Forfeiture of a lease under the Law of Property Act 1925

Forfeiture means the act of losing or surrendering something as a penalty for a mistake or fault or failure to perform etc.

A landlord usually reserves the right to forfeit a lease. Before a landlord may exercise a right of re-entry or forfeiture of lease the provisions of s.146(1) of the Law of Property Act 1925 must be complied with.

This section applies to most breaches of covenant save for:

  1. non-payment of rent (s.146(11)) and
  2. the cases specified in s.146(8) and (9) for example, a mining lease or insolvency in special cases.

Under s.146(1) the landlord must serve upon the tenant a notice:-

  1. specifying the breach complained of
  2. if capable of remedy requiring the tenant to remedy it and
  3. in any case, requiring the tenant to make compensation in money for the breach.

Upon the service of a s.146 notice an application for relief against forfeiture may be made.

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