Forfeiture meaning

Options for landlord This checklist outlines the choices open to a landlord of commercial premises where the tenant is an insolvent individual, and explains the effect of restrictions operating under the various insolvency regimes. Where a landlord of a commercial property seeks to take steps against an insolvent tenant who is an individual, this checklist should then be referred to to confirm whether the landlord is permitted to pursue such action...

This Checklist sets out the matters a landlord ought to weigh up where a tenant faces insolvency, highlighting the options open to the landlord, such as Commercial Rent Arrears Recovery (CRAR), forfeiture, drawing on a rent deposit, and pursuing former tenants, guarantors and sub-tenants. It further addresses practical considerations for the landlord, including steps for securing and marketing the property, and contacting the insolvency practitioner. What type of insolvency scenario applies to the tenant? The remedies that can be exercised, and the limits that will bite, differ depending on the particular insolvency arrangement affecting the tenant. Each procedure brings distinct constraints and options. For a table summarising the restrictions, see Practice Note: Quick guide to landlord’s remedies in tenant insolvency. Has contact been made with the insolvency practitioner? It is vital to liaise with the relevant insolvency practitioner to assess the tenant’s position and to evaluate what, if any, prospect exists of outstanding sums being repaid, future rents being protected, or the tenant emerging from the...

Flowchart This flowchart outlines the requirements that need to be met to found a wrongful trading claim...

Checklist This Checklist applies when acquiring a long leasehold interest carrying a capital value, rather than a shorter tenancy at an open market rent, which is unlikely to attract any capital value. A purchaser’s solicitor should examine the landlord’s right to forfeit the lease, as in some situations particular forfeiture clauses can render a lease unacceptable as security to a lender and, in turn, unsuitable for purchase. Could the landlord exercise forfeiture upon the tenant’s insolvency? Where the landlord holds a right to forfeit on a tenant insolvency event, the property will not be acceptable security to a lender and is therefore inappropriate as an investment acquisition. Consequently, such a lease is neither appropriate for lending purposes nor for any purchase...

The US Department of Justice (DOJ) under the Trump administration has signalled it will deploy every instrument at its disposal—including the FCPA and the Anti-Terrorism Act (ATA)—to go after such targets. What, then, should compliance professionals understand about where FCPA and ATA risks intersect? At face value, the FCPA and ATA seem to address separate exposures: the FCPA tackles bribery of overseas officials, whereas the ATA centres on, among other matters, supplying material support to, or aiding and abetting, foreign terrorist organisations (FTOs). In reality, though, these hazards can collide—especially in markets with significant FTO presence—producing concurrent exposure. Background On 20 January 2025, President Donald Trump signed Executive Order No 14157, directing, among other measures, that specified international cartels and other transnational criminal organisations (TCOs) be classified as FTOs. Since February 2025, the US State Department has designated 11 organisations—primarily in Latin America—as FTOs. These listings carry meaningful consequences: the ATA imposes broad civil and criminal liability for furnishing material support to FTOs, and permits asset forfeiture...

In this issue: Key developments and horizon scanning Leasing property Property management Statutory compliance Investigating title Transferring property Additional property updates this week Daily and weekly news alerts Trackers Key developments and horizon scanning Further comment on general election manifestos The Royal Institution of Chartered Surveyors has issued commentary and analysis on the general election manifestos of multiple parties — Conservative, Liberal Democrat, Labour, Green and Reform — with particular attention to housing and planning. In parallel, the British Property Federation has published its take on the Labour Party’s manifesto, following earlier remarks on the Liberal Democrat and Conservative platforms. See: LNB News 18/06/2024 25, LNB News 14/06/2024 33 and LNB News 19/06/2024 14. Source: UK General Election 2024: What it means for housing, Land and Rural Manifesto overview, BPF comments on the Labour Party manifesto and Labour Manifesto - BPF Analysis. Leasing property Forfeiture—breach notification covenant The Tropical Zoo Ltd...

