forfeiture by peaceable re-entry meaning

Tanfield (as executor of the Estate of Paul Watkins) and another company v Meadowbrook Montessori Ltd [2024] EWHC 1759 (Ch), [2024] All ER (D) 77 (Jul) What are the practical implications of this case? The court’s assessment of the respondent’s cross‑claim is especially significant for the following reasons: Forfeiture and the common law rules—the judgment sets out the arguments underpinning the company’s ‘strongly arguable case’ that a purported forfeiture by peaceable re‑entry was unlawful where no formal common law demand for rent was made before re‑entry and the lease did not waive the requirement for such a demand (see paras [75]–[84]). This element of the ruling serves as a useful reminder of the prior demand rules at common law which may bite where a proviso for re‑entry in the lease does not expressly dispense with the necessity for a formal rent demand. Practitioners should be alive to this, particularly if the lease is of some vintage (although many modern leases expressly dispense with the need...

This Practice Note sets out the limits on a landlord’s enforcement where a tenant faces insolvency in the most common situations. It addresses issuing court proceedings for rent or damages, taking action against guarantors or former tenants, seeking rent from subtenants, drawing down on a rent deposit deed, applying the CRAR procedure, forfeiture by peaceable re-entry, forfeiture through court proceedings, and serving notice on an insolvency practitioner requiring an election on disclaimer of the lease. For a general introduction to property insolvency see Practice Note: Quick guide to property insolvency. Restrictions on landlord remedies Bankruptcy Court proceedings for rent or damages: Not without the court’s leave (IA 1986, s 285(3)). Pursue guarantors/previous tenants: Yes, under IA 1986, s 281(7). Claim rent from subtenants: Yes, under IA 1986, s 281(7). Use rent deposit deed: Depends on the deposit structure. See Practice Note: Rent deposit deed—effect of insolvency. CRAR: Available where the tenant is undischarged, but only for six months’ rent accrued before...

The route to obtaining relief from forfeiture differs widely with the type of default. This Practice Note specifically addresses relief from forfeiture arising from rent arrears. For guidance on seeking relief for any alternative breach, refer to Practice Note: Relief from forfeiture for breach of covenant. Which interests does relief from forfeiture apply to? Beyond leases, relief may extend to certain other relevant proprietary interests. Consult the guidance in Practice Note: Relief from forfeiture for breach of covenant—Which interests does relief from forfeiture apply to? Jurisdiction Historically, the courts have exercised an inherent jurisdiction to grant relief from forfeiture for non-payment of rent. In some areas, this equitable jurisdiction has been supplanted by statute, including in relation to breaches other than non-payment of rent (see Practice Note: Relief from forfeiture for breach of covenant—Jurisdiction to grant relief in respect of breaches of covenant (other than non-payment of rent)). For more detail, see Commentary: Relief from forfeiture for non-payment of rent: Hill and Redman's Law of Landlord...

This Practice Note examines the interplay between the statutory moratorium in Schedule B1 to the Insolvency Act 1986 (IA 1986), which stays most creditor or third-party steps against a company in administration, and a landlord’s ability to exercise its proprietary right of forfeiture under the company’s lease. For an outline of the moratorium that applies on administration, see Practice Note: The moratorium in administration. This Practice Note is concerned with obtaining relief from the moratorium so that a landlord may forfeit a lease; it does not cover other enforcement routes, eg commercial rent arrears recovery. For more detail, see Practice Note: Recovering rent arrears. Introduction to forfeiture Where a tenant does not pay rent under a lease, the landlord may seek to determine the lease either by applying to the court or by peaceable re-entry. Ordinarily, the landlord’s forfeiture powers arise from the lease, and a well-drafted lease will include express forfeiture provisions. Alternatively, the landlord may rely on an implied right of forfeiture if the tenant disputes...

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 ]...

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...

Forfeiture Forfeiture is a contractual mechanism that permits a landlord to terminate a tenancy when the tenant breaches the tenancy terms. This can be achieved either by peaceable re-entry to the property or by starting court proceedings. The tenant retains the ability to seek relief from forfeiture. This Q&A does not clarify whether the lease in question is commercial or residential. For commercial lettings, a landlord cannot exercise forfeiture without first serving a notice under section 146 of the Law of Property Act 1925, setting out the breach and requiring the tenant to remedy it. However, no section 146 notice...

Peaceable re-entry This enquiry considers how a landlord may carry out a peaceable re-entry. The discussion is confined to a specific point, on the footing that a notice pursuant to section 146 of the Law of Property Act 1925 has already been served. It is further taken as read that the right to forfeit has accrued, has not been waived, and that the lease reserves a right of re-entry. Steps have been taken to confirm the premises are empty. That precaution matters because it is a criminal offence for A to use violence to gain entry to premises when B is within, objects to the entry, and A is aware of that fact (section 6 of the Criminal Law Act 1977 (CLA 1977)). The narrow point presented is what amounts to peaceable re-entry. Peaceable re-entry is, perhaps, something of a misdescription...