Lease termination

Question 1

`what are the landlord’s remedies for non-payment of debt?

Answer 1

1. debt action- limited to rent due 6 years before proceedings and court claims are costly and time consuming.
2. CRAR.
3. forfeiture.

Question 2

what are the requirements for CRAR?

Answer 2

premises must be purely commercial.
minimum of seven days principal rent is owed (it can’t be used to recover service charge, insurance or any other sum reserved as ‘rent’ but does include VAT and interest)
- The lease has not been forfeited.
- Seven clear days notice but be given intention to enter the tenant’s premises (exclude Sundays and bank holidays).
- The landlord must serve a further seven clear days’ notice if it intends to sell any of the seized goods.

Question 3

When are landlords allowed to forfeit the lease?

Answer 3

must be a clause within the lease.
for non-payment of rent, landlord is entitled to forfeit as soon as the lease allows.
for other breaches, landlord must serve a s146 notice.

Question 4

how can a landlord waive forfeiture?

Answer 4

• If landlord acts in a way that acknowledges the continuing existence of the lease, the landlord risks losing the right of forfeiture.
• Once and for all breach= landlord waives right forever e/g non-payment of rent, unlawful assignment or underletting or an insolvency event.
• Continuing breach= landlord regains right of forfeiture each day the breach continues.
• E.g failing to keep premises in repair, breach of user covenant.

Question 5

what are the remedies for a repairing breach>

Answer 5

damages- limited to reduction in value of landlord’s reversion.
forfeiture- s146 notice must be served.
self help- best one.
specific performance- only if no other option.

Question 6

tenant’s counter notice for forfeiture?

Answer 6

1. lease must be for a term of 7 years or more and
2. at least 3 years left to run.
   28 days to serve a counter notice.