Forfeiture and the section 146 notice are the tools landlords reach for when a tenant seriously breaches the lease: stops paying rent, or breaks an important covenant. Where a tenant defaults on rent and there’s a personal guarantee in place, the landlord may also look to the guarantor. It’s the right to bring the lease to an end and take the property back. It’s powerful, which is exactly why the law surrounds it with conditions. For a landlord considering it, or a tenant on the receiving end, the procedure matters enormously, because getting it wrong can be costly for either side.
Forfeiture and Section 146 Notice: Is There a Right to Forfeit?
Before forfeiture and section 146 notice procedures come into play, a landlord must first establish they have the right to forfeit at all. There’s almost always a forfeiture (or re-entry) clause, but it has to be there. The clause sets out when the right arises, typically on non-payment of rent or on breach of the tenant’s other obligations.
Two Routes, Depending on the Breach
How the landlord proceeds depends on what’s been breached.
For non-payment of rent, there’s a relatively direct route, though there are still formalities and the tenant can apply to the court for relief.
For any other breach (disrepair, unlawful alterations, subletting without consent, and so on), the landlord must first serve a section 146 notice under the Law of Property Act 1925. This notice has to:
- Specify the breach the landlord is complaining of.
- Require the tenant to remedy it, if it’s capable of remedy.
- Where appropriate, require the tenant to pay compensation.
The landlord must then give the tenant a reasonable time to put things right. Only if they fail to do so can the landlord move to forfeit. The notice is a genuine safeguard: it gives the tenant a chance to fix the problem before losing the lease.
Relief from Forfeiture
Even after a landlord forfeits, the story may not be over. A tenant can apply to the court for relief from forfeiture, asking to have the lease reinstated, usually on condition that they remedy the breach and pay any arrears and costs. Courts often grant relief, especially when tenants clear rent arrears, because forfeiture is a drastic outcome. For a landlord, that means forfeiture doesn’t guarantee you get the property back.
I asked Richard, our SRA-regulated co-founder, how landlords most often trip themselves up when forfeiting a lease:
If a landlord needs to forfeit a lease, it will be because of a breach of one of the lease’s terms, most often because the tenant has persistently failed to pay the rent or to keep the property in proper repair. It is essential that the landlord does not waive the breach: they must not do anything that could be taken as forgiving what has gone wrong, or giving the tenant another chance. It is surprisingly easy to slip up. Simply accepting a payment of rent can mean the landlord can no longer forfeit the lease for that breach, until the tenant breaches the lease again.
Richard, our SRA-regulated co-founder
The Waiver Trap
Here’s where landlords most often undo themselves. If the landlord treats the lease as still continuing after a breach — most commonly by demanding or accepting rent — they may waive the right to forfeit. This can happen almost by accident. A rent demand goes out automatically, or someone in the office banks a payment. Either way, the right to forfeit for that known breach disappears.
That’s why landlords contemplating forfeiture have to be careful and disciplined from the moment they become aware of a breach. One routine rent demand can sink the whole thing.
A Last Resort, Carefully Handled
Forfeiture is the nuclear option, and it behaves like one. It carries serious consequences, a strict procedure, and plenty of ways to get it wrong. Most landlords use it as a threat, bringing a defaulting tenant to the table rather than following through. But when landlords do use it, they must handle the notice, relief rules, and waiver rules with care. Forfeiture also ends more than the current term. For a tenant with security of tenure under the Landlord and Tenant Act 1954, it ends their statutory right to renew too. That’s part of why courts take forfeiture so seriously.
Frequently Asked Questions on Forfeiture and Section 146 Notice
A landlord’s right to bring a lease to an end and take the property back when the tenant breaches it. The right has to be given by the lease itself, in a forfeiture or re-entry clause.
A notice under the Law of Property Act 1925 that a landlord must serve before forfeiting for any breach other than non-payment of rent. It has to specify the breach, require it to be remedied if it can be, and where appropriate require compensation.
Yes. After a section 146 notice the tenant must be given a reasonable time to remedy the breach. Only if they fail can the landlord move to forfeit.
A tenant’s application to the court to have the lease reinstated after forfeiture, usually on condition that the breach is remedied and arrears and costs are paid. Courts grant it often, especially where rent arrears get cleared.
Conduct by the landlord that treats the lease as continuing after a known breach, most commonly demanding or accepting rent. It can cost the landlord the right to forfeit for that breach, and it can happen by accident through routine rent collection.
The best way to avoid disputes like these is a clear, fair lease that both sides understand from the start. Aqqord’s documents are drafted by senior solicitors and pre-negotiated to be fair to landlord and tenant alike. Set your terms and preview a full draft for free at aqqord.com, with nothing to pay until both parties sign.
