Lease forfeiture

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  • Lease forfeiture

    I hold two Legal Charges- restrictions- (Court ordered and Land Registered) on the Lease purchased by and held by a local Publican (private residence above). The Landlord has now vacated the premises and I have had notice from ?????????? Inns plc (subsiduary) that ' the lease holders are in breach of their covenant to pay rent and are in arrears, accordingly ?????????? Inns intend to foreit the lease their main Comapny. Upon possession they will apply to the Land Registry to have the title cancelled'.
    Am I right in saying that they must have my consent (which will only be given if the monies are paid) before the Land Registry will consider cancelling this lease title.???
    Thanks for any advice in advance,
    Diphead

  • #2
    It depends what the lease says. Some leases have provisions in the forfeiture clause that require the landlord to give any chargee notice before forfeiting and which allow the chargee to step in and remedy the breach to avoid forfeiture. In the absence of any such provision the landlord can proceed to forfeit. You do though have the right to apply to the court for relief against forfeiture. Relief is in the court's discretion. The court will weigh up the interests of landlord and chargee and is any event only likely to grant relief if the chargee is able to persuade the court that he will effectively step into the tenant's shoes and pay or provide security for the arrears and all future rent.

    You say you "hold two Legal Charges- restrictions- (Court ordered and Land Registered)". Do you mean charging orders?

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    • #3
      Hi Lawcruncher
      Yes, Charging Orders.
      Do you have any simple steps to applying for 'relief against forfeiture'?
      Many thanks
      Diphead

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      • #4
        Since I was never a litigator I am afraid I do not know the procedure. However, I suspect it may be a fruitless exercise. As I said above: "The court will weigh up the interests of landlord and chargee and is in any event only likely to grant relief if the chargee is able to persuade the court that he will effectively step into the tenant's shoes and pay or provide security for the arrears and all future rent." If you put yourself in the landlord's shoes, why should you be obliged to forego rent because the tenant got into debt and it was charged against the lease?

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