Q&As

Is a landlord able to forfeit a lease (provided that it does not waive the right to forfeit—by demanding rent or otherwise—between the right arising and the lease being forfeited) where: the tenant has been in arrears of rent for some time, the landlord has previously attempted recovery through commercial rent arrears recovery, the tenant arranged a payment plan with the bailiff of monthly instalments and the instalment immediately preceding the latest rent payment date was missed, as was the rental payment itself?

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Last updated on 23/10/2019

The following Property Disputes Q&A provides comprehensive and up to date legal information covering:

  • Is a landlord able to forfeit a lease (provided that it does not waive the right to forfeit—by demanding rent or otherwise—between the right arising and the lease being forfeited) where: the tenant has been in arrears of rent for some time, the landlord has previously attempted recovery through commercial rent arrears recovery, the tenant arranged a payment plan with the bailiff of monthly instalments and the instalment immediately preceding the latest rent payment date was missed, as was the rental payment itself?

Is a landlord able to forfeit a lease (provided that it does not waive the right to forfeit—by demanding rent or otherwise—between the right arising and the lease being forfeited) where: the tenant has been in arrears of rent for some time, the landlord has previously attempted recovery through commercial rent arrears recovery, the tenant arranged a payment plan with the bailiff of monthly instalments and the instalment immediately preceding the latest rent payment date was missed, as was the rental payment itself?

Forfeiture of the lease is perhaps the most draconian step to take albeit a remedy to which the landlord is entitled. It might not be in the landlord’s interest to forfeit the lease: there may be a guarantor of sufficient substance who can meet the liability in circumstances where there is no guarantee of re-letting the property in the immediate future.

In the present case however, the landlord has tried commercial rent arrears recovery (CRAR) which resulted in a payment plan being agreed with the bailiff. The tenant has missed one of the payments under the agreed instalment plan and also a further instalment of rent which has fallen due. The landlord has decided therefore to exercise the right to forfeit the lease.

The question states that it

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Key definition:
Arrears definition
What does Arrears mean?

Sums reserved in a lease which a tenant fails to pay on the due date. A right to forfeit may be reserved in a lease once sums have been outstanding for a specified period of time.

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