Forfeiture of Commercial Leases for Rent Arrears - A Toolkit for Advisers

Introduction

Forfeiture remains one of the most powerful remedies available to commercial landlords when rent goes unpaid, but it is highly procedural, fact-sensitive and packed with traps that can turn a straightforward recovery exercise into costly litigation. At the same time, commercial tenants often have viable routes to resist forfeiture, secure relief, or counterattack on waiver, invalid demands, or improper conduct.

This virtual classroom seminar is delivered from the perspective of a commercial property litigator dealing with real-time arrears and enforcement disputes. It covers the practical decision-making: when forfeiture is the right tool, when it is not, how to avoid waiving the right to forfeit, how to forfeit lawfully (peaceable re-entry vs proceedings) and how to manage relief applications. It also addresses the ongoing legacy of pandemic-era restrictions and the strategic interaction with insolvency processes and rent arrears negotiations.

Attendees will leave with clear procedural steps, tactical guidance, and a best-practice checklist for landlords and tenants in non-payment scenarios.

What You Will Learn

This live and interactive course will cover the following:

• When forfeiture is appropriate vs alternatives:
• CRAR, debt claims, statutory demands/insolvency
• Rent deposit, guarantors, side letters and indemnities
• Forfeiture fundamentals:
• Source of right (express clause) and what it covers
• What counts as ‘rent’ and arrears triggers
• Waiver traps (biggest risk area):
• What actions waive the right to forfeit
• Rent demands, acceptance, communications and timing
• Avoiding accidental waiver in practice
• How to forfeit correctly:
• Peaceable re-entry: conditions, risks, evidence, locksmith protocol
• Court proceedings: speed, remedies, and tactical benefits
• Dealing with subtenants/occupiers
• Relief from forfeiture:
• The test and key factors (promptness, arrears, conduct)
• How landlords can resist relief/protect position
• Undertakings and payments into court
• Practical considerations:
• Repairs, dilapidations, service charge and insurance during enforcement
• Handling goods left at the premises
• Reputational/business continuity issues
• Drafting improvements:
• Clauses that reduce dispute risk: rent definitions, notice provisions, interest and enforcement costs recovery
• Negotiation dynamics:
• Using forfeiture as leverage without missteps
• Structuring settlements and surrender/regrant outcomes

Recording of live sessions: Soon after the Learn Live session has taken place you will be able to go back and access the recording - should you wish to revisit the material discussed.