Frightened of forfeiture - is it all about to change?

Forfeiture laws are complex and archaic. Giving advice on forfeiture law is therefore likely to be a time consuming process for the lawyer, and a costly one for the client, whether the landlord or the tenant.

Good news...The Law Commission has published a report recommending the simplification of forfeiture law. The recommendations appear to achieve a balance between the interests of landlord and tenants, and even help subtenants and mortgagees.

Proposed changes include:

		Giving landlords the right to forfeit in the event of "tenant default" - no express right to forfeit in the lease is required as is currently the case;
		Affording landlords the ability to terminate for serious and persistent breaches even where they have been rectified;
		Ensuring that tenants understand the consequences of default before the landlord can commence formal proceedings;
		Abolishing the landlord's right to take physical possession (peaceable re-entry);
		Abolishing waiver - landlords need not fear waiving breach by accepting rent;
		Imposing an obligation on landlords to enforce within six months of default - rights to terminate are now "use or lose";
		The creation of a fast-track procedure for straightforward cases;
		Abolishing the concept of "relief", but several practical remedies will be available to the court; and
		An obligation to advise mortgagees and subtenants before proceedings commenced.

The government will be digesting the Law Commission report as you read this e-update. Will it be minded to cast aside years of complicated law and adopt a streamlined approach that should appeal to both landlords and tenants? Taylor Wessing e-updates will keep you up to date with developments.

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