In this issue Key developments and horizon scanning Forfeiture Service charges Disputes and remedies Trespass and adverse possession LexTalk®Property Disputes: a Lexis®Nexis community Additional Property disputes updates Daily and weekly news alerts New and updated content Trackers Latest Q&As Key developments and horizon scanning The Leasehold and Freehold Reform Act 2024 secured Royal Assent on 24 May 2024, ahead of Parliament’s prorogation. The Department for Levelling Up, Housing and Communities confirmed this in a press release outlining the headline measures. See LNB News 28/05/2024 108. The Royal Institution of Chartered Surveyors has reacted to the passage of the LFRA 2024. RICS welcomes the Act for bringing greater certainty to leaseholders, landlords and the market, while noting lingering ambiguities and points of concern. See LNB 29/05/2024 75. Forfeiture A delay in returning rent did not amount to a waiver of the right to forfeit (The Tropical Zoo Ltd v The Mayor...

What is a CVA? A company voluntary arrangement (CVA) is a form of insolvency that permits a company to enter a binding agreement with its creditors to compromise unsecured debts or otherwise agree how its affairs are handled. The directors continue to run the business, under the oversight of an insolvency practitioner. Retailers, particularly those with extensive property portfolios, frequently adopt so‑called ‘landlord CVAs’ to reset rental commitments and shut loss‑making stores. This note outlines how property law and landlord and tenant considerations may emerge under such a CVA. It highlights provisions commonly included in CVAs and explains how they tend to work in practice. Nevertheless, each CVA will vary according to the precise terms proposed. It is therefore vital to examine the CVA proposal carefully to assess its effect on creditors. This note does not provide detailed guidance on the mechanics of approving and implementing a CVA. For Practice Notes addressing the CVA procedure, see: Company voluntary arrangements—an introductory guide The CVA proposal and...

The company establishing a SIP The company setting up a share incentive plan (SIP) does not need to be the same entity whose shares are allocated. However, both: the shares to be granted, and the connection between the SIP-establishing entity and the company whose shares are issued must satisfy the relevant legislative conditions. A SIP can be created either: solely for employees of the company that establishes it; or for those employees and for employees of other companies it controls (a group plan)—see Constituent companies below. In a group where the parent company’s shares are to be awarded, there are two options: the parent company may establish the SIP and extend it to the appropriate subsidiaries; or each subsidiary may establish its own SIP, provided the other statutory requirements concerning the shares under award are met—see Requirements for the shares. The advantage of each subsidiary operating its...

Following a series of court decisions and influential commentary, it is now widely accepted that, under English law, cryptoassets are neither things in possession nor things in action; instead, they comprise a distinct third form of property as data objects. The Proceeds of Crime Act 2002 (POCA 2002) establishes, in broad terms, two routes for the realisation of criminal proceeds: a conviction-based restraint and confiscation regime under POCA 2002, Pt 2, criminal in character and largely managed by the criminal courts under the Criminal Procedure Rules 2025 (CrimPR 2025), SI 2025/909; and a non-conviction based asset recovery regime under POCA 2002, Pt 5, operating within the civil jurisdiction. In England and Wales, at a high level, this results in: proceedings before the magistrates’ court, in its civil jurisdiction, for the freezing and forfeiture of (i) cash, (ii) high value personal property, and (iii) money in accounts held with financial institutions (FIs); and proceedings before the High Court for a...

LR1. Date of the lease [ enter the date in full format DD-Month-Year ] LR2. Title Number[s] LR2.1 Landlord's title number [ s ] [ the title numbers from which this lease is granted. Leave blank if unregistered ] LR2.2 Other title numbers [ existing title number [ s ] against which entries relating to LR9, LR10, LR11 and LR13 are to be made ] LR3. Parties to this lease Landlord [ enter landlord's name and address ] Tenant [ enter tenant's name and address ] Other parties LR4. Property Where this clause conflicts with any other part of the lease, then, for registration purposes, this clause shall take precedence. [ enter details of the Property ] LR5. Prescribed statements etc LR5.1 Statements prescribed under rules 179 (dispositions in favour of a charity), 180 (dispositions by a charity) or 196 (leases under the Leasehold Reform, Housing and Urban...

