Commercial

ID #1004

Foreiting of Lease by peacable re-entry. My commercial tenant lives above the shop and has not paid his rent. Can I forfeit the lease?

Commercial Landlords see peaceable re-entry as a valuable device speeding up re-possession and avoiding court costs when they have a defaulting tenant. Most leases make provision for this, though a tenant can pay the arrears and apply to the court for relief.

Where a commercial tenant lives on the premises, ie mixed-use, on a single lease, quite common with commercial lettings, the law restricts the right of forfeiture through this means.

In Parabakaran v Patel 2006 the Court of Appeal ruled that to re-enter any part of a mixed-use premise would fall foul of the Protection from Eviction Act 1977.

Any lawful attempt at re-possession would therefore involve court possession proceedings, which in any case gives the landlord a greater degree of certainty of possession.

Also, the general rules on forfeiture through peaceable re-entry are under review by the Law Commission - http://www.lawcom.gov.uk/docs/cp174sum.pdf and http://www.lawcom.gov.uk/docs/tot_pba_lecture_091106.pdf

Note: never rely totally on these standard answers. Before taking action or not, always seek professional advice with the full facts of the case and all documents to hand. LandlordZONE.co.uk

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Last update: 2007-03-11 21:08
Author: LandlordZONE
Revision: 1.3

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