Forfeiture of Leases

The forfeiture of leases can have devastating consequences for the leaseholder, which is why it’s important to resolve the situation swiftly. If you want to stop your property from reverting to the freeholder, get expert advice from HomeKeep Solutions now.

“I didn’t know where to turn for help when a repossession order was granted but your team was instrumental in stopping the repossession and helping me to keep my property.” – Neil S

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When Can a Lease Be Forfeited?

When you purchase a leasehold property, you’ll enter into a contract with the freeholder. If you fail to meet the terms of this contract, the freeholder may be able to repossess the property – otherwise known as ‘forfeiting the lease’.

There are strict rules surrounding the forfeiture of leases and a freeholder will only be able to repossess the property in certain circumstances. In most situations, for example, the lease must contain a specific forfeiture clause before a freeholder can attempt to repossess the property.

How to Deal with a Court Hearing

There are three main ways you can respond to a repossession court hearing:

However, forfeiture clauses can specify a wide range of breaches that give rise to the termination of the lease, such as:

  • Failure to pay rent
  • Breach of a covenant to keep the property in good repair
  • Failure to insure the property
  • Subletting the property
  • Not carrying out repairs by a specified date

People often assume that repossession only happens if the leaseholder fails to pay their rent on time, but this isn’t the case. If you fail to maintain the property or breach an agreement with your property management company, for example, this could be enough to trigger the forfeiture of the lease.

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Can You Stop The Forfeiture of Leases?

In most instances, the freeholder will need to apply to the courts or the First-tier Tribunal but there are procedures they need to follow. If a non-rent breach has occurred, for example, the freeholder must serve a section 146 notice of forfeiture and give the leaseholder an opportunity to remedy the breach.

Even if a freeholder has followed the appropriate procedures, it may be possible for the leaseholder to apply to the courts for relief from forfeiture. If you can pay off your arrears or remedy a non-rent breach, for example, the courts are likely to grant relief if they believe you will meet your contractual obligations in the future.

At HomeKeep Solutions, our experienced team can assess the terms of the lease and the attempts to forfeit the lease and determine what grounds you have to prevent the property from being repossessed. Leases are complex documents and the law surrounding the forfeiture of leases is even more complicated! With expert advice, however, you can increase your chances of keeping the property and resolve the situation as quickly as possible.

FAQ

If the lease contains a forfeiture clause and you breach the terms of the agreement, the freeholder can terminate the lease. However, if they have been aware of the breach for some time and accepted it, you may be able to argue that they have ‘waived their right’ to forfeit the lease and prevent them from repossessing the property.
The forfeiture of leases means that the property reverts back to the freeholder. Essentially, this means that you could lose your home or interest in the leasehold property if the freeholder’s forfeiture claim is successful. Due to this, it’s important to get expert advice quickly to prevent the lease from being terminated.

Yes. A freeholder can terminate the lease even if you purchased the leasehold property with a loan from a mortgagor, providing the lease contains a forfeiture clause and they follow the appropriate procedures. However, a mortgage lender won’t want to see the lease be forfeited as it affects their interest in the property. Therefore, they may attempt to prevent the forfeiture by remedying the breach, with the associated costs being added to your mortgage.

Our Reviews

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“I’m so grateful to the HomeKeep Solutions team for helping me keep my home and supporting me when I had nowhere else to turn. I was convinced my home would be repossessed but, thanks to you, I’m back on track and secure in my own home.”
Taylor P
“I thought I’d exhausted all my options and was doomed to failure but HomeKeep Solutions quickly resolved the situation and negotiated with my lender. Not only can I stay in my home, but I can face the future knowing that my property is no longer under threat of being repossessed. Thank you.”
Aidan B
“I was days away from eviction when I called HomeKeep Solutions and was convinced there was no hope but, to my surprise, you stopped the eviction and made sure I’d be able to stay in my home. Your friendly, professional advice made a world of difference during such a stressful period in my life, and I’ll never forget the help you provided.”
Lloyd S
“I was near breaking point by the time I called HomeKeep Solutions and I’m eternally grateful for the compassionate advice they gave me. Within days, their team had stopped my eviction and given me respite in the most difficult of circumstances. Now, I can look forward to a bright future – in my own home!”
Shirley L
“I can’t thank you enough for helping me keep my home! I’d had no luck trying to reason with my mortgage lenders, but the HomeKeep Solutions team acted quickly and negotiated a long-term payment plan that’s affordable and realistic. As a result, I’m no longer facing repossession, an enormous amount of stress has been lifted and I can begin enjoying life again.”
John O
“I didn’t know where to turn for help when a repossession order was granted but your team was instrumental in stopping the repossession and helping me to keep my property. I don’t know where I would be without you and I’m eternally grateful for your expert advice and knowledgeable support.”
Neil S

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