Q&As

Where a lease made in 1993 includes the right to forfeit ‘if the tenant is wound-up whether voluntarily or compulsorily otherwise than for purposes of amalgamation or reconstruction’, does entering administration trigger the right to forfeit, in view of the fact that the lease pre-dates the modern administration regime?

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Published by a ³ÉÈËÓ°Òô Property Disputes expert
Published on: 20 November 2024
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The interpretation of the terms of a lease are always a matter of construing the document as a whole, in the light of the admissible background facts. See Practice Note: Contract interpretation—the guiding principles. The ordinary rules of construction apply, although the court leans towards a strict interpretation of a forfeiture clause. See Commentary: Construction of the proviso for re-entry: Hill and Redman's Law of Landlord and Tenant [4609].

Subject to that caveat, it appears unlikely that a lease which gives the landlord the right to forfeit if the tenant is 'wound up' would be held to apply on

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