Not in my court – NearlyLegal

Posted June 7th, 2013 in covenants, forfeiture, housing, leases, news by tracey

“Forfeiture is, for the most part, beloved by landlords and hated/feared by tenants. For what might be relatively minor breaches of covenant, you can lose your lease and the landlord make an enormous windfall. The legislative trend is (slowly) in favour of restricting (and possibly even abolishing) forfeiture as demonstrated by s.168, Commonhold and Leasehold Reform Act 2002. By s.168, Commonhold and Leasehold Reform Act 2002, a landlord may not serve a notice under s.146, Law of Property Act 1925, or otherwise exercise a right of re-entry (i.e. forfeiture) in respect of a breach of a covenant (other than one to pay rent – which is unaffected by s.146, see s.146(11); or service/administration charges, which are dealt with under s.81, Housing Act 1996), unless the breach has been admitted by the tenant or determined by a court, LVT or arbitral tribunal.”

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NearlyLegal, 3rd June 2013