Relief from Forfeiture Definition

GLOSSARY

/rɪˈliːf/ /frɒm,frəm/ /ˈfɔːfɪtʃə/

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What does Relief from Forfeiture mean?

An application made by a tenant (or sub-tenant or mortgagee) following forfeiture, seeking the reinstatement of the (forfeited) lease (or the grant of a new lease for the remainder of the term in respect of a subtenant or mortgagee).

View the related checklists about Relief from Forfeiture

Due diligence—head lease alienation provisions—checklist

Due diligence—head lease alienation provisions—checklist On any due diligence exercise on the acquisition of a leasehold interest in land, it is essential to consider the ability of the tenant to assign, underlet or charge the property. Any provisions that are unduly restrictive may: • have an adverse impact on the ability of the buyer to dispose of their interest in the property in the future • be a property management burden • impact on the overall value of the property to the buyer This Checklist is aimed primarily at leases granted for a reasonably long term at an annual market rent. For further guidance on: • building leases, see Practice Note: Building leases—alienation • side-by-side or geared rent leases, see Practice Note: Headlease rent linked to underlease rents • long leases granted for a premium at a peppercorn rent where the leasehold interest is virtually equivalent to a freehold interest, see Precedent: Long lease of whole of commercial premises at a premium Assignment Can the tenant assign the...

Steps to take when landlord becomes insolvent—checklist

Steps to take when landlord becomes insolvent—checklist This Checklist sets out the points that a tenant should consider if its landlord becomes insolvent. A tenant must continue to fulfil its obligations under the lease, but should also contact the insolvency practitioner immediately as a tenant will require information as set out below. Who should rent be paid to? The tenant must continue to pay rent in accordance with the terms of the lease. If the landlord has entered into administration, liquidation or bankruptcy, or had receivers appointed over the property, rent should be paid to the administrator, liquidator, trustee in bankruptcy or receiver as appropriate. In a company voluntary arrangement (CVA), the rent may be payable to the CVA supervisor, depending on its terms. The insolvency practitioner will normally serve notice on the tenant with directions about where rent is to be paid. Is the landlord holding a rent deposit? You must consider whether the rent deposit deed has been drafted so that the deposit remains separate from the assets...

Property case tracker—2023 [Archived]

Property case tracker—2023 [Archived] The Property case tracker is a list of key judgments from 2023 which we consider relevant to property lawyers. Cases are listed in reverse chronological order. The tracker employs the following definitions: • AST: assured shorthold tenancy; • CVA: company voluntary arrangement; • FTT: First-tier Tribunal; • HMO: house in multiple occupation; • LPA: local planning authority; • NPPF: National Planning Policy Framework; • RRO: rent repayment order; • RTM: right to manage; • TCC: Technology and Construction Court; • UT: Upper Tribunal (Lands Chamber); • VTE: Valuation Tribunal for England See also the Property key future developments tracker, which tracks the progress and outcome of appeal cases, whereas this document provides a summary of all cases that we consider relevant to property lawyers. See further: • Property case tracker—2022 [Archived] • Property case tracker—2021 [Archived] • Property case tracker—2020 [Archived] December 2023 Case Judgment date Summary Clapham v Narga [2023] EWHC 3337 (Ch) 21 December 2023 Permission to appeal boundary decision The Chancery...

Leases and licences of land—key features and differences

Leases and licences of land—key features and differences This Practice Note considers the key features of leases and licences and the approach taken by the courts in determining whether an agreement or other occupation arrangement is a lease or a licence. As tenants often benefit from significant statutory protections compared to licensees, the difference between a lease and a licence can be extremely important. Disputes and uncertainty often arise where the parties allow the occupation of land or premises without accurately recording their agreement in writing. Best practice is for the parties to enter into a written lease or licence which accurately reflects the nature of the tenant’s or licensee’s occupation and practical guidance on entering into licences, tenancies at will and other short term letting arrangements can be found in Practice Note: How to enter into short-term lettings and licences of commercial premises. In the absence of an agreement as to the terms of occupation there is a risk that a periodic tenancy will arise. Further guidance on identifying...

Discover our 58 Practice Notes on Relief from Forfeiture

Particulars of claim for forfeiture for breach (other than rent arrears)

Particulars of claim for forfeiture for breach (other than rent arrears) 1 The Claimant is the [freehold OR leasehold] owner of the premises known as [insert description of premises] (‘Premises’) and is entitled to possession of the Premises. The Defendant is the tenant of the Premises. 2 By a lease dated [insert date] between [insert landlord name] and [insert tenant name][ and [insert guarantor name]] (‘Lease’), the Premises were let for a term of [insert term eg 5 years] from [insert term commencement date] at an [initial] rent of £[insert amount of annual rent] per annum. The Claimant will refer to the Lease at trial for its full terms and effect. 3 Pursuant to clause [insert clause reference] of the Lease the Defendant covenanted to [insert description of tenant obligation]. 4 In breach of the Lease the Defendant has [insert details of breach of covenant]. 5 On [insert date of service of section 146 notice] the Claimant served upon the Defendant a notice pursuant to section 146...

