2032 that exercising CRAR waived the landlord's existing right to forfeit in the circumstances of that case.
Demanding or accepting rent after knowledge of a breach may also raise waiver issues. The precise effect depends on the breach and the landlord's conduct.
Practical point: if recovering possession may be the preferred outcome, consider forfeiture rights before instructing CRAR or taking another step that recognises the lease as continuing.
Other issues that can change the route
Not every commercial arrears case is simply CRAR or forfeiture
Service charges, insolvency, subtenants and non-rent breaches can each alter the available enforcement route.
Service-charge arrears
Service charges and other ancillary lease sums fall outside CRAR and may need a contractual, pre-action or court-based route.
Tenant insolvency
Administration, liquidation, moratoriums or bankruptcy can restrict whether CRAR or forfeiture can start or continue.
Subtenant in occupation
Where CRAR is available against the immediate tenant, Section 81 may provide a separate rent-redirection route against a subtenant.
Non-rent breaches
Where does a Section 146 notice fit?
Section 146 is a separate part of the commercial lease enforcement decision and is commonly relevant where the breach is something other than non-payment of rent.
For many breaches of covenant other than non-payment of rent, section 146 of the Law of Property Act 1925 prevents enforcement of a right of re-entry or forfeiture until the landlord has served a notice specifying the breach.
Where the breach is capable of remedy, the notice must require it to be remedied. The legislation also addresses compensation and requires a reasonable period to be allowed before the right is enforced.
Serving the notice does not itself forfeit the lease.
Before choosing a remedy
Five questions for a commercial landlord
These questions usually identify whether the case is mainly about payment, possession or another lease breach.
1
Do you want the tenant to remain?
If yes, and qualifying rent is owed, CRAR may be relevant. If no, consider whether a valid right to forfeit has arisen.
2
Is the debt qualifying commercial rent?
Separate rent from service charge, insurance, rates and other lease liabilities before deciding whether CRAR is available.
3
Is the property suitable for CRAR?
Check the lease and actual occupation. Residential or mixed use can materially change the position.
4
Has a right to forfeit already arisen?
If so, consider waiver before demanding or accepting rent, exercising CRAR or otherwise treating the lease as continuing.
5
Is the breach something other than rent arrears?
If so, Section 146 and other lease-specific requirements may need to be addressed before forfeiture is considered.
Commercial landlord questions
CRAR and forfeiture FAQs
Should I use CRAR or forfeiture for commercial rent arrears?
Start with the intended outcome. CRAR is primarily a rent-recovery remedy and treats the lease as continuing. Forfeiture is a possession remedy and seeks to determine the lease where a valid right to forfeit exists.
Can I use CRAR and then forfeit the lease?
Care is required. Exercising CRAR after a right to forfeit has already arisen can waive that existing right because CRAR treats the lease as continuing. Consider the intended remedy before CRAR is exercised.
Does CRAR require a court order?
Not normally. CRAR is a statutory enforcement procedure that can be exercised without first obtaining a court judgment for qualifying rent, provided the statutory requirements are satisfied.
Can CRAR recover service charges and insurance?
No, not merely because the lease labels those sums as rent. Service charges, insurance and other ancillary amounts fall outside the statutory CRAR definition of rent. See our service-charge arrears guidance
.
How much commercial rent must be unpaid before CRAR can be used?
The statutory minimum net unpaid rent is equivalent to seven days' rent. That threshold must be satisfied at the relevant calculation points.
How much notice must be given before a CRAR enforcement visit?
From 1 May 2026 the general minimum Notice of Enforcement period is fourteen clear days, subject to the applicable calculation and extension rules.
Can a commercial landlord forfeit a lease without a court order?
Potentially, in suitable circumstances through peaceable re-entry. The lease, breach, right of re-entry, waiver, occupation and any statutory notice requirements must be checked before action.
Is a Section 146 notice needed for unpaid rent?
Section 146 does not generally govern forfeiture for non-payment of rent in the same way as other covenant breaches. The lease terms and circumstances must still be checked carefully.
Can a tenant apply for relief from forfeiture?
Yes. A tenant or other qualifying party may in appropriate circumstances ask the court for relief from forfeiture. See our Relief from Forfeiture guide
.
Primary legal sources
Legislation and official guidance
Tribunals, Courts and Enforcement Act 2007 — CRAR
Commercial Rent Arrears Recovery provisions
Taking Control of Goods Regulations 2013
Notice and enforcement procedure
Taking Control of Goods (Miscellaneous Amendments) Regulations 2026
2026 notice and procedural amendments
Law of Property Act 1925 — Section 146
Restrictions on forfeiture for relevant breaches
HM Land Registry Practice Guide 26
Determination of leases
Brar v Thirunavukkrasu [2019] EWCA Civ 2032
Court of Appeal decision on CRAR and waiver
CW
Operational review
Reviewed by Craig Whinray
Craig Whinray is Director of UK Bailiff Services Ltd and a Certificated Enforcement Agent with more than 20 years' frontline enforcement experience.
This decision guide is informed by UK Bailiffs' commercial rent and possession work and the primary sources referenced above. It does not replace legal advice where waiver, insolvency, lease construction, occupation or the right to forfeit is disputed or uncertain.
Editorial owner: UK Bailiff Services Ltd · Last reviewed 3 October 2026 · Review following material legal or operational change and at least annually.Unsure whether you need CRAR or forfeiture?
Send us the lease, current rent statement and basic occupation details. We can identify the operational route, highlight missing information and flag issues that need legal advice before attendance.
