Forfeiture

The termination of a lease by the landlord due to breach of covenant by the tenant, including non-payment of rent. Forfeiture extinguishes the tenant's interest in the property. For most breaches, the landlord must first serve a section 146 notice under the Law of Property Act 1925 before proceeding.

In practice

Forfeiture is an alternative to CRAR for commercial landlords seeking to recover rent arrears. It is generally quicker but permanently ends the tenancy, which may not be desirable if the landlord wants to retain a paying tenant. The tenant can apply for relief from forfeiture, and the court has wide discretion to grant it on terms that the arrears are paid.