Lease Forfeiture UK: Landlord's Guide (2026)

At a glance

• The right must be in the lease. There is no free-standing statutory right of re-entry — a landlord can only forfeit where the lease itself contains a forfeiture or re-entry clause covering the breach in question.
• Non-payment of rent does not require a section 146 notice. Relief is instead governed by sections 138 and 139 of the County Courts Act 1984.
• Any other breach requires a notice under section 146 of the Law of Property Act 1925, specifying the breach, requiring it to be remedied if possible, and giving a reasonable time to comply.
• Waiver — an act that unequivocally treats the lease as continuing, such as demanding or accepting rent after learning of a breach — can extinguish the right to forfeit for that breach.
• Long residential leases carry extra protection: before a section 146 notice can even be served, the breach must be admitted or formally determined (Commonhold and Leasehold Reform Act 2002, s.168; Housing Act 1996, s.81 for service/administration charges), and small arrears of rent, service charges or administration charges — under £350, or outstanding less than 3 years in England — cannot found forfeiture at all (Commonhold and Leasehold Reform Act 2002, s.167).
• Peaceable re-entry (changing the locks without a court order) is available only for unoccupied commercial premises. It is unlawful against a dwelling while anyone is lawfully living there (Protection from Eviction Act 1977, s.2) — a court order is required instead.
• Relief from forfeiture is available to tenants, sub-tenants and mortgagees even after re-entry has happened, so forfeiture is rarely an automatic or final outcome.
• Reform is proposed but not law. A draft Commonhold and Leasehold Reform Bill (published January 2026) would abolish forfeiture for long residential leases, but as at August 2026 it remains a draft — the current rules described here still apply.

What forfeiture is

Forfeiture is the landlord's right to bring a lease to a premature end because the tenant has broken one of the obligations set out in it. The right does not exist automatically. It only arises where the lease itself contains a forfeiture clause (sometimes called a re-entry clause or proviso for re-entry), which spells out the circumstances in which the landlord can take the property back.

Without that clause, the landlord generally cannot forfeit, even if the tenant is clearly in breach. The breaches that most commonly trigger forfeiture are non-payment of rent, failure to carry out repairs, unauthorised alterations, insolvency of the tenant, and breaches of user covenants (using the property for something the lease does not permit).

How forfeiture is carried out depends on the type of breach. Rent arrears follow one route, other breaches follow another, and long residential leases carry additional statutory protections layered on top. Getting the category right at the start is essential, because the procedure is not interchangeable — serving the wrong kind of notice, or none at all, can make the whole process defective.

Non-payment of rent vs. other breaches

| | Non-payment of rent | Any other breach of covenant | |---|---|---| | Statutory notice before acting | Not required by section 146 LPA 1925 — but most leases require a formal demand for rent unless the lease dispenses with it | A section 146 notice specifying the breach, requiring remedy if possible, and allowing reasonable time | | Relief from forfeiture | County Courts Act 1984, ss.138–139 | Section 146(2) LPA 1925 | | Extra rule for long residential leases | Small-arrears bar under CLRA 2002, s.167 — no forfeiture unless arrears exceed £350 or have run for more than 3 years (England) | Breach must be admitted or determined before a notice can be served, under CLRA 2002, s.168 | | Peaceable re-entry of an occupied home | Unlawful — Protection from Eviction Act 1977, s.2 requires a court order | Same restriction applies |

Avoiding waiver

From the moment a landlord learns of a breach, care is needed not to do anything that suggests the lease is still treated as continuing. The classic trap is demanding or accepting rent that fell due after the landlord had knowledge of the breach — even rent collected routinely by a managing agent, or a payment accepted "without prejudice", can count as waiver unless it is returned promptly. Once waiver occurs, the right to forfeit for that particular breach is lost, although a fresh or continuing breach can still give rise to a new right to forfeit. Because waiver can happen through routine administrative actions — an automated rent demand, a standing order that is not stopped in time — landlords need to be cautious as soon as a breach comes to light, and many put a hold on demands and acceptances while they take advice.

