Bringing a claim, we can help!
FORFEITURE – Is your right as a landlord to bring a lease to an end and take back control of your commercial property.
You can make a forfeiture claim if your tenant is in breach of certain events specified in the lease, such as arrears or the tenant’s insolvency.
You need to consider whether forfeiture is the best course of action depending on the circumstances. Is it in your commercial interests to take back possession?
Things to consider before Forfeiture
During a depressed economic climate there may be no benefit in you taking back possession. The following should be considered:-
- What is the demand like for the premises?
- What impact will forfeiture have on the value of the asset?
- Will you find another tenant quickly?
- Consider the outgoing which will be incurred if the property is void such as rate and insurance.
- Are there original tenants or guarantors under the lease? If so, would they be released following forfeiture?
- Does the property have any development opportunity?
- Is there any risk of squatters?
Are there any alternative remedies?
Before proceeding along the forfeiture path you should consider whether there are any alternatives remedies which may be more suitable. For example:-
- Is there a rent deposit from which the landlord can draw down to cover the arrears?
- Are there guarantors or previous tenants that the landlord can recover arrears from
- Can a statutory demand be used, which can be a quick method of recovery.
- If the issue is down to the tenant’s failure to repair, can you enter, carry out repairs and recover the costs from the tenant?
- If the premises are being used for unauthorised business activity, can you obtain an injunction?
How can we help with Forfeiture claims?
We get that good relationships are the foundation to any business and as such we also actively encourage the use of Alternative Dispute Resolution as a means to resolve cases without the need for court proceedings.
If you have a problem with a commercial tenant and are considering forfeiture, please call for a chat.
Tel: 02477 981545 – All initial enquiries are completely free of charge.
We can provide a number of funding solutions including a fixed fee quotation and payment by instalments