What can I do if my landlord want to forfeit my commercial lease?

What are my options if my landlord wants to forfeit my lease?

If you are a tenant with a lease on a commercial property and your landlord is trying to remove you from your lease early, then Relief from Forfeiture could provide a useful legal tool to attempt to continue your lease, stay in your premises, and overturn the planned forfeiture. 

But what is Relief from Forfeiture, what are your rights, what are your landlord’s rights and what are your options moving forward?

What is Relief from Forfeiture?

If you, as a tenant, have breached the terms of your lease, through either the non-payment of rent or by breaching any of its other covenants, then your landlord can seek to end the lease by re-entering the property. This is a legal process and the right of your landlord to do this will be included in most standard commercial leases.

However you, as the tenant, have the right to petition the courts and request Relief from Forfeiture which would overrule the rights of your landlord to end your lease. The court has the discretion to either grant or withhold Relief From Forfeiture.

In general if the court believes that you have taken the necessary steps to remedy the breach then it will find in favour of the tenant, however this can sometimes be a complex area of law and we would recommend taking professional advice about your rights and options in these cases.

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Chelsea Williams
Business Debt Expert

What are your options if your lease is forfeited due to insolvency?

If the problems with your landlord are just the tip of the iceberg and you believe your company is insolvent - or is at risk of soon becoming insolvent - you should take steps to rectify the situation as a matter of urgency. 

Quite often a landlord threatening to forfeit a lease due to non-payment of rent indicates a deep-rooted problem with the company's finances. 

If you owe money to several parties including your landlord, suppliers, HMRC, or loan providers, you may need to consider seeking formal insolvency advice to better understand the options open to you. At Real Business Rescue, our team of licensed insolvency practitioners are here to provide you with all the help and advice you need during times of acute financial distress. 

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If you are faced with being served a forfeiture on your commercial tenancy then we would recommend gaining specialist advice for a commercial lease legal specialist. The Right to Forfeiture is a complex piece of legislation, with very few statutory rules.

If your lease problems have reached the point where you believe your company is now beyond rescue, Real Business Rescue can help with your next steps. Our team of licensed insolvency practitioners help company directors who are facing financial difficulties and looking at ways of closing their company. Contact us today to arrange your free same day meeting at one of our nationwide offices.