Forfeiting a commercial lease - can a notice suffice?

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    Forfeiting a commercial lease - can a notice suffice?

    Hello,

    I have a tenant on a commercial lease, but the property is residential and fully sublet.

    The tenant, a company, does not occupy the residential property.

    I understand to forfeit a commercial lease, I need to issue proceedings or physically re-enter the premises - this is for non-payment of rent.

    However, since I am not seeking eviction of the actual occupiers (the residential tenants i.e. my subtenants) and all I want is to forfeit the tenancy with the company, can I:

    Just send a notice saying the lease has terminated due to non-payment of rent under clause XXX?

    Possession proceedings: I don't want possession of the property just yet

    Re-enter: I can't because their are residential occupiers

    Or do I just issue proceedings to properly forfeit the lease and then take over management of the residential tenants?

    Thanks

    #2
    For background to "Two steps behind"'s question see his earlier thread with much more info....
    https://forums.landlordzone.co.uk/fo...the-fixed-term

    I am legally unqualified: If you need to rely on advice check it with a suitable authority - eg a solicitor specialising in landlord/tenant law...

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      #3
      There are only two ways to forfeit a tenancy: by re-entry or by proceedings.

      Comment


        #4
        Thanks for clarifying that.

        Via proceedings: at what point exactly is the Tenancy forfeited?

        When the claim form is submitted at Court

        or

        When the Court processes and serves on the defendant?

        Thanks

        Comment


          #5
          Strictly (and assuming the wording of the forfeiture clause and the court application is correctly phrased) the lease is forfeited on the date of service. However, the landlord is not entitled to possession until an order for possession is made. Once the order is made it is deemed to take effect on the date of service. That would seem to suggest that once proceedings are served (a) the landlord cannot change his mind (b) the tenant is entitled to treat the lease as at an end (c) no further rent is due (though mesne profits may be).

          Comment


            #6
            You say you have a tenant on a commercial Lease, but the subject property is residential - then you have a residential Lease. Whether its Commerical/Residenital is determined by the subject property not the structure of the tenant. Sounds like the tenant has unlawfully breached a term of the tenancy - subletting. This should trigger the service of a Section 8 Notice and then Claim for Possession in the County Court. don't think you can forfeit a residential tenancy, which is what it appears to be from what you've said

            Comment


              #7
              LondonLad2019,

              OP said the tenant is a company. A tenancy where the tenant is a company cannot be assured. You can't serve section 8 Housing Act 1988 notice if the tenancy isn't assured. (Well, you can give it, it just has no legal effect whatsoever...)
              I am not a lawyer, nor am I licensed to provide any regulated advice. None of my posts should be treated as legal or financial advice.

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