Lease determination and forfeiture

Lease determination and forfeiture

The nuclear option! How to get my property back?

Is lease determination the right answer for me?

The landlord may have a clause or provision within the lease governing the use of lease determination or forfeiture with their commercial tenant – we can check your lease to determine whether this is a viable option.

The option of lease determination is often ill-advised due to the risks associated with this method, primarily a claim of trespass can occur and there are different equitable reliefs available. Although there are associated risks that can leave the enforcement company and the landlord open to potential liability, this option is unparalleled in its effectiveness and speed. 

Recover costs or get the whole building back?

If a lease determination is not viable, the commercial rent arrears recovery (CRAR) route combined with a possession order is an option. An important note: if getting the building back to renovate or rent to a new tenant is important, then a lease determination is almost always the best route. 

Firstly, we must check whether the building is in physical occupation – as it is an offence to threaten violence to a secure entry when those inside are opposed to your actions. If the building is unoccupied we can take possession as your agents to regain possession and secure the building. This process ends the lease and therefore means the property can be re-let. Then a separate claim for damages can be made to recover the outstanding rent sum from the previous occupier. 

This method is most effective where it is likely that no rent will be paid. However, it is worth noting that goods and chattels – i.e. stock, goods and property cannot be disposed of. It is all too common for tenants to claim impropriety on the part of the landlord. We recommend that we make arrangements directly with the tenant.