The section 146 notice, in practice

For any breach apart from non-payment of rent, section 146 of the Law of Property Act 1925 requires the landlord to serve a notice before forfeiting. The notice must:

1. specify the particular breach complained of;
2. require the tenant to remedy the breach, if it is capable of remedy; and
3. require the tenant to pay reasonable compensation for the breach, if the landlord wants it.

The tenant must then be given a reasonable time to comply before the landlord takes further steps. What counts as reasonable is not fixed by the statute — it depends on the nature of the breach. A straightforward payment default might need only days or weeks; a substantial repairing obligation could reasonably need months.

Where the breach is disrepair and the lease had more than 3 years left to run when the section 146 notice was served, the Leasehold Property (Repairs) Act 1938 gives the tenant a right to serve a counter-notice. If served, the landlord cannot proceed with forfeiture (or an action for damages) without first obtaining the court's permission — a deliberate extra safeguard against landlords using disrepair claims aggressively.

Additional protections for long residential leases

Long residential leases (broadly, leases originally granted for more than 21 years) sit inside an extra statutory framework that does not apply to commercial tenancies or short residential lettings:

• Determination before notice. Under section 168 of the Commonhold and Leasehold Reform Act 2002, a landlord cannot serve a section 146 notice for breach of a covenant or condition unless the tenant has admitted the breach, or a court, the First-tier Tribunal (Property Chamber), or an arbitral tribunal has finally determined that the breach occurred. Even after that determination, the landlord must wait a further 14 days before proceeding.
• The same rule for service and administration charges. Section 81 of the Housing Act 1996 applies an equivalent determination-or-admission requirement specifically to unpaid service charges and administration charges, with the same 14-day wait once the amount is finally established as payable.
• A minimum threshold for arrears. Section 167 of the Commonhold and Leasehold Reform Act 2002 goes further still: a landlord cannot forfeit for arrears of rent, service charges or administration charges (or a combination of them) at all unless the unpaid amount exceeds a prescribed sum, or has been outstanding for more than a prescribed period. The Rights of Re-entry and Forfeiture (Prescribed Sum and Period) (England) Regulations 2004 set that sum at £350 and the period at 3 years for dwellings in England.

Together, these provisions mean forfeiture is a genuinely slow, court-supervised process for residential long leases — it is not a tool a landlord can deploy quickly, however clear the breach.

No peaceable re-entry into an occupied home

For commercial premises, peaceable re-entry (changing the locks, typically outside business hours, without going to court) remains a lawful option once the section 146 process — or, for rent, any lease-specific demand requirement — has been satisfied, provided the premises are unoccupied at the time.

That option is not available for a dwelling. Section 2 of the Protection from Eviction Act 1977 makes it unlawful to enforce a right of re-entry or forfeiture against premises let as a dwelling other than by court proceedings, for as long as any person is lawfully residing in the premises or part of them. A landlord who changes the locks on an occupied home without a court order risks both the forfeiture being ineffective and a claim for unlawful eviction.

Relief from forfeiture

Forfeiture is rarely the clean, final outcome landlords sometimes expect, because tenants — and others with an interest in the property — have wide rights to apply for relief.

• Rent arrears. Under sections 138 and 139 of the County Courts Act 1984, a tenant facing a county court possession claim for rent arrears can stop the claim automatically by paying the arrears and costs at least 5 clear days before the hearing. If the landlord has already re-entered without a court order, the tenant can apply to the county court for relief within 6 months of the re-entry, and the court has discretion to grant it on terms.
• Other breaches. Under section 146(2) of the Law of Property Act 1925, a tenant can apply to the court for relief in the landlord's own proceedings, or by bringing a claim. The court has wide discretion, taking into account the conduct of both parties and all the circumstances, and can attach conditions such as remedying the breach and paying the landlord's costs.
• Sub-tenants and mortgagees. Section 146(4) LPA 1925 allows anyone claiming an interest as an under-lessee — including a mortgagee — to apply for their own relief, and the court can vest a new lease in them directly, on the original terms, even though they were not party to the breach.

