Claiming relief from forfeiture when breach is rent arrears
Claiming relief from forfeiture when breach is rent arrears

The following Property Disputes practice note provides comprehensive and up to date legal information covering:

  • Claiming relief from forfeiture when breach is rent arrears
  • Jurisdiction to grant relief in respect of breaches of covenant for non-payment of rent
  • Relief against forfeiture for non-payment of rent in the county court
  • Relief against forfeiture for non-payment of rent in the High Court
  • Factors to be taken into account by the court
  • Applications for relief by subtenants and mortgagees
  • Is a court order necessary to agree relief from forfeiture?

Coronavirus (COVID-19): During the current pandemic, legislation and changes to practice and procedure in the courts and tribunals have been introduced, which affect the following:

  1. proceedings for possession

  2. forfeiture of business leases on the grounds of non-payment of rent

  3. a landlord's right to exercise Commercial Rent Arrears Recovery (CRAR) and enforcement agents taking control of goods

  4. service of various notices to recover possession of residential properties

  5. practice and procedure in the First-tier Tribunal (Property Chamber) and Upper Tribunal (Lands Chamber)

  6. insolvency legislation of both a permanent and temporary nature

For further information and guidance, see: Coronavirus (COVID-19)—implications for property.

The process for claiming relief from forfeiture when the breach is rent arrears varies depending on the nature of the breach. For information in respect of claiming relief for any breach other than rent arrears, see Practice Note: Claiming relief from forfeiture for any breach other than rent arrears.

If a landlord intends to forfeit due to rent arrears, he does not need to serve a notice under section 146 of the Law of Property Act 1925 (LPA 1925) prior to forfeiture.

In these circumstances, a relief from forfeiture application is usually made by:

  1. counterclaiming in the landlord’s action for forfeiture

  2. separate claim brought by the tenant

If, instead, the tenant applies to set aside the order for possession pursuant to CPR 39.3, obtaining relief from forfeiture constitutes ‘success’

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