Renters' Rights Act 2025, Phase 1 commencement
Transition readiness pack
England

Lease Forfeiture

Relief From Forfeiture UK — Tenant and Sub-Tenant Rights, s.146 LPA 1925, and Court Discretion

Statutory and equitable relief from forfeiture for commercial tenants — rent arrears (CCA 1984 s.138, 6-month rule), non-rent breaches (s.146(2) LPA 1925), sub-tenant and mortgagee applications (s.146(4)), conditions of relief, and landlord practical guidance.

13 min readUpdated 8 June 2026Last reviewed: 17 May 2026relief from forfeitureforfeitures.146 LPA 1925commercial lease

Relief for Rent Arrears — Statutory Right and 6-Month Rule

County Courts Act 1984 s.138: automatic right to relief if arrears paid before possession order takes effect. After possession given: apply within 6 months. Peaceable re-entry: no fixed period but 6-month analogy applied — apply promptly. Relief almost automatic on payment of all arrears, interest, and landlord's costs; conditions set by court.

Relief for Non-Rent Breaches — s.146(2) LPA 1925

Apply while landlord 'proceeding' under s.146 (before re-entry) or shortly after. Broad court discretion: seriousness of breach, whether remedied, value of tenant's interest, conduct of parties. Irremediable breaches (subletting without consent, permanent alteration, illegal use) — harder but possible to obtain relief. Conditions typically include remediation and payment of costs.

Sub-Tenant and Mortgagee Rights — s.146(4)

Sub-tenant or mortgagee can apply independently under LPA 1925 s.146(4) even if the head-tenant does not. Court can grant new direct lease to sub-tenant on same terms. Check for sub-tenancies and charges before forfeiting. Notify known incumbrancers of forfeiture proceedings.

Practical Guidance for Landlords

Do not waive after breach arises (no accepting rent). Consider CRAR as alternative to forfeiture for rent recovery. Do not re-let until 6-month relief window closes. Claim against guarantor or AGA simultaneously. After time limit expires or relief refused: forfeit is permanent — re-let, sell, or redevelop.

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