I, [ name ], of [ address ], do solemnly and sincerely state that: [ I have worked for [ name of owner ] (‘the Owner’) for [ number ] years. During the past [ number ] years I have occupied the role of [ description ]. I am completely familiar with the matters addressed in this statutory declaration. OR I am [ a partner in OR employed by ] [ name of firm ], a practice of [ chartered ] surveyors which, since [ date ], has been continuously engaged by [ name of owner ] (‘the Owner’) to [ manage and act as agent OR collect the rents and other income and pay the outgoings OR [ other ] ] for the Owner in connection with the Property (as defined below). I have personally [ carried out AND/OR supervised ] that work since [ date ]. I am thoroughly acquainted with the matters addressed in this statutory declaration. ] The Owner is the [...

TO WHOM IT MAY CONCERN FROM: [ insert name of landlord ], of [ insert landlord’s address ] (the ‘Landlord’) PREMISES: [ insert full address of the Premises ] LEASE: a lease relating to the Premises dated [ insert date of lease ], entered into between [ insert names of original parties to the lease ] Today, the Landlord has exercised rights of re-entry to the Premises in accordance with clause [ insert forfeiture clause number ] of the Lease and the locks have been changed. With effect from today, the Lease is forfeited and therefore at an end. If you have any enquiries concerning the Premises or any items remaining within it, please contact [ insert name and address of landlord or its managing agent ]. Date: Signed: [ insert name of Landlord/agents acting on behalf of Landlord ] [ for and on behalf of the Landlord ]...

If a lease was granted at undervalue, you are the 3rd owner, and you knew it was at undervalue, if creditors ask for an order returning the property to the original owner you cannot claim relief? Transactions at an undervalue (TUVs) are regulated by the Insolvency Act 1986 (IA 1986). The relevant provisions are: sections 238, 240 and 241 of the IA 1986 for companies sections 339 to 342 of the IA 1986 for individuals These powers are available to trustees in bankruptcy, liquidators (in both compulsory and voluntary liquidations), and administrators. They permit the office-holder to review dealings made by the insolvent person or company in the lead-up to insolvency and to assess whether assets should be recovered for the insolvent estate. In particular, an order under: section 241 of the IA 1986 (for companies), or section 342 of the IA 1986 (for individuals) cannot be made against the other party to a...

This Q&A This Q&A explores the steps administrators should take to contest a landlord’s attempt to forfeit a lease by peaceable re-entry, carried out unaware of an interim moratorium triggered by lodging a notice of intention to appoint administrators (NOI). An NOI is to be lodged by the directors or the company in advance of making an out of court appointment pursuant to Schedule B1, paragraph 22, of the Insolvency Act 1986 (IA 1986). This Q&A does not address a case where no NOI has been lodged. Where a company or its directors intend to appoint an administrator via the out of court route, they begin by filing an NOI, which imposes an interim moratorium under IA 1986, Sch B1, paras 44(2), 44(4). After the NOI is placed before the court, notice must also be served on the ‘prescribed persons’, including any party known to have levied distress against the company or its assets (Insolvency (England and Wales) Rules 2016, SI 2016/1024, r 3.23(4); IA 1986, Sch B1, para...

Part II of the Landlord and Tenant Act 1954 (LTA 1954) Part II of the LTA 1954 confers security of tenure on business tenants unless its requirements have been contracted out. As a result, a commercial lease does not lapse by effluxion of time; instead it continues as a statutory tenancy until it is brought to an end in accordance with the LTA 1954, or when the court grants a new lease on the application of either the landlord or the tenant, or when the lease is terminated by surrender or by forfeiture under the scheme set out therein in full...