Section 146 Notice UK 2026 — Forfeiture of Residential Long Leases, CLRA 2002 Restrictions, and Relief

LPA 1925 s.146 — the forfeiture notice requirements

A valid Section 146 notice must comply with specific formal requirements:

• Content of the s.146 notice: The notice must specify: (1) the particular breach complained of; (2) if the breach is capable of remedy, require the lessee to remedy the breach; and (3) if the landlord requires compensation, require the lessee to pay a reasonable sum in compensation for the breach. A notice that fails to specify the breach with sufficient particularity, or that fails to require remedy of a remediable breach, is invalid
• Remediable vs irremediable breaches: Whether a breach is remediable depends on its nature. Most breaches are remediable — failure to repair, subletting without consent (in many cases), and breach of use restrictions. An irremediable breach (for example, conducting criminal activity at the premises, or a breach that has caused irreversible harm) does not require the notice to demand remedy — but the landlord must still serve the notice. The time allowed for remedy must be reasonable — typically at least 3 months for repair obligations
• Service of the s.146 notice: The notice must be served on the lessee and on any mortgagee who has notified the landlord of their interest. A mortgagee who has given notice of their interest is entitled to apply for relief from forfeiture independently of the lessee. Service by registered post to the lessee's last known address is effective under s.196 LPA 1925
• Waiver of the right to forfeit: A landlord who accepts rent (or any sum) from the lessee after becoming aware of the breach, or who takes any act recognising the continued existence of the lease, waives the right to forfeit for that specific breach. A landlord who issues a s.146 notice must not accept rent thereafter — any receipt of rent between notice and forfeiture waives the right. Landlords should return any rent received after issuing a s.146 notice
• Not applicable to ASTs: Section 146 LPA 1925 applies to long residential leases (typically 21+ years at a low ground rent) — not to assured shorthold tenancies governed by the Housing Act 1988. A landlord seeking possession under an AST uses Section 8 (and formerly Section 21) notice procedures — not s.146 forfeiture

CLRA 2002 s.168 — the residential long lease restriction

The most important restriction on residential long lease forfeiture is contained in s.168 of the Commonhold and Leasehold Reform Act 2002:

• Section 168 CLRA 2002 — FTT determination required first: For residential long leases, a landlord cannot serve a s.146 notice in respect of a non-rent breach unless and until: (a) the lessee admits the breach; OR (b) a court or the First-tier Tribunal (Property Chamber) has determined (in separate proceedings) that the breach has occurred. This means that for a residential long lease, the landlord must first bring proceedings in the FTT to establish that the breach occurred before they can even serve the s.146 notice — let alone forfeit the lease
• FTT breach determination proceedings: The landlord applies to the FTT (Property Chamber) for a determination that the lessee has breached a particular covenant. The FTT hears evidence from both sides and determines whether the breach occurred. If the FTT finds in the landlord's favour, the landlord can then serve the s.146 notice. This two-stage process can take 12-24 months from initial FTT application to eventual forfeiture
• Section 169 CLRA 2002 — no forfeiture for arrears below the threshold: A landlord cannot exercise a right of re-entry or forfeiture for non-payment of service charges, administration charges, or rent unless: (a) the amount owed is more than £350; AND (b) the amount (or any element of it) has been outstanding for more than 3 years. Below either threshold, forfeiture for non-payment is prohibited. This prevents freeholders from using forfeiture as a threat over disputed service charge amounts
• Service charge disputes and forfeiture: Service charge disputes are a common trigger for forfeiture attempts. A leaseholder who disputes a service charge demand should know that under s.27A(4) Landlord and Tenant Act 1985, a leaseholder is not obliged to pay a disputed service charge — and under s.169 CLRA 2002, the landlord cannot forfeit the lease for non-payment unless the charge has been determined by the FTT to be payable and has been outstanding for over 3 years and exceeds £350
• CLRA 2002 s.168 does not apply to commercial leases: The s.168 restriction applies only to 'long residential leases' as defined. Commercial leases are not subject to the FTT determination requirement — a commercial landlord can serve a s.146 notice immediately upon discovery of a breach

Relief from forfeiture — LPA 1925 s.146(2)

Even after a valid s.146 notice has been served and forfeiture proceedings issued, the lessee has a statutory right to apply for relief:

• Section 146(2) LPA 1925 — right to apply for relief: Where a landlord issues forfeiture proceedings (or peaceably re-enters) for a non-rent breach, the lessee may apply to the court at any time before the landlord has physically re-entered the property for relief from forfeiture. The court has a wide discretion to grant relief, typically on terms that the lessee remedies the breach and pays the landlord's costs
• Factors in the court's discretion: In deciding whether to grant relief, the court considers: the nature of the breach (was it deliberate?); whether the breach is remediable and has been remedied; the lessee's conduct throughout; the value of the lease (a valuable 99-year lease is much more likely to receive relief than a short-term lease); the hardship to the lessee and any sub-lessees; and the landlord's conduct
• Relief for sub-lessees and mortgagees: A sub-lessee or a mortgagee of the lessee's interest can also apply for relief from forfeiture, even if the lessee cannot obtain relief. The sub-lessee or mortgagee may be granted a new lease on the same or similar terms directly from the landlord. A mortgagee who has given notice of their interest to the landlord must be served with the s.146 notice and the forfeiture proceedings
• Peaceable re-entry: A landlord can forfeit without going to court by peaceably re-entering the premises (changing the locks when the premises are unoccupied). However, for residential property, the Protection from Eviction Act 1977 s.2 makes it a criminal offence to re-enter residential premises except by court order — peaceable re-entry is therefore not available for residential long leases while the premises are occupied by the lessee
• Practical advice: Relief from forfeiture is granted in the vast majority of well-conducted cases. A lessee who remedies the breach after a s.146 notice and pays the landlord's reasonable legal costs will usually obtain relief. This makes forfeiture a slow and expensive process for landlords — the threat of forfeiture is often more valuable than the remedy itself

Forfeiture for rent arrears — special rules

Forfeiture for non-payment of rent is governed by different rules from forfeiture for other breaches:

• No s.146 notice required for rent: A s.146 LPA 1925 notice is not required where forfeiture is sought for non-payment of rent (as opposed to other covenants). The landlord can issue forfeiture proceedings (or peaceably re-enter where applicable) for rent arrears without first serving a s.146 notice. However, a s.146-equivalent demand for rent must often have been made first
• CLRA 2002 s.167 and s.169 threshold restrictions: Under ss.167-169 CLRA 2002, a landlord of a residential long lease cannot exercise a right of re-entry or forfeiture for non-payment of rent (or service charges or administration charges) unless: the amount outstanding exceeds £350; AND the amount (or part of it) has been unpaid for more than 3 years. Both conditions must be met — below either threshold, forfeiture for non-payment is prohibited
• Relief from forfeiture for rent arrears: Where forfeiture for rent arrears is claimed in court, the lessee can obtain relief as of right (under the Common Law Procedure Act 1852 s.212) by paying all arrears and costs at or before trial. After judgment, relief is available under s.146(2) LPA 1925 within 6 months of forfeiture. A lessee who pays the arrears in full obtains an automatic right to have the lease reinstated
• Statute of Limitations: A landlord's right to forfeit for non-payment of rent is subject to the Limitation Act 1980 — the landlord cannot forfeit on the basis of rent arrears that became due more than 6 years before the forfeiture action (12 years for specialty debts)

Frequently asked questions