Forfeiture clause
Confirm that the lease contains an enforceable right of re-entry covering the particular default and that any contractual grace period has expired.
Commercial lease legal guide
Relief from Forfeiture: What Commercial Landlords and Tenants Need to Know
Forfeiture can bring a commercial lease to an end, but it may not be the final word. A tenant, undertenant or other interested party may ask the court to reverse its effect, subject to the breach, delay, conduct and conditions imposed.
Urgency matters.
A tenant seeking relief should obtain specialist legal advice immediately. A landlord should preserve evidence and avoid conduct that may waive the right to forfeit before the lease is ended.
The legal remedy
What is relief from forfeiture?
Relief from forfeiture is the court’s power to restore a lease after the landlord has exercised, or is seeking to exercise, a contractual right of re-entry or forfeiture.
If relief is granted, the lease will generally continue on the terms directed by the court. The tenant may be required to remedy the breach, pay arrears, interest and costs, comply with conditions or give undertakings.
Relief is discretionary. It is not guaranteed merely because the breach can be remedied, and a valid forfeiture does not prevent an application. The court examines the purpose of the forfeiture clause, the parties’ conduct, the seriousness and remedy of the breach, delay and prejudice.
Before the lease is ended
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Five checks before a landlord forfeits
Relief becomes relevant only after a right to forfeit has arisen and the landlord has elected to enforce it. Errors before re-entry can make the forfeiture itself challengeable.
Right has arisen
Check the arrears, covenant, notice, remedy period and evidence. A suspected breach is not enough.
Section 146
For a breach other than non-payment of rent, establish whether a compliant section 146 notice has been served and its requirements satisfied.
No waiver
Acceptance or demand of rent and other conduct recognising the lease may waive a known right to forfeit. Obtain advice before taking inconsistent action.
Occupation and insolvency
Check for residential occupation, mixed use, administration, liquidation or another restriction requiring consent or a different route.
Method and evidence
Choose between peaceable re-entry and proceedings, then prepare attendance, locksmith, notices, inventory, photographs and a full contemporaneous report.
Residential boundary:
peaceable re-entry must not be used to remove a residential occupier. Mixed-use premises and any suggestion that somebody lives at the property require specific legal review before attendance.
The breach changes the route
Rent arrears and other covenant breaches
| Ground | Position before forfeiture | Typical relief considerations |
|---|---|---|
| Non-payment of rent | Section 146 notice is not normally required for non-payment of rent. The lease clause, rent due, grace period, waiver and any insolvency restriction still require checking. | Payment of arrears, interest and costs is usually central. The court will consider the applicable statutory or equitable route and the parties’ conduct. |
| Remediable covenant breach | Section 146 generally requires a notice specifying the breach, requiring remedy where capable of remedy and requiring monetary compensation. The tenant must then fail to comply within a reasonable time. | Whether the breach has been fully remedied, compensation and costs paid, undertakings offered and future recurrence controlled. |
| Allegedly irremediable breach | A section 146 notice is still generally required, although it need not demand an impossible remedy. Whether a breach is truly irremediable is a legal question. | Seriousness, conduct, the purpose of the covenant, continuing prejudice and whether relief can be made workable through conditions. |
| Insolvency event | The lease wording and insolvency regime must be considered. A moratorium, administration or liquidation may prevent or condition enforcement. | The court or office-holder’s role, statutory restrictions, value of the lease and the interests of creditors may become material. |
Application and timing
What the court will consider
The tenant should act immediately. Delay can damage an otherwise arguable application and may allow third-party interests or irreversible prejudice to develop.
Identify the route
Determine whether forfeiture followed peaceable re-entry or court proceedings and whether it concerns rent or another breach.
Remedy the default
Pay or tender arrears and costs where appropriate, remedy the covenant breach and gather proof of compliance.
Issue promptly
Obtain advice, prepare evidence and make the application without treating a possible long-stop as permission to wait.
Address conditions
Show how the landlord can be protected through payment, undertakings, security, costs or other workable terms.
There is no safe universal “six months from forfeiture” rule.
Section 138 of the County Courts Act 1984 contains a six-month application period where possession has been recovered after an order made in county-court proceedings for non-payment of rent. Other routes, including equitable relief after peaceable re-entry and section 146 applications for non-rent breaches, must be analysed separately. Prompt action is essential.
After re-entry or proceedings
How a landlord should respond
A landlord should neither assume that relief will be granted nor act as though an application is impossible.
- Preserve the lease, rent account, notices, service evidence, photographs, attendance report and communications.
- Record the precise date and method by which possession was recovered.
- Refer any request for keys, access or reinstatement to the instructed solicitor.
- Avoid accepting money or making representations without understanding their legal effect.
- Take advice before reletting, altering or disposing of goods where relief has been threatened or proceedings issued.
- Quantify arrears, interest, repair, security, enforcement and legal costs accurately.
- Consider whether properly secured conditions could resolve the matter commercially.
Common questions
Relief from forfeiture FAQs
Does relief automatically reinstate the commercial lease?
No. Relief is a court remedy. If granted, the court determines its effect and may impose conditions concerning arrears, remedy, costs, compensation, security, undertakings or future compliance.
Is a section 146 notice required for rent arrears?
Section 146 does not generally apply to forfeiture for non-payment of rent. The landlord must still establish the lease-based right to forfeit, the amount due, expiry of any grace period, absence of waiver and compliance with any insolvency or occupation restrictions.
Can a tenant obtain relief after peaceable re-entry?
Potentially, yes. A valid peaceable re-entry does not by itself prevent the tenant seeking equitable or statutory relief. The correct jurisdiction, breach and timing require specialist advice.
Does the tenant always have six months to apply?
No. The six-month provision in section 138(9A) concerns possession recovered after an order in county-court proceedings for non-payment of rent. It should not be treated as a universal deadline for every forfeiture. Applications should be pursued immediately.
Can an undertenant apply for protection?
Section 146(4) allows the court, in relevant circumstances, to make an order protecting an undertenant’s interest on conditions. The result is fact-sensitive and may not simply restore the original superior lease.
Can UK Bailiffs decide whether relief should be granted?
No. Relief is determined by the court. UK Bailiffs can review an operational forfeiture instruction, carry out authorised peaceable re-entry and provide a detailed attendance record. Contested legal issues should be referred to the client’s solicitor.
Primary legal sources
Check the applicable route
The lease, breach, method of forfeiture and procedural history determine which relief jurisdiction and deadlines apply.
Reviewed 12 September 2026. General information only. It is not legal advice and does not determine the prospects or deadline of a particular relief application.
Planning a commercial lease forfeiture?
Send the lease and current rent or breach information so the proposed operational route can be reviewed.
