Commercial Repossession and Forfeiture Solicitors

Expert legal advice for landlords and tenants on forfeiture of commercial leases across Solihull and the West Midlands

If you need legal advice on repossessing a commercial property or on the forfeiture of a commercial lease, our solicitors, with over 40 years of experience in commercial property law, can help.

When a commercial tenant breaches the terms of their lease, whether by failing to pay rent, failing to maintain the property, using the premises for an unauthorised purpose, or becoming insolvent, the landlord may have the right to end the lease and recover possession. This right is called forfeiture. Forfeiture for most breaches other than non-payment of rent first requires the landlord to serve a formal notice under Section 146 of the Law of Property Act 1925 specifying the breach and allowing the tenant an opportunity to remedy it.

We advise landlords and tenants across Solihull and the West Midlands on commercial repossession and forfeiture. Our team has over 40 years of experience in commercial property law. We give landlords direct advice on whether they have grounds to forfeit, how to proceed safely, and how to respond if a tenant applies to the court for relief. We advise tenants facing forfeiture on their position and their options.

Forfeiture is a serious step with significant consequences for both parties. A landlord who acts without proper advice risks waiving the right to forfeit or facing a successful application for relief that reinstates the lease. A tenant who ignores a forfeiture without taking advice risks losing the premises and may still face liability for the rest of the lease term.

Our Repossession and Forfeiture Services

We advise on all aspects of commercial repossession and forfeiture, including:

● Advising landlords on whether grounds for forfeiture exist and the strength of their position

● Advising on the requirement to serve a formal notice under Section 146 of the Law of Property Act 1925 before forfeiting for a covenant breach other than non-payment of rent

● Advising on the risk of waiving the right to forfeit by accepting rent or dealing with the tenant as if the lease continues after a breach has occurred

● Managing the process of peaceful re-entry, where that is available and appropriate

● Issuing possession proceedings in the County Court where court action is required

● Responding to applications for relief from forfeiture made by tenants or others with an interest in the lease

● Advising tenants who have received a forfeiture notice or have been locked out of their premises

● Advising on the grounds for forfeiture applicable in each case, including non-payment of rent and covenant breach

● Advising on the position of subtenants and mortgagees who may be affected by forfeiture

● Advising on the interaction between forfeiture and insolvency where the tenant is in administration or liquidation

Why Choose Pearcelegal?

Forfeiture requires precision. A landlord who demands rent, accepts a payment, or communicates with the tenant after a breach without reserving their rights may be treated as having waived the right to forfeit for that particular breach. Once that right is waived, it cannot be revived in respect of the same breach. Getting the sequence of steps right before any further action is taken matters, and that requires legal advice.

We also advise tenants facing forfeiture. A tenant does not lose the lease simply because the landlord has served a notice or physically re-entered the property. Courts in England and Wales have a broad power to grant relief from forfeiture, allowing the lease to continue on terms that remedy the breach and compensate the landlord. Whether relief is worth pursuing depends on the circumstances, the tenant's ability to remedy the breach, and the commercial importance of the premises.

Forfeiture situations can move fast. We respond within 24 to 48 hours and offer a free initial consultation so you understand your position before you decide what to do.

Get in Touch

We are ready to help with repossession and forfeiture, whether you are a landlord seeking to recover your property or a tenant trying to protect your position. Book your free consultation and find out exactly what your rights are before you take any further steps.

Please phone 0121 270 2700 or email info@pearcelegal.co.uk in complete confidence.

Frequently asked questions

How much does an initial consultation cost?

We offer a free initial 30-minute consultation for repossession and forfeiture matters. After that first meeting, we provide a clear estimate of the costs for the work ahead.

How quickly can repossession proceedings be completed?

Where peaceful re-entry is available and the property is genuinely vacant, physical repossession can take place quickly once the decision to forfeit is made. Court proceedings take longer. An uncontested possession claim in the County Court may be concluded within two to three months. Where the tenant defends the claim or applies for relief, the process takes longer. We will advise you at the outset on the timescale to expect in your specific situation.

What happens to the lease when the tenant becomes insolvent?

The tenant's insolvency significantly complicates forfeiture. Where a tenant enters administration, the landlord cannot forfeit without the administrator's or the court's permission. Where a tenant is in liquidation, different rules apply. Taking advice promptly when a tenant becomes insolvent is particularly important. We advise landlords dealing with insolvent tenants on the specific steps required and the interaction between insolvency law and forfeiture rights.

Can a subtenant or mortgagee apply for relief?

Yes. Subtenants and mortgagees who hold a charge over the lease may apply independently for relief from forfeiture to protect their own interest, even if the tenant does not apply. Courts can grant them a new lease directly in appropriate circumstances. This applies, for example, where a bank holds a charge over the leasehold interest and needs to protect its security. We advise lenders and subtenants on these applications where required.

What is relief from forfeiture?

Relief from forfeiture is the court's power to allow a lease to continue after forfeiture, on terms that usually require the tenant to remedy the breach and pay the landlord's costs. Courts in England and Wales have a wide discretion to grant relief where it is just to do so under Section 146 of the Law of Property Act 1925. Tenants who have been locked out or who face possession proceedings can apply to the court for relief. The application should be made promptly, and legal advice should be taken as soon as the forfeiture occurs.

What is waiver of forfeiture?

A waiver occurs when a landlord does something that treats the lease as continuing after they become aware of the breach that gives rise to the right to forfeit. Accepting rent that falls due after the breach is the most common example. Once a landlord waives the right to forfeit for a particular breach, they cannot forfeit on that ground for that breach. Issuing a routine rent invoice has been found to constitute a waiver, even where the landlord did not intend it. Landlords should take advice before communicating with tenants once a breach has occurred.

Does the landlord have to give the tenant notice first?

It depends on the ground for forfeiture. Where the breach involves non-payment of rent, the landlord does not need to serve a formal notice before forfeiting. For all other breaches, the landlord must first serve a notice under Section 146 of the Law of Property Act 1925 specifying the breach, requiring it to be remedied where remedy is possible, and requiring the tenant to pay compensation. The tenant must then be given a reasonable time to comply before the landlord can forfeit. Failing to serve this notice where it is required makes any subsequent forfeiture invalid.

Can a landlord simply change the locks?

A landlord can forfeit a commercial lease by physically re-entering the property and changing the locks, but only where the property is genuinely empty of all occupiers and their belongings. Re-entry is not permitted when anyone is on the premises. Using physical re-entry where a residential element or occupier is present is a criminal offence. Before taking any physical re-entry steps, take legal advice to confirm the circumstances genuinely permit it.

What is forfeiture of a commercial lease?

Forfeiture is the landlord's right to end a commercial lease early when the tenant breaches the lease terms. The right must be expressly included in the lease through a forfeiture clause. Common grounds include non-payment of rent, breach of repairing obligations, unauthorised use of the premises, unauthorised assignment or subletting, and the tenant's insolvency. Without a forfeiture clause in the lease, the landlord has no right to forfeit.