Q&As

Where a lease which was held on trust is forfeited, can the beneficiaries seek relief from forfeiture and if so, on what basis? If the beneficiaries make payment of any arrears would the beneficiaries, or the tenant (who is a trustee) be entitled to relief pursuant to section 138 County Courts Act 1984? Would the position change if the tenant/trustee is declared bankrupt after the lease is forfeited?

read titleRead full title
Produced in partnership with Alex Campbell of Field Court Chambers
Published on LexisPSL on 04/06/2018

The following Property Disputes Q&A produced in partnership with Alex Campbell of Field Court Chambers provides comprehensive and up to date legal information covering:

  • Where a lease which was held on trust is forfeited, can the beneficiaries seek relief from forfeiture and if so, on what basis? If the beneficiaries make payment of any arrears would the beneficiaries, or the tenant (who is a trustee) be entitled to relief pursuant to section 138 County Courts Act 1984? Would the position change if the tenant/trustee is declared bankrupt after the lease is forfeited?
  • Relief from forfeiture
  • Who may apply for relief from forfeiture
  • Effect of bankruptcy of the trustee

Relief from forfeiture

Section 138 of the County Courts Acts (CCA 1984) makes provision for a lessee to avoid possession of property being ordered in favour of the lessor by way of forfeiture. It provides in CCA 1984, s 138(2) that if the lessee pays into court or to the lessor all outstanding arrears and the lessor’s costs not less than five days before the matter is listed for hearing in court, the lessor’s possession claim shall cease and the lessee shall be entitled to remain in possession of the land.

If the claim does not cease by that mechanism, CCA 1984, s 138(3) provides that, when making a possession order, the court must stipulate that possession need not be given to the lessor if within a specified period (being not less than four weeks) the lessee pays the outstanding arrears plus the lessor’s costs.

Furthermore, CCA 1984, s 138(9A) provides that the lessee may, within six months of the lessor recovering possession of the land, apply to court for relief from forfeiture on such terms as the court thinks fit.

Who may apply for relief from forfeiture

On its

Related documents:

Popular documents