Harper James advises ambitious UK businesses on commercial leases and disputes under the laws of England and Wales. When a landlord or tenant breaches a lease, the correct remedy depends on the breach, the lease wording, the evidence available and the urgency of protecting the business.
For unpaid rent, a landlord can pursue a debt claim, draw on a rent deposit, enforce a guarantor’s obligations or use Commercial Rent Arrears Recovery (CRAR) where its statutory conditions are met. CRAR applies to rent, not generally to service charge, insurance or other lease costs, and requires formal notice before enforcement. A landlord can also forfeit the lease by peaceable re-entry or court proceedings, but accepting rent or other conduct can waive the right to forfeit. The tenant then has a route to seek relief from forfeiture, usually by paying the arrears and addressing the breach.
A lease should be reviewed before action is taken. A practical guide to commercial lease disputes explains how forfeiture, rent recovery, dilapidations and break clauses work together. The landlord should preserve records of arrears, notices, inspections and correspondence, then select a remedy that matches the commercial objective. A statutory demand, court claim or insolvency process carries different costs, timescales and consequences from negotiated payment terms.
A tenant facing landlord default can seek damages, an injunction or a declaration of its contractual rights. Examples include persistent interference with quiet enjoyment, failure to carry out a landlord’s repair obligations or unlawful prevention of access. Rent is not automatically suspended because the landlord has breached the lease. A tenant needs an express rent suspension clause, a valid set-off right or a court order before withholding payment. Unauthorised withholding can trigger forfeiture or other enforcement action.
The first step is to identify the precise obligation, the breach notice requirements and any time limit. The parties should then calculate the financial impact, check guarantees and rent deposit arrangements, and preserve key documents. Mediation and a structured repayment agreement often protect the trading relationship, while urgent court relief is reserved for threatened forfeiture, interference with possession or evidence that assets are being dissipated. Harper James can assess the lease, prepare a notice or response, and advise on the most proportionate route for the business.