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Commercial Breach of Leasehold Covenant, Forfeiture and Vacant Possession Claims
Breaches of leasehold covenants can be challenging for both commercial landlords and tenants. Landlords often struggle to manage their commercial property portfolios when tenants are in breach of their lease obligations, while tenants can face difficulties responding to allegations of a breach of commercial lease agreement by their landlord. The consequences of a breach of leasehold covenant can vary depending on the nature and severity of the breach, and may ultimately lead to forfeiture of the lease.
It is commercially important to strike the right balance between protecting your rights, enforcing lease terms effectively, and maintaining long-term business relationships.
Alongside breaches of lease and forfeiture, both landlords and tenants may encounter wider vacant possession issues. Although vacant possession may seem straightforward, there are many procedural requirements and potential pitfalls that can affect a commercial lease, including the risk of a tenant failing to provide vacant possession at the end of a lease term.
At JMW, we help both landlords and tenants resolve issues arising from a breach of lease, forfeiture and vacant possession. Whether you are a tenant facing allegations of breaching a commercial lease, or a landlord seeking advice on your right to forfeit the lease, JMW’s property litigation solicitors can help. To speak to our team, call 0345 872 6666 or complete our online enquiry form to request a call back.
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How JMW Can Help
JMW’s Property Litigation team advises and represents both commercial landlords and tenants in disputes arising from a breach of leasehold covenant and forfeiture. We help clients understand their legal rights and obligations under commercial lease agreements, providing practical, cost-effective solutions to minimise disruption and protect their interests.
We can assist with the following:
- Breach of leasehold covenant: We advise landlords on the appropriate steps to take when a tenant breaches a commercial lease, including how to respond, how to serve a section 146 notice, and options to remedy the breach. For tenants, we can advise on the likelihood of a breach being established, potential damages for breach of commercial lease, and the available remedies.
- Forfeiture: We assist landlords on their right to forfeit a lease following breach, including the procedural requirements under the Landlord and Tenant Act and the practicalities of peaceable re-entry. For tenants, we advise on defending against forfeiture or applying for relief from forfeiture through court proceedings.
- Vacant possession: For tenants, we can provide advice on how to lawfully give up your leasehold premises with vacant possession. For landlords, we advise on the process for obtaining vacant possession from a tenant, including what to do when a tenant fails to vacate. We can also assist with wider vacant possession projects, such as site redevelopment or sale preparation.
At JMW, our experienced property litigation solicitors provide professional advice and clear guidance through every stage of the process. We specialise in proactive management, helping clients protect the value of their commercial property assets while maintaining positive landlord and tenant relationships.
Our team has extensive experience resolving complex commercial lease disputes for businesses and investors across multiple sectors, including retail, industrial, office and mixed-use developments. We offer practical, tailored advice aimed at achieving swift, commercially sound outcomes through negotiation, mediation, or court action, when required.
Meet the Team
JMW’s experienced team of property litigation solicitors specialise in resolving disputes arising from breaches of commercial leases, forfeiture, and vacant possession with a practical, commercially focused approach.
Case Study
What Is a Breach of a Commercial Leasehold Covenant?
When parties enter into a commercial lease, they each agree to perform specific obligations, which are recorded as leasehold covenants. These covenants often include obligations to pay rent, keep the premises in repair, and obtain consent for alterations. A breach of leasehold covenant occurs when either party fails to comply with those obligations in accordance with the lease terms.
A breach of commercial lease by a tenant may involve non-payment of rent, unauthorised alterations, or failure to maintain repair covenants. For landlords, a breach might relate to failing to meet obligations under the lease agreement.
The consequences of a breach of the lease depend on several factors, including (but not limited to) its severity and nature. Parties should seek professional advice on the implications of a breach of lease.
JMW’s property litigation team can advise both landlords and tenants on their rights, potential remedies, and the most effective way to resolve a dispute involving a breach of covenant.
What Is Forfeiture?
Forfeiture is the legal process whereby a landlord can bring a commercial lease to an end when a tenant is in breach of the lease, and the breach has not been remedied. The process for forfeiture depends on the nature of the tenant’s breach. For example, where the breach involves non-payment of rent or rent arrears, a landlord has different options to if the breach relates to other obligations. For other types of breaches, such as disrepair or unauthorised alterations, a landlord is usually required to serve a section 146 notice before taking further action.
Tenants may have the right to apply to the court for relief from forfeiture. This is a discretionary remedy where the court may reinstate the lease. When considering the remedy, the court may look at factors such as the seriousness of the tenant’s breach, whether the breach was deliberate, and whether damages or specific performance would provide an adequate remedy.
Landlords must also be careful not to waive their right to forfeit the lease. A landlord may waive their right to forfeit in a number of ways, including by acting in a way that recognises the continuation of the lease - for example, by demanding or accepting rent after becoming aware of the breach. When a landlord wishes to forfeit a lease, it is important that they act promptly and in accordance with the procedural requirements to preserve that right.
