Few moments in business feel as devastating as finding that your office, shop or unit has been locked up overnight. Forfeiture (where a landlord seeks to end a lease by re-entering the property following a breach of covenant by the tenant) can happen suddenly, often after rent arrears have accrued or an alleged breach of the commercial lease, leaving stock, equipment and staff stranded. And it is important to know that the clock starts ticking immediately.
This guide explains what relief from forfeiture means, when it’s available and how you can act quickly to protect your position. You will understand your immediate options, what the court looks for when deciding whether to grant relief, and how to handle negotiations with your landlord while proceedings are underway.
If your premises have already been re-entered or you have received a forfeiture notice, our commercial property disputes solicitors can help you move fast to regain possession, minimise losses and keep trading.
Contents:
- When can a commercial tenant apply for relief from forfeiture?
- Does your commercial lease include a forfeiture clause?
- What grounds can a commercial tenant rely on for relief?
- How to apply for a relief of forfeiture
- Is there a time limit for applying for relief for forfeiture?
- Has your commercial landlord lost the right to forfeit the lease?
- What if the forfeiture was done wrongly?
- What should you do while you wait for the court to decide?
- How might a commercial landlord respond?
- Summary
When can a commercial tenant apply for relief from forfeiture?
You can apply for relief as soon as your commercial landlord has taken steps to forfeit the lease, either by changing the locks (referred to as ‘peaceable re-entry’) or by starting possession proceedings. The key is to act quickly. Delay can make the court less sympathetic, especially if it looks as though you have accepted the forfeiture or left it too long to put things right.
If your landlord has re-entered the property, you can apply directly to the County Court for relief. While you technically have up to six months to do so, most successful applications are made far sooner. Acting quickly shows the court that you are taking the matter seriously and want to remedy the breach. It also prevents further complications, such as the landlord re-letting the premises or claiming damages for loss of rent. In some instances, quick engagement can even lead to an informal agreement with the landlord before formal court proceedings are necessary.
If the forfeiture follows a section 146 notice under the Law of Property Act 1925 (used for breaches other than rent arrears), you may apply either before or after the landlord formally ends the lease. The advantage of applying early is that it may allow you to stop the process before you lose possession, saving significant costs.
For commercial rent arrears, there’s usually no section 146 notice. Landlords can forfeit immediately, but relief is normally granted if the tenant pays the arrears, interest and reasonable costs within a short timeframe. Courts are generally reluctant to let a lease end permanently for a short-term cashflow issue, especially when the tenant can show the default has been rectified and trading remains viable.
Does your commercial lease include a forfeiture clause?
Most commercial leases contain a forfeiture clause setting out when and how the landlord can end the lease. Without such a clause, their right to forfeit may be limited or even non-existent.
A commercial property disputes solicitor can help you review your lease as soon as a dispute arises. Look at what breaches trigger forfeiture, whether peaceable re-entry is allowed, and what notice (if any) the landlord must give. Having this information early shapes how your solicitor will frame your relief application and helps you identify the quickest route to reinstatement.
What grounds can a commercial tenant rely on for relief?
The court will only grant relief if it’s satisfied that you have remedied the breach (or are ready and able to do so) and that you will comply with the terms of the lease in the future.
If the issue was unpaid rent, paying all arrears, interest and costs usually resolves matters. If it was another type of breach, you will need to demonstrate that the problem has been rectified, for example, that repairs have been completed or the relevant insurance has been reinstated, and that the situation won’t happen again.
The court will weigh up the seriousness of the breach and whether the landlord has suffered ongoing loss. A minor, unintentional default that has been swiftly fixed is viewed very differently from a deliberate or repeated failure to comply with the lease’s terms.
How to apply for a relief of forfeiture
The process depends on how the forfeiture occurred. If your landlord has already issued possession proceedings, you can respond within those same proceedings by asking the court to grant relief. This often results in a faster outcome, as the relief question is decided alongside the landlord’s claim.
If the landlord has re-entered peaceably, you will need to start a new claim in the County Court. This usually begins with a detailed claim form supported by a witness statement and any relevant evidence, including the lease, rent account, correspondence with the landlord and proof of your attempts to resolve matters. You will also need to demonstrate that you can meet the landlord’s financial demands, usually by showing proof of funds or evidence that payment has already been made into your solicitor’s client account.