Particulars of claim for forfeiture for rent arrears

Particulars of claim for forfeiture for rent arrears Particulars of Claim 1 The Claimant is the [freehold OR leasehold] owner of the premises known as [insert description of premises] (‘the Premises’) and is entitled to possession of the Premises. The Defendant is the tenant of the Premises. 2 By a lease dated [insert lease date] between [insert landlord name] and [insert tenant name] [and [insert guarantor name]] (‘the Lease’), the Premises were let for a term of [insert term eg 5 years] from [insert term commencement date] at [an initial] rent of £[insert amount of annual rent] per annum. The Claimant will refer to the Lease at trial for its full terms and effect. 3 By clause [insert clause reference] of the Lease the Defendant covenanted to pay rent at a rate of [insert annual rent] per year [in equal quarterly instalments on the usual quarter days]. 4 Clause [insert clause reference] of the Lease provided that in the event that rent is in arrears...

Dive into our 4 Precedents related to Relief from Forfeiture

A liquidator has disclaimed a commercial lease following the tenant going into voluntary creditors’ liquidation. The notice of disclaimer has been issued by the liquidator and served on the relevant parties. Can the landlord take immediate possession of the premises by peaceful re-entry or does the landlord have to wait 14 days to see if any interested party applies for a vesting order before taking possession?

A liquidator has disclaimed a commercial lease following the tenant going into voluntary creditors’ liquidation. The notice of disclaimer has been issued by the liquidator and served on the relevant parties. Can the landlord take immediate possession of the premises by peaceful re-entry or does the landlord have to wait 14 days to see if any interested party applies for a vesting order before taking possession? Disclaimer is an entirely statutory procedure which is governed by the Insolvency Act 1986 (IA 1986) and the Insolvency (England and Wales) Rules 2016 (IR 2016), SI 2016/1024. In the case of liquidation, the relevant provisions are found in IA 1986, ss 178–182 and in IR 2016, SI 2016/1024, rr 19.1–19.11. Disclaimer is effected by the liquidator authenticating and dating a notice of disclaimer. Within seven business days of dating of the notice of disclaimer, the liquidator must then deliver or serve copies of the authenticated and dated notice of disclaimer to all persons who to the liquidator’s knowledge are persons interested as described...

A landlord is renting out a commercial property which is used as a business by the tenant. The tenant is in considerable arrears and under the terms of the lease, such arrears allows the landlord to take back possession using peaceable re-entry. The tenant has installed an alarm system without the landlord's consent and not provided the landlord with the passcode. Assuming the landlord follows the correct procedure (ie done while the property is empty, displays the appropriate notices), would the alarm being set-off invalidate the peaceable re-entry, or would the landlord still be able to reclaim possession?

A landlord is renting out a commercial property which is used as a business by the tenant. The tenant is in considerable arrears and under the terms of the lease, such arrears allows the landlord to take back possession using peaceable re-entry. The tenant has installed an alarm system without the landlord's consent and not provided the landlord with the passcode. Assuming the landlord follows the correct procedure (ie done while the property is empty, displays the appropriate notices), would the alarm being set-off invalidate the peaceable re-entry, or would the landlord still be able to reclaim possession? This question raises the issue of how a landlord might effect a peaceable re-entry. It focuses upon a particular issue, it being assumed that the notice under section 146 of the Law of Property Act 1925 has been served. It is also assumed that the right to forfeit has arisen, that it has not been waived and that a right of re-entry is reserved by the lease. Care has been taken to...

See the 97 Q&As about Relief from Forfeiture

Banking & Finance—July to September 2024 case round-up

Banking & Finance analysis: This News Analysis provides a summary of the cases we have alerted in Banking & Finance from July to September 2024.

Property Disputes weekly highlights—12 September 2024

This week's edition of Property Disputes weekly highlights includes: the introduction of the Renters’ Rights Bill, a Court of Appeal decision on an application to set aside an order staying possession of property, High Court cases on relief from forfeiture for breach of a ‘permitted use’ clause, an application for proceeds of sale of properties, and on property held on a constructive trust, and an Upper Tribunal decision on whether a premises formed a single hereditament.

Read the latest 155 News articles on Relief from Forfeiture

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