JMW’s property litigation solicitors regularly advise both landlords and tenants on forfeiture, relief from forfeiture, and claims relating to a tenant’s breach of covenant. We provide clear, practical advice to help clients protect their interests while maintaining compliance with all legal requirements.
What Is Vacant Possession?
When a commercial lease comes to an end, the tenant is usually required to return the premises with vacant possession.
Vacant possession can be a critical issue when exercising a break clause under a commercial lease agreement. Failure to provide vacant possession may prevent the break from taking effect, leaving the tenant liable for unpaid rent and other obligations under the lease.
For landlords, vacant possession is often necessary before redevelopment, sale, or granting a new lease. However, obtaining vacant possession can be complex, particularly when a tenant fails to vacate or leaves behind property or equipment.
JMW advises both landlords and tenants on all aspects of vacant possession, including claims relating to a tenant’s failure to vacate, the recovery of premises, and compliance with procedural requirements. We can also assist with larger vacant possession projects involving multiple commercial units or mixed-use developments.
What Is the Process of Instructing JMW?
Instructing JMW is a straightforward, user-friendly process designed to provide peace of mind and set clear expectations. The process of instructing JMW’s Property Litigation team is as follows:
- Initial discussion: When you contact us, we will discuss your property, lease, and the specific circumstances in which you require assistance, whether relating to a breach of leasehold covenant, forfeiture, or vacant possession.
- Assessment and strategy: Our team will work with you to understand your business and objectives, creating a strategy that works for all parties and sets out a clear approach to your breach of lease, forfeiture, or vacant possession matter.
- Costs and timescales: We will provide clear estimates of anticipated costs and timescales for the work. We recognise that timing can be critical in matters involving a breach of commercial lease or recovery of possession.
- Proactive file management: We act quickly on receipt of instructions, maintain regular communication, and provide concise, prompt, and practical advice throughout.
FAQs on Commercial Breach of Leasehold Covenants, Forfeiture and Vacant Possession Claims
- My tenants have raised a dispute over service charges and have stopped paying my demands. Can I stop providing services at the property?
Generally, a landlord’s obligation to provide services at a commercial property is not conditional on the tenant paying for them. However, this can depend on how the tenant's rights relating to service charge provisions are worded in the commercial lease agreement.
In some circumstances, a landlord may be able to demonstrate that a tenant’s breach or default has made the continued supply of services impossible. We can review the terms of your lease, assess whether the tenant’s non-payment amounts to a breach of leasehold covenant, and provide clear advice on your legal obligations and right to withhold or recover costs under the Landlord and Tenant Act.
- What is the usual process of a dispute raised for service charges and how much will this cost me?
We advise both commercial landlords and tenants to adopt a commercial and pragmatic approach to service charge disputes. In many cases, the most efficient and cost-effective way to resolve a dispute is through negotiation or mediation rather than formal court proceedings.
Our property litigation solicitors have extensive experience in resolving disputes arising from breaches of commercial leases, including service charge and rent arrears claims. We provide practical, commercial advice tailored to your circumstances and can explain the potential costs and options available, including fixed fees for certain work.
- What is the typical turnaround time?
We understand the importance of acting quickly when a commercial tenant breaches a lease. While specific timelines vary based on case type and complexity, we prioritise efficiency and proactive communication to complete transactions quickly and pragmatically.
- Can JMW advise both landlords and tenants?
We act for both commercial landlords and commercial tenants, which enables us to understand the perspectives and priorities on each side. This provides critical insights into likely negotiation tactics, challenges and solutions for cases involving a breach of commercial lease agreement, forfeiture, or vacant possession, whether we are dealing with landlord or tenant claims.
- Does JMW work with specific property sectors or asset classes?
We work across the full commercial property market, including shopping centres, retail parks, industrial estates, offices and mixed-use developments. Our solicitors have extensive experience advising on breach of leasehold covenant claims, commercial leases, and landlord and tenant disputes in a wide range of sectors.
- Can property disputes be resolved without litigation?
In many cases, property disputes can be resolved without going to court. Alternative dispute resolution methods such as negotiation or mediation can save time and costs in delivering an adequate remedy that suits the needs of both parties, while preserving relationships between landlords and tenants. However, if litigation becomes necessary, we will guide you through the process and provide professional advice at every stage.
- How much do JMW's services cost?
Our property litigation team offers both fixed fees and hourly rates. We will provide clear estimates of potential costs and timescales during your initial consultation. We recognise that cost certainty is important, particularly in breach of lease and forfeiture claims, and we aim to deliver cost-effective legal advice.
Get in touch with our expert property litigation team to learn more about how we can help you today.
Talk to Us
To find out more about how we can assist commercial landlords and tenants with breach of leasehold covenant, forfeiture or vacant possession claims, contact JMW’s property litigation team today. Call 0345 872 6666 or complete our online contact form to take the next step.