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Leasehold Law

Forfeiture of Residential Leasehold UK

CLRA 2002 s.168 requires FTT or court determination of any breach before a landlord can serve a s.146 notice on a residential long leaseholder. Ground rent arrears threshold (s.167), s.146 notice procedure, waiver of breach, relief from forfeiture, and why residential leasehold forfeiture rarely succeeds in practice.

10 min readUpdated 7 June 2026Last reviewed: 17 May 2026leaseholdforfeituresection-146ftt

Section 168 Requirement — FTT Determination First

CLRA 2002 s.168 (amending LTA 1985 s.168): a landlord of a dwelling cannot serve a s.146 notice for breach of covenant unless the breach has first been admitted by the leaseholder OR determined by a court, the First-tier Tribunal, or arbitration. This means the landlord must obtain a FTT determination before commencing formal forfeiture proceedings — a procedural gate that can add months or years.

Ground Rent Arrears — Section 167 Additional Protection

CLRA 2002 s.167: cannot forfeit for rent arrears unless (a) outstanding amount exceeds £350 AND (b) part of the sum has been outstanding more than 3 years. Both conditions must be considered. Leasehold Reform (Ground Rent) Act 2022: new long leases from 30 June 2022 must have peppercorn (zero) ground rent — s.167 mainly affects pre-June 2022 leases.

Section 146 Notice

Once a breach is determined/admitted, the landlord must serve a s.146 LPA 1925 notice: specify the breach; require remedy (if remediable); require compensation. Must allow reasonable time to remedy before commencing possession proceedings in the County Court.

Waiver of Breach

A landlord knowing of a breach who demands or accepts rent waives the right to forfeit for that breach. Even a letter demanding rent can constitute waiver. Stop all rent demands and acceptance immediately upon discovering a breach potentially justifying forfeiture, and take urgent legal advice.

Relief from Forfeiture

s.146(2) LPA 1925: County Court has very wide discretion to grant relief from forfeiture on terms (remedy breach, pay arrears, pay costs). Courts are extremely reluctant to allow forfeiture of a valuable long lease — relief is almost always granted. Forfeiture of a residential long lease almost never results in the landlord obtaining possession.

Frequently asked questions

Can I forfeit a residential long lease without going to court?+

No. CLRA 2002 s.168 requires a FTT determination (or admission) of the breach before a s.146 notice can be served. Possession then requires County Court proceedings. Peaceably re-entering a residential property to forfeit would be unlawful eviction.

What is the s.168 requirement?+

Section 168 of the CLRA 2002 provides that a landlord of a dwelling cannot serve a s.146 forfeiture notice unless the breach has been admitted by the leaseholder or determined by the FTT, court, or arbitration.

Can I forfeit for small ground rent arrears?+

Not if arrears are £350 or less AND have been outstanding less than 3 years (CLRA 2002 s.167). Since the Leasehold Reform (Ground Rent) Act 2022, new long leases must have peppercorn (zero) ground rent, so this mainly affects pre-June 2022 leases.

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