Forfeiture is a right given to the landlord i.e. to bring a lease to an early end in the event of a breach of the leaseholder’s contractual obligations (‘covenants’) as set out in the lease.
If a tenant has breached the terms of a lease to such a degree, the landlord may act as though the lease has become void.
If exercised to its ultimate conclusion, the leaseholder and any interested parties (mortgage lenders, sub-tenants) lose any rights regarding the property without compensation and the landlord can gain a very valuable windfall.
Covering Topics
Overview
Checklist for Managing Agents
Waiver
Who Can Do It?
When Does the Right Arise?
Forfeiture for Non-Payment
Small Debts
Ground Rent
Service Charges/Insurance/ Administration Charges
Monies Reserved as Rent
Determining the Breach: Court or FTT?
Forfeiture for Other Breaches
Forfeiture: How It Works
Mesne Profits
Costs
Relief from Forfeiture
Leaseholders' Rights
Other Remedies
Further Information
Resource
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