Breach of Covenant and Right to Re-entry

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    Breach of Covenant and Right to Re-entry

    Dear Sirs,

    If a commercial lease holder is thought to be in breach of one of their covenants, ie suspected of sleeping there on occasion (though they are actually working through the night), can the superior lease holder simply exercise their right to re-entry (ie forfeit lease) as per the lease asserting the belief of use for sleeping, or do they need to give a warning first to make such a process legal? What are the steps involved please given permitted hours are 24/7.

    Thank you in advance for any advise.

    #2
    I don't know about forfeiting. However, can you get some proof?

    I had a similar thing in a large office I let to an estate agent. One day, walking past the rear windows, I noticed there were beds set up. Questioning my tenant, he said he was just storing furniture there. 'In that case', I said, 'I won't expect to see sheets on the beds.'

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      #3
      You need to serve a section 146 notice on the tenant before taking action. The basics are explained here: http://www.darlingtons.com/site/comm...es/forfeiture/

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        #4
        The property is on a 999 year lease (virtual freehold) so if the superior leaseholder gains right to re-entry, the sublease holder will loose all their purchased property. Surely it cannot be that easy ... would they simply not just say that they were not sleeping during those times?

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          #5
          It certainly is not. I did though answer the question asked. The chances of forfeiting a 999 year lease at a ground rent (if that is what is payable) are pretty remote. Even where a full rent is payable the law leans against forfeiture and the tenant or any sub-tenant can apply for relief against forfeiture. And, as you say, you actually need to prove the breach.

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