What is ...

Lease Forfeiture ?

Our Certificated Enforcement Agents (Bailiffs) will attend your commercial rental property and end the lease by peaceful entry

Below we explain briefly what it is and how it can help your business.


What is Lease Forfeiture UK Bailiffs

Commercial Lease Forfeiture.


A lease forfeiture is a process by which a landlord can terminate a lease before its natural expiration, in the event of some default by the tenant.

The right to forfeit must be conferred expressly by a clause in the lease, and the landlord must follow certain steps before exercising it. 

The grounds for forfeiture may vary depending on the type of lease and the nature of the breach. Some common examples are:

Non-payment of rent or other charges, such as service charges or administration charges. .

Breach of repairing obligations or other covenants in the lease.  The landlord must serve a notice of forfeiture under section 146 of the Law of Property Act 1925, which informs the tenant of the breach and gives them a reasonable time to remedy it. The landlord may also need to comply with section 168 of the Commonhold and Leasehold Reform Act 2002, which requires either the tenant’s admission or a court or tribunal determination that a breach has occurred..

Specific circumstances that are expressly stated in the lease, such as the tenant’s insolvency, death, or abandonment of the property. The landlord must check the terms of the lease carefully and follow any procedures that are specified.

The tenant may be able to apply for relief from forfeiture, which means the lease is restored.

Commercial Lease Forfeiture FAQs

  • What is Commercial Forfeiture?

    Forfeiture is a landlord’s right to determine a lease when the tenant is in breach of the terms or when certain events happen as set out in the lease – e.g. the tenant has not paid rent or the tenant becomes insolvent

  • Under what circumstances can I forfeit a lease?

    The lease must expressly give the landlord the right to forfeit. 


    There are some circumstances in which a right to forfeit can be implied into the lease, but in most leases there will be a specific clause. 


    This clause will  give the landlord the right to forfeit once the tenant has been in breach for a period of time – typically 14 days

  • Under what circumstances can CRAR be used?

    It may only be used on commercial premises and there must be a written lease in place. (If the premises are mixed use or residential use, you will need to obtain a judgment to recover arrears)

    CRAR may only be used to recover rent, interest and VAT. ( If you need to recover other charges such as insurance or service charges, we can help separately).

    The rent must be at least seven days in arrears and the rent owed must be for the value of at least 7 days’ rent.

    The Enforcement Agent (Bailiff) must give the tenant at least 7 days’ notice (excluding Sundays and bank holidays) that he is exercising his right to use CRAR. 

    The rent must still be unpaid at the time the notice is served, as well as immediately before any goods are seized.

    The notice must be served, either by post, hand, fax and electronic communications such as email. Notice will be valid for 12 months. 

  • When can I forfeit a lease?

    Where the right to forfeit has arisen,you must be careful not to do anything to waive that right. 



    Waiver occurs when the landlord:


    Knows of a breach in the lease

    Does something that recognises that the lease continues to exist

    Communicates that act to the tenant.


    Effectively, you must decide: 


    do you forfeit as soon as you're aware  of the breach, or do you treat the lease as continuing and therefore waive the right to forfeit? 

    For example, a landlord cannot say that a lease has come to an end, if he does something that could only be done if the lease continued to exist. For example, demand or accept rent.

  • Are you required to give them notice?

    Previous regulations (Distress for Rent) provided the element of surprise. With no prior notice, the bailiff could turn up and seize your tenants goods. 



    By contrast, under the new regulations of CRAR, we must give the tenant at least 7 clear days notice in writing.



    We send the letter out on the day we take instruction from you.

  • Do I need to issue a Section 146 notice?

    If the breach is non payment of rent then usually no. 

  • Do I need to make an application to Court to forfeit?

    The common law remedy for landlord right of forfeiture is a very quick and effective solution without the need of making an application to a court.

  • What is the process?

    On completion of our online Forfeiture instruction,  we will promptly and peaceably enter the premises, change the locks and display the correct notices of forfeiture and torts if applicable

  • What happens to the tenants goods?

    Under torts (interference with goods) Act 1977 we are obliged to give notice to the tenant (usually 14 days) in which he can collect his goods at a time convenient to you.


    Alternatively, we can arrange for an Agent to attend to supervise the access.

  • What if the tenant breaks in after you have changed the locks?

    It is a criminal offence for the tenant to break into your property. The Police can take criminal action against them.



    If you are concerned, we can arrange extra security measures to be put into place. Just phone us for details.

  • How much do you charge?

    Our rates start from £235 which includes drafting of legal notice and torts.


    Please call us on 0330 133 1818 to find out more

Contact A Recovery Specialist

Commercial Rent Arrears Recovery (CRAR) Section 73 Tribunal Courts and Enforcement Act 2007