Forfeiture is one of the most serious steps a landlord can take under a commercial lease. It allows the landlord to end the lease following a breach, most often for rent arrears. In practice, this often happens without warning, with the landlord changing the locks and securing the premises.
Many commercial tenants assume that this brings the matter to an end. In many cases, it does not. Relief from forfeiture can restore the lease, but only if you act quickly.
What forfeiture means in a commercial lease
Forfeiture is the landlord’s right to terminate a commercial lease following a breach. The most common trigger is non-payment of rent.
Landlords often rely on peaceable re-entry, which allows them to take back possession without a court order by changing the locks. This is common in cases of rent arrears and can take place without prior notice.
Once forfeiture has taken place, the lease is treated as ended. To recover the premises, a tenant must apply for relief from forfeiture through the court.
Relief from forfeiture: what to do immediately
If you have been locked out of a commercial property, you should treat the situation as urgent. Delay increases both the cost of relief from forfeiture and the risk of losing the lease.
You should:
- Seek legal advice at once: Relief from forfeiture in a commercial lease is time sensitive. Early advice allows you to assess your position and act quickly.
- Do not attempt to re-enter the premises: Do not force entry. This can expose you to liability and damage your application for relief.
- Gather key documents: Locate the lease, any side letters, rent statements and recent correspondence.
- Confirm the arrears position: Identify the full amount due, including rent, interest and any additional sums.
- Check for waiver of forfeiture: If the landlord has demanded or accepted rent after the breach, this may affect their right to forfeit.
- Prepare for an urgent court application: Relief from forfeiture requires a formal application. In many cases, this should be made without delay.
What is relief from forfeiture?
Relief from forfeiture is a court remedy that allows a commercial tenant to recover its lease after forfeiture.
If granted, the lease is restored as if it had never ended.
The court will often grant relief where the tenant remedies the breach and compensates the landlord. However, relief from forfeiture remains discretionary. The court will look closely at timing, conduct and whether the tenant can meet the financial conditions.
The cost of relief from forfeiture
Relief from forfeiture in a commercial lease is not a negotiation. The court will require the tenant to put the landlord back in the position it would have been in had the breach not occurred.
This approach was confirmed by the High Court in Sik v Malik [2025] EWHC 383 (Ch).
As a condition of relief, the tenant was required to pay:
- all rent arrears
- interest on those arrears
- the landlord’s legal costs
- full rent for the period after re-entry, even though the tenant was not in occupation
The court refused to reduce these sums.
The position for commercial tenants is clear. If you want relief from forfeiture, you must be ready to pay in full. This often requires access to funds at short notice.
Timing: acting promptly is critical
Timing is one of the most important factors in any application for relief from forfeiture.
In cases involving rent arrears under a commercial lease, tenants are expected to act promptly. This usually means within days or weeks, not months.
For other breaches, there may be a longer period to apply, but delay will still count against you.
The court will consider:
- how quickly you acted after forfeiture
- whether you have remedied, or are ready to remedy, the breach
- whether the landlord has taken further steps, such as re-letting the premises
Delay increases the risk that relief from forfeiture will be refused, even where an application is technically in time.
Practical points for commercial tenants
Relief from forfeiture remains an important remedy in commercial lease disputes, but it operates within a strict framework.
Tenants should proceed on the basis that:
· urgent action is required following forfeiture
· full payment of arrears, costs and ongoing rent will be expected
· preparation and evidence will be needed for an application
· delay weakens your position and increases your financial exposure
Conclusion
Forfeiture of a commercial lease, particularly for rent arrears, can be concerning, especially where a tenant has been locked out of the premises. However, relief from forfeiture provides a route back.
The court’s approach is consistent. Relief will often be granted where the tenant acts quickly and meets the required conditions. There is little scope for delay or partial payment.
If you have been locked out of a commercial property, you should act immediately. Delay will increase both the cost of relief from forfeiture and the risk of losing the lease permanently.
Should you find yourself locked out of your business premises by your landlord, or have any queries in relation to relief from forfeiture of a commercial lease, please contact our Commercial Dispute Resolution team at commlit@lewisnedas.co.uk or via Lewis Nedas enquiries page or telephone 020 7387 2032.