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The Pros And Cons Of Forfeiture

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Forfeiture
Forfeiture is the termination of the lease
If a tenant breaches a covenant under the tenancy the landlord may have the right to re-enter the property to end the tenancy. This is known as forfeiture. The landlord can only forfeit a tenancy if such a right for breach of particular terms of the tenancy and is expressly stated in the tenancy.
When forfeiting a tenancy, the landlord can either issue proceedings for recovery of possession or peacefully re-enter the premises. Usually, the first method will be used, as the landlord does not want to run the risk of any claim of violent re-entry.
It is possible for a landlord to waive their right of forfeiture. This will occur if the landlord, knowing of the breach, performs an act that recognises …show more content…

The reason for this is that the act of demanding rent recognises that the tenancy is continuing even after the breach has occurred. However, if the breach itself then continues, the right to forfeit, though waived on one occasion, will arise again.
Landlords should always get legal advice on their options in taking forfeiture action because it carries significant risks. For example, if not done properly, forfeiture can expose a landlord to a significant damages claim by the …show more content…

This legal procedure replaced the landlord 's common law remedy of distress in April 2014. The landlord still has a right to enter the premises that have been let to the tenant to seize their property, but the procedure for dong this has changed.
The landlord must instruct an enforcement agent to carry out the recovery once a minimum of 7 days ' 'net rent ' remains unpaid. The net rent means the actual rent less any VAT, interest and payments the tenant can set-off against the rent. It doesn 't include payments such as insurance premiums and service charges even if the lease says they are included as part of the 'rent '.
The enforcement agent must then give the tenant 7 'clear days ' notice of their intention to take control of the tenant 's property to the value of the rent arrears and any VAT, interest and costs. Clear days don 't include Sundays and Bank holidays.
After this, and so long as the minimum rent remains unpaid, the enforcement agent can take control of the tenant 's property. This can be done by securing the goods on the premises, entering into a written agreement with the tenant not to remove the goods from the premises or removing

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