Q&As

Is there any effect on the right to apply for relief from forfeiture of commercial premises: (a) where a subtenant wishes to apply for relief, but when the sublease was granted the subtenant company had not been incorporated. The company was later incorporated, (b) where a mortgagee wishes to apply for relief, but the charge was not registered?

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Produced in partnership with Chris Bryden of 4 King’s Bench Walk
Published on LexisPSL on 11/08/2020

The following Property Disputes Q&A produced in partnership with Chris Bryden of 4 King’s Bench Walk provides comprehensive and up to date legal information covering:

  • Is there any effect on the right to apply for relief from forfeiture of commercial premises: (a) where a subtenant wishes to apply for relief, but when the sublease was granted the subtenant company had not been incorporated. The company was later incorporated, (b) where a mortgagee wishes to apply for relief, but the charge was not registered?

For the purpose of this Q&A we have assumed that it is the headlease (rather than the sublease) that has been forfeited.

Forfeiture is often described as a Draconian remedy, allowing the landlord to exercise a contractual right (in the event that the lease gives such a right, as it invariably will) to bring the lease to an end if there has been a breach of its terms. For all breaches save rent arrears, it is necessary for the landlord to give to the tenant an opportunity to remedy the breach by serving a notice in compliance with section 146 of the Law of Property Act 1925 (LPA 1925). Section 138 of the County Courts Act 1984 makes various provisions in respect of applications for relief, including automatic relief if the arrears are paid off, provided that an application is made within six months. Forfeiture is effected either by peaceable re-entry, or by the service of court proceedings.

While ordinarily it is the lessee who applies for relief, mort

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