Key Takeaways
- Relief from forfeiture following peaceable re-entry can restore a commercial lease after a landlord changes the locks, but the court decides whether relief is appropriate.
- For rent arrears, apply to the County Court within six months of re-entry. Missing this deadline can end that statutory route.
- Landlords generally need a section 146 notice before forfeiting for non-rent covenant breaches, but not for non-payment of rent.
- Act immediately. Record the lockout, preserve your lease and payment records, and consider an injunction before the landlord re-lets.
- Paying arrears does not automatically revive the lease. Courts assess delay, conduct, prejudice, future compliance, interest and costs.
- Tell subtenants, mortgagees and guarantors promptly, and get urgent advice where administration or another insolvency process affects the premises.
- Our solicitors can assess the forfeiture, prepare urgent evidence and seek relief or an injunction to protect your commercial premises.
- Go Legal is rated Excellent with over 300 five-star reviews and 5/5 on Trustpilot and Google, placing our solicitors among the best-reviewed litigation lawyers in England and Wales.
Can You Apply for Relief from Forfeiture Following Peaceable Re-Entry?
Yes. A landlord changing the locks on commercial premises does not always end the tenant’s rights. For rent arrears, section 139(2) of the County Courts Act 1984 gives a tenant six months from re-entry to apply to the County Court for relief from forfeiture. Delay within that period can still seriously weaken the application.
Relief is the court’s power to reinstate the lease as if the forfeiture had not happened, usually on strict conditions. Whether you obtain it depends on why the landlord re-entered, how quickly you act, whether you can pay what is owed, and what the landlord has done with the premises since.
Our London-based solicitors can urgently review your lease, assess whether the forfeiture was valid and advise on an injunction or court application. If your premises have been secured, call 0207 459 4037 or book a free consultation.
Can a Commercial Landlord Change the Locks Without a Court Order?
Yes. A commercial landlord may be able to retake premises by changing the locks without first obtaining a court order. This is known as peaceable re-entry. It is lawful only where the lease reserves a right of re-entry or forfeiture and the landlord retakes possession without a breach of the peace.
Peaceable re-entry is a commercial lease remedy. Residential tenants are protected by the Protection from Eviction Act 1977, which requires a court order, so residential occupation should never be assessed using commercial forfeiture principles. Even for business premises, it gives a landlord no free-standing right to lock a tenant out whenever rent is late or a dispute arises. The stated reason for re-entry decides which rules apply.
| Alleged breach | Key issue before re-entry |
|---|---|
| Non-payment of rent | No section 146 notice is required. After peaceable re-entry for non-payment of rent, the tenant may seek relief under section 139(2) of the County Courts Act 1984. |
| Breach of another lease covenant, such as repair, alterations, user or insolvency clauses | Under section 146(1) of the Law of Property Act 1925, the landlord must first serve a notice specifying the particular breach, requiring the tenant to remedy it where it can be remedied, and requiring compensation in money. |
The landlord’s conduct after learning of a breach can also defeat the forfeiture. Accepting rent, or corresponding as if the lease continues, may waive the right to forfeit for that breach. Waiver is fact-sensitive, and a landlord who accepts money “without prejudice” does not automatically preserve its forfeiture rights. The order of events, from breach to the landlord’s knowledge to payment, often decides the point, so keep every bank record, rent demand and email.
What Should a Locked-Out Commercial Tenant Do Immediately After Peaceable Re-Entry?
Preserve evidence, establish the legal basis of the re-entry and consider urgent court protection within the first 48 to 72 hours. Three questions shape everything that follows:
- Did the lease give the landlord a right to forfeit for the alleged breach?
- Is the alleged breach rent arrears or another lease obligation?
- Is the company in administration, liquidation, a CVA or a moratorium that restricts the landlord’s rights?
Gather and preserve:
- The signed lease, variations, licences and side letters.
- Photographs or video of the locks, notices and security measures.
- A note of the date, time and circumstances of the lockout.
- Rent demands, payment records and arrears correspondence.
- Any section 146 notice and your response.
- A record of stock, equipment, confidential material and business records left inside.
Notify subtenants, mortgagees, guarantors and insurers promptly. They may have independent rights to seek relief, and their interests affect how the court exercises its discretion. Avoid agreeing informal terms with the landlord before taking advice, because a hasty arrangement can undermine a later application.
Can an Urgent Injunction Stop Re-Letting or Alterations?
