Section 146 Notice

section 146(1) of the Law of Property Act

We are asked regularly about lease forfeitures for breaches in leases other than rent arrears.

Here we explain what is a Section 146 Notice

Section 146 of the Law of Property Act 1925 is a legal provision that allows a landlord to terminate a lease early if the tenant breaches certain terms or conditions of the lease.

The landlord must serve a notice to the tenant, called a section 146 notice, that specifies the breach and gives the tenant a chance to remedy it, if possible, and to pay compensation for any damage caused by the breach.

If the tenant fails to do so within a reasonable time, the landlord can take legal action to repossess the property and end the lease.

This applies to commercial leases, but there are some exceptions and limitations. For example, if the breach is only about non-payment of rent, the landlord does not need to serve a section 146 notice, but can directly approach a company like UK Bailiffs to terminate the lease immediately by peaceful entry.

It is only possible to issue such a notice if there is a right to forfeit the lease (often referred to as a landlords right of re-entry) written into the lease. The notice confirms that forfeiture proceedings will be brought because a covenant in the lease has been breached unless the breach is remedied (assuming the breach is capable of being remedied).

The types of covenant that are commonly breached include the following covenants:

to pay rent
to maintain and repair the property; or
not to keep pets at the property; or
not to sub-let the property without the landlord’s permission

The tenant can apply to the court for relief from forfeiture, and the court may grant it on certain terms and conditions, depending on the circumstances of each case.