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:
- non-payment of rent (s.146(11)) and
- 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:-
- specifying the breach complained of
- if capable of remedy requiring the tenant to remedy it and
- 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.