Speed matters most because of what the landlord can do next. Once a new tenant is in occupation, or the premises have been substantially altered, the prospects of relief fall materially. An injunction restraining the landlord from re-letting, altering or granting rights to third parties can hold the position until the relief claim is decided. The evidence should identify the immediate risk, such as:
- a proposed new letting;
- alterations that would prevent the tenant returning;
- removal or disposal of stock and equipment;
- loss of access to business records or confidential information.
An injunction is itself discretionary. The tenant must show a credible relief claim and real, immediate commercial harm.
Our commercial disputes solicitors can review the lease, notices and lockout evidence to assess whether urgent court action is needed.
How Long Do You Have to Apply for Relief From Forfeiture After Peaceable Re-Entry?
A tenant forfeited for rent arrears has six months from the date of peaceable re-entry to apply to the County Court. Section 139(2) allows the application “at any time within six months from the date on which the lessor re-entered”, and the court may grant any relief the High Court could have granted. In the County Court, that six-month period is a strict deadline in rent-arrears cases.
Which Relief Route Applies to a Commercial Lease Forfeiture Claim?
The route depends on the breach:
- Rent arrears: the County Court statutory route under section 139(2). The court “may, if it thinks fit” grant relief, so it is never automatic.
- Other covenant breaches: section 146(2) of the Law of Property Act 1925 lets the tenant apply for relief in the landlord’s action or in its own action. The court may grant or refuse relief having regard to the proceedings, the parties’ conduct and all the circumstances.
- High Court equitable jurisdiction: there is no strict six-month limit, but the court will have regard to the County Court period. Substantial delay without good reason significantly reduces the prospects of relief.
Whichever route applies, relief is discretionary. The court considers:
- the severity of the breach;
- the conduct of the tenant and the landlord;
- the tenant’s ability to comply in future;
- prejudice to the landlord;
- delay in applying;
- whether the premises have been re-let or third-party rights have been created.
How Do Rent Arrears and Other Lease Breaches Affect Relief From Forfeiture Following Peaceable Re-Entry?
The reason for forfeiture determines what the tenant must offer and the issues the court will examine.
What Happens If the Landlord Re-Entered for Rent Arrears?
In practice, the tenant must be able to pay all arrears, interest and the landlord’s reasonable costs, including bailiff and legal fees. A prompt application backed by evidence of funds significantly improves the prospects. The tenant should also be ready to explain any genuine dispute about the sum claimed, how future rent will be met and what will prevent a repeat default.
What Must a Tenant Offer for a Non-Rent Breach?
Where the landlord forfeited for a breach such as disrepair, unauthorised alterations or a breach of the user clause, the section 146 notice described above must have been served first. A tenant seeking relief must usually remedy the breach where possible, compensate the landlord for its loss and offer undertakings against recurrence. Some breaches may be irremediable after re-entry, such as a completed unlawful subletting or a breach causing stigma damage to the premises.
The landlord’s own conduct is also examined. This includes whether the re-entry was proportionate, whether any required section 146 notice was valid, and whether the landlord acted to prejudice relief, for example by rushing to re-let.
What Evidence, Costs and Conditions Matter in a Relief From Forfeiture Application?
A relief application succeeds on a clear legal case, a workable plan for future compliance and the ability to meet the court’s conditions.
What Documents Should a Tenant Give Their Solicitor?
The application is typically issued on a Part 8 claim form in the County Court, or in the High Court where the value or complexity of the lease warrants it. Evidence is given by witness statement exhibiting the key documents. Our solicitors will usually need:
- the complete signed lease, variations and licences;
- the landlord’s notices, emails and rent demands;
- bank records, a current arrears calculation and proof of available funds;
- evidence of disputed sums and negotiations;
- photographs and witness evidence of the re-entry;
- a valuation, if the premises have been altered;
- evidence of business interruption and customer commitments;
- a practical proposal to remedy any breach and comply going forward.
What Conditions Can the Court Impose If Relief Is Granted?
Relief aims to restore the tenant to its position before the forfeiture, not to hand either side a windfall. Under section 146(2), the court may impose terms concerning costs, expenses, damages, compensation, penalties or otherwise, including an injunction against a future similar breach. Typical conditions include:
- Payment of all arrears, interest (typically at the lease rate or judgment rate) and the landlord’s legal and professional costs.
- An undertaking to comply with the lease.
- Payment of the costs of the application.
- Sometimes, a security deposit or rent guarantee.
