Property Law 10 - Forfeiture Flashcards
What is Forfeiture?
The right of the landlord to re-enter the premises and take them back from the tenant.
What is the effect of Forfeiture?
It brings the lease to an end before the contractual term (or during any period of holding over).
Is Forfeiture an automatic right?
No, it is only permitted insofar as the lease provides for it.
How does a Landlord start forfeiture proceedings?
Issues a s.146 notice.
When does a Landlord not have to issue a section 146 notice in respect of forfeiture?
For non-payment of rent
What methods are there for forfeiture to be carried out
- peaceable re-entry
- court order of forfeiture
In what circumstances can a Landlord waive his right to forfeiture
- the landlord does some unequivocal act recognising the continuing existence of the lease;
- with knowledge of the breach in question; and
- communicates that act to the tenant.
The intention of the landlord is irrelevant.
What are the two types of breach when considering a landlord’s waiving of his right to forfeiture and why does it matter?
- Once and for all breaches - if the LL waives his right he will not be able to regain it for that breach.
- Continuing breaches - each day that the breach continues, the landlord regains the right of forfeiture.
What are once and for all breaches?
- non-payment of rent
- insolvency
- an unlawful assignment or underletting
What are continuing breaches?
- repair
- user
- insurance obligation
From what time can the tenant apply for relief from forfeiture?
As soon as the landlord serves a section 146 notice or starts the process of forfeiture
Is relief from forfeiture a discretionary remedy?
Yes
Who can seek relief from forfeiture?
- The tenant
- Other parties who derive an interest from the tenant’s lease, such as a mortgagee or undertenant.
