Q&As
When a lease is forfeited and the legal interest of the legal owner is determined, is the beneficial interest of the beneficial owner also automatically determined? Is it sufficient to forfeit against the legal owner or must the landlord also forfeit against the beneficial owner?
Forfeiture is a mechanism whereby a landlord can determine the leasehold interest of a tenant prior to the expiration of the term. It requires a contractual right to re-enter the property in the event of a breach of a covenant contained in the lease (commonly, non-payment of rent) and there are various statutory provisions containing formal requirements in certain circumstances before a lease can be forfeit. Forfeiture can take effect either by peaceable re-entry (though this applies only to commercial premises and not residential: sections 1-3 of the Protection from Eviction Act 1977) or by the issuing of court proceedings. A tenant (and interested third parties)
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