Costs exposure is real. If relief is granted on the usual terms, the tenant pays its own costs and the landlord’s costs of the forfeiture and the application. That can exceed £10,000 to £25,000 for a straightforward County Court matter, and significantly more in the High Court or where the claim is contested.
To discuss the evidence needed for a relief application, injunction or negotiated reinstatement, book a free consultation with one of our qualified lawyers.
When Is Relief From Forfeiture Likely to Be Refused?
Relief is most likely to be refused where the tenant delays without explanation, cannot remedy the breach, has a history of default or cannot show how the lease will work in future.
The leading illustration of delay is Keshwala v Bhalsod [2021] EWCA Civ 492, reported at 2021] 1 WLR 4004. The Court of Appeal held that a delay of nearly five months in applying for relief, combined with the landlord having re-let the premises 22 days before the application, weighed heavily against granting relief. The six-month window is a deadline, not an automatic entitlement.
The common pitfalls are:
- Unexplained delay: applying close to the six-month deadline, especially where the landlord has re-let or spent money preparing for a new tenant.
- Repeat default: persistent arrears despite previous relief. Keshwala itself involved a first forfeiture in 2015 and a second in 2018. A tenant with a history of default must explain what has genuinely changed.
- Irremediable breaches: breaches that cannot be undone, or no credible evidence of future compliance.
- Third-party prejudice: a new lease granted, premises substantially altered for a new occupier, or a subtenant or mortgagee in possession with conflicting rights.
- Insolvency without a credible proposal: a company in liquidation with no funds for arrears, no administrator’s proposal to adopt the lease, or a bankrupt tenant with no income to meet ongoing rent.
What Happens If the Tenant Is in Administration or Another Insolvency Process?
Insolvency can block peaceable re-entry, but the effect depends on the specific procedure.
During the administration moratorium, paragraph 43(4) of Schedule B1 to the Insolvency Act 1986 prevents a landlord from forfeiting by peaceable re-entry except with the administrator’s consent or the court’s permission. Section A21 of the Insolvency Act 1986 contains a parallel restriction where it applies. A re-entry made in breach of these restrictions may itself be challenged.
Insolvency also shapes relief. An administrator may adopt a lease that is valuable to the rescue or disclaim one that is onerous. Liquidators and trustees in bankruptcy can also disclaim. A tenant company seeking relief will normally need the office-holder’s support, or a credible exit from insolvency, and a realistic proposal to pay arrears and ongoing rent. In liquidation or bankruptcy with no funds, the tenant’s own application may be academic, but a subtenant or guarantor may still seek relief.
Can a Subtenant, Mortgagee or Guarantor Seek Relief?
Yes. Subtenants and mortgagees may apply independently under section 146(4) of the Law of Property Act 1925 for non-rent breaches, or at common law for rent arrears. The court may grant them relief even if the head tenant’s application fails. Peaceable re-entry of the head lease does not automatically terminate a sublease, but the subtenant loses its right to occupy, so it should apply urgently to preserve its interest.
A guarantor generally remains liable for arrears accrued up to forfeiture, and relief of the head lease may revive the guarantee. A former tenant may have been released under the Landlord and Tenant (Covenants) Act 1995 where the assignment took place after 1996, but may still face an overriding lease claim or liability under an authorised guarantee agreement.
Our solicitors can coordinate lease issues with insolvency proceedings where forfeiture affects directors, a business rescue or secured assets.
Frequently Asked Questions
Get Urgent Help With Commercial Lease Forfeiture
Being locked out after peaceable re-entry does not always mean your commercial lease is lost, but your options narrow with every week that passes. Re-letting, alterations and third-party rights can make reinstatement significantly harder, and the County Court route for rent arrears closes six months after re-entry.
Go Legal is a London-based commercial litigation law firm acting for individuals, directors, professionals and businesses across England & Wales. Our solicitors provide an urgent assessment of:
- the lease and its forfeiture clause;
- the landlord’s notices, correspondence and re-entry evidence;
- rent arrears, alleged covenant breaches and waiver arguments;
- whether to seek relief, an injunction or negotiated reinstatement;
- the impact of administration or another insolvency process;
- the interests of guarantors, lenders and subtenants.
We can also advise on your ability to meet the likely conditions of relief, including arrears, costs and future compliance, and act quickly where stock, records or business premises are at risk. Call us on 0207 459 4037 or book a free consultation with our commercial litigation team.
