Steps to Take to Enact a Commercial Lease Forfeiture

When a commercial tenant breaches the terms of a lease - particularly through non-payment of rent - landlords may need to take action to recover possession of the property. Commercial lease forfeiture is a legal remedy that allows landlords to regain control of their premises, but it must be done properly and lawfully to avoid complications.

Whether you're dealing with forfeiture of lease for non-payment or another form of breach, this guide breaks down everything you need to know about enacting commercial forfeiture in the UK.

What Is Commercial Lease Forfeiture?

Commercial lease forfeiture is the legal process by which a landlord terminates a lease early due to the tenant’s breach of contract. This typically happens in situations involving:

●      Non-payment of rent

●      Unauthorised use of the premises

●      Subletting without consent

●      Damage to the property

The right to forfeit must be clearly written into the lease agreement. Without this clause, landlords won’t be able to enact leasehold forfeiture, regardless of the tenant’s behaviour.

Forfeiture for Non-Payment of Rent

One of the most common reasons for commercial lease forfeiture is non-payment of rent. In this situation, a landlord can exercise their right to forfeit without giving prior notice, provided the lease allows it.

However, due to recent legislative changes and protections brought in during the COVID-19 pandemic, there were temporary restrictions on enforcement. As of now, those restrictions have largely been lifted, but it's essential to confirm current legal conditions before proceeding.

Peaceable Re-entry vs Court Proceedings

There are two main methods for enforcing forfeiture of lease:

Peaceable Re-entry

This involves physically re-entering the premises (usually with the help of enforcement agents like Dukes Bailiffs) and changing the locks. It's swift and cost-effective but must be done without conflict or resistance.

Court Proceedings

If peaceable re-entry isn’t possible - due to resistance or uncertainty - it may be necessary to apply to the court for a possession order. This process can be lengthier and more expensive but provides greater legal protection.

Step-by-Step Guide to Enacting Commercial Forfeiture

Here’s a clear breakdown of the steps you should follow:

1. Review the Lease Agreement

First things first: check that your lease includes a forfeiture clause. This is the legal foundation of your right to reclaim possession.

If the clause is missing or unclear, seek legal advice before taking further steps.

2. Identify the Type of Breach

Determine whether the tenant’s breach relates to non-payment of rent, a covenant breach or another issue. The process may differ depending on the nature of the breach.

For non-payment of rent, forfeiture can typically be exercised without notice; for other breaches, a Section 146 notice is required.

3. Engage Certified Enforcement Agents

Attempting peaceful re-entry without professional help is risky. At Dukes Bailiffs, our enforcement agents are fully certified and experienced in handling commercial lease forfeiture quickly and legally. We ensure your rights are protected and avoid unnecessary conflict.

4. Act Promptly and Carefully

Timing is crucial. If a landlord accepts rent payments after the breach, they may be seen as waiving their right to forfeit. Always seek advice before accepting late payments or entering into negotiations with the tenant.

5. Secure the Premises

During peaceable re-entry, agents will attend the premises (usually outside working hours), change the locks and secure the property. A notice of forfeiture is then affixed to the door to inform the tenant that the lease has ended.

This step must be handled professionally and peacefully. If anyone is present and objects, the re-entry should not proceed without a possession order from the court.

6. Inventory and Possessions

Following forfeiture, an inventory of the tenant’s belongings is taken. The tenant should be given reasonable time to collect their possessions. Storage arrangements may also be necessary.

7. Consider Relief from Forfeiture

Tenants have the right to apply for relief from forfeiture. This means they can apply to court to have the lease reinstated, typically by paying the arrears and covering the landlord’s costs.

Relief is usually granted if the breach is remedied quickly, so landlords should be prepared for this possibility.

When Court Proceedings Are Necessary

If peaceful re-entry isn’t an option (e.g. due to tenant presence or high risk of confrontation), landlords must apply for a court possession order. This involves:

●      Issuing court proceedings under CPR Part 55

●      Attending a hearing

●      Awaiting a judge’s decision

This process can take several weeks and may incur more legal costs but offers a clear, enforceable outcome.

Risks of Getting It Wrong

Incorrectly handling a forfeiture for non-payment of rent or other breach can result in:

●      Claims for unlawful eviction

●      Damage to the landlord’s reputation

●      Legal costs and penalties

●      Reinstatement of the lease by the courts

To minimise risk, always instruct certified enforcement agents and seek legal advice where necessary.

Benefits of Professional Support

Working with experienced specialists like Dukes Bailiffs ensures that your commercial lease forfeiture is carried out:

●      Legally: We operate under current UK law and industry standards.

●      Efficiently: With minimal disruption to your business or property.

●      Safely: Our team is trained to handle sensitive re-entries and mitigate conflict.

We also offer full documentation, inventory services and advice on next steps such as property re-letting or tenant possessions.

Why Choose Dukes Bailiffs for Commercial Forfeiture?

At Dukes Bailiffs, we’ve supported landlords, property managers and agents across the UK with effective leasehold forfeiture and enforcement services. With years of experience, full certification and a client-first approach, we handle the complexities so you don’t have to.

Our services include:

●      Peaceable re-entry

●      Court possession support

●      Tenant communication and notices

●      Inventory and property securing

●      Commercial rent arrears recovery

We know how important it is to protect your investment. That’s why we act quickly, professionally and with full compliance at every step.

Get Support with Commercial Lease Forfeiture

If you're a landlord dealing with forfeiture for non-payment of rent or another breach of contract, don't take risks with your property. Contact Dukes Bailiffs today to speak to our experienced team about your next steps.