Relief is granted fairly readily for rent arrears where the tenant pays what is owed. For other breaches, the outcome depends heavily on the circumstances — how serious the breach was, whether it has been remedied, and the conduct of both sides.

Worked examples

Commercial rent arrears. A landlord lets a shop unit on a lease with a standard forfeiture clause. The tenant falls three months behind on rent. The landlord does not need to serve a section 146 notice — that requirement does not apply to rent — but the lease requires a formal demand unless dispensed with, so the landlord checks the lease wording first. The unit is empty out of hours, so the landlord instructs a locksmith to re-enter peaceably and changes the locks, posting a notice of re-entry. The tenant has 6 months from the date of re-entry to apply to the county court for relief under section 139 of the County Courts Act 1984; if the tenant pays the arrears and costs, the court is likely to grant relief and reinstate the lease.

Residential long lease, disrepair. A leaseholder under a 99-year lease of a flat has allowed the property to fall into serious disrepair in breach of the lease. Before the landlord can even serve a section 146 notice, section 168 of the Commonhold and Leasehold Reform Act 2002 requires the breach to be admitted by the leaseholder or determined by the First-tier Tribunal. The landlord applies to the tribunal, obtains a determination that the breach has occurred, then waits the mandatory 14 days before serving the section 146 notice giving a reasonable period to carry out the repairs. Only if the repairs are not done within that period, and subject to any counter-notice rights under the Leasehold Property (Repairs) Act 1938 if more than 3 years remain on the lease, can the landlord move towards forfeiture — and even then, the leaseholder (or their mortgage lender) can apply for relief.

What forfeiture reform is coming

Forfeiture has been criticised for years as a disproportionate remedy — particularly for residential leaseholders facing forfeiture over comparatively small, disputed sums. In January 2026 the government published a draft Commonhold and Leasehold Reform Bill for pre-legislative scrutiny, which proposes abolishing forfeiture of long residential leases altogether and replacing it with a court-supervised "lease enforcement claim" process.

As at August 2026, this remains a draft bill undergoing scrutiny — it has not been passed by Parliament and is not in force. The Leasehold and Freehold Reform Act 2024, which has received Royal Assent, does not itself abolish or amend the forfeiture regime described in this guide. Anyone relying on the current forfeiture rules for a long-running matter should check legislation.gov.uk for the latest position before acting, since the timetable for any reform commencing is not yet confirmed.

What to do if forfeiture is a possibility

1. Confirm the lease allows forfeiture. Read the lease carefully and check for a forfeiture or re-entry clause, and exactly what it covers. If the lease is silent, forfeiture is off the table and you will need to consider other remedies — a damages claim, or for rent arrears, pursuing the tenant through the county court.
2. Identify the breach and avoid waiver. Pin down precisely what has happened and when the landlord became aware of it. From that moment, avoid anything that suggests the lease is still treated as continuing, such as demanding or accepting rent.
3. Work out which route applies. Rent arrears do not need a section 146 notice; any other breach does. Getting this wrong at the outset can make the whole process defective.
4. Check whether the extra residential protections apply. For a long residential lease, confirm whether the breach has been admitted or needs to be determined by the First-tier Tribunal or a court before any notice can be served, and whether arrears clear the £350 / 3-year threshold.
5. Take possession by peaceable re-entry or court proceedings. Peaceable re-entry is only lawful for unoccupied commercial premises; an occupied dwelling always needs a court order. Court proceedings are slower but give a clearer, more defensible outcome, and are usually the safer route where the position is contested or the stakes are high — including where the tenant might later renew or dispute the lease.
6. Expect an application for relief. Build the possibility of a relief application into your planning from the outset, particularly for rent arrears, where relief is granted readily once the tenant pays what is owed.

This guide provides general information about lease forfeiture in England and Wales. It is not legal advice and is not a substitute for advice tailored to your specific circumstances. The law described was accurate as at August 2026 and is subject to change — always check GOV.UK and legislation.gov.uk for the most current position.

Last reviewed: August 2026 by a non-practising solicitor · Next review due: August 2027 or on legislative change.