The court will then list a hearing, often within a few weeks, to decide whether to grant relief or give directions for a fuller hearing later on. In urgent cases, such as where your business operations are at risk or valuable stock is locked inside the premises, your solicitor can seek an emergency hearing within days. It’s possible to request interim access (sometimes called interim relief) while the main claim is ongoing, allowing you to re-enter temporarily to protect assets or continue limited trading.
At the hearing itself, the judge will want to see that you have acted promptly, that you understand and accept the seriousness of the breach, and that reinstating the lease will not cause unfair harm to the landlord. Where possible, your solicitor will prepare a clear payment proposal or settlement plan to address any arrears or outstanding obligations. In most cases, if you have already paid or offered to pay what’s due, and there is no ongoing dispute about compliance, the court will reinstate your lease immediately.
Because the process is technical and evidence-heavy, professional support will be needed. A well-prepared application can often make the difference between a quick reinstatement and a prolonged, costly dispute.
Is there a time limit for applying for relief for forfeiture?
For commercial rent arrears, applications should be made within six months of forfeiture. The court has the discretion to refuse relief if you have delayed unnecessarily. For other breaches, there is no fixed statutory deadline, but the longer you wait, the weaker your position becomes.
If the property has already been re-let to someone else, the court is unlikely to grant relief, so acting quickly really does matter. A solicitor can help you move fast, preparing urgent applications or injunctions to preserve your rights while the case is being reviewed.
Has your commercial landlord lost the right to forfeit the lease?
Sometimes, a commercial landlord’s own actions can stop them from enforcing forfeiture. If they knowingly accept rent or otherwise treat the lease as continuing after the breach, the law may view this as a “waiver” of their right to forfeit.
For example, if you fall behind on rent but the landlord later accepts payment for a new period, that can be treated as evidence if they chose to continue the lease. Once waived, that right to forfeit for that particular breach is gone. The concept of waiver often causes confusion, because landlords sometimes accept rent payments “under protest” or with express statements that they’re not waiving their rights. Whether that statement is legally effective depends on the timing and the surrounding circumstances. It is common for landlords to take advice before accepting any payment to avoid unintentionally weakening their position.
If you think the landlord has acted inconsistently or tried to forfeit unlawfully, speak to your solicitor. You may have grounds to challenge the forfeiture altogether rather than directing your time and resources into applying for relief.
What if the forfeiture was done wrongly?
If a landlord forfeits without a valid forfeiture clause or without serving the required notice, their actions may be unlawful. In those cases, you can ask the court to declare the forfeiture as invalid and you may also be entitled to damages for loss of business, disruption, or even trespass.
In some situations, you may not even need relief; you could simply argue that the lease was never properly ended in the first place. But because timing and evidence are critical, you should get urgent advice before taking further action.
What should you do while you wait for the court to decide?
Although only the court can formally grant relief, landlords sometimes agree to short-term arrangements while your application is being heard. A common example is a temporary licence to occupy, allowing you to re-enter the property and continue trading while the dispute is resolved.
These interim agreements do not formally restore the lease but can help to reduce losses and demonstrate cooperation. They should always be documented properly by solicitors to avoid accidentally undermining your claim or creating a new tenancy by mistake. In practice, these temporary licences are often negotiated within days of forfeiture, especially where both parties recognise that an immediate business closure benefits no one.
Courts often view this kind of pragmatic cooperation as a sign of good faith and will take it into account when deciding whether to grant relief. It also reflects the commercial reality that most businesses and landlords want a working solution rather than a drawn-out legal battle.
How might a commercial landlord respond?
Every landlord approaches forfeiture differently. Some will take a hard line, especially if the tenant has repeatedly breached the lease or caused serious damage. Others will see the commercial sense in working with a tenant who can quickly pay arrears and secure future compliance.
A commercial landlord might oppose relief if they have already re-let the property or have concerns about your reliability. But in many cases, negotiation through solicitors can lead to reinstatement without the need for a contested court hearing.
Landlords will also want to avoid accidentally waiving their right to forfeit, so they too will often take legal advice before agreeing to any interim arrangements.
Summary
Successfully securing relief from forfeiture as a commercial tenant often hinges upon acting quickly, communicating openly and showing that you have put things right.
If your landlord has re-entered your premises or served a forfeiture notice, the best thing you can do is seek immediate legal advice. An experienced commercial property disputes solicitor can assess your position, protect your business interests and, where possible, negotiate reinstatement before the situation becomes permanent.
