Commercial Property and Peaceable Re-Entry:
Commercial Property and Peaceable Re-Entry: What Landlords Need to Know
Commercial landlords may sometimes face a situation where a tenant has stopped paying rent, breached the lease or abandoned the premises. In those circumstances, one option that may be available is peaceable re-entry, also known as peaceful re-entry.
Peaceable re-entry is a method by which a commercial landlord may take back possession of commercial premises without first obtaining a court order. However, it is a procedure that must be approached carefully. If carried out incorrectly, it can expose the landlord to claims from the tenant and create further legal and financial risk.
At Darren David & Co, we advise landlords and tenants on commercial property disputes, lease forfeiture, rent arrears and possession issues.
What Is Peaceable Re-Entry?
Peaceable re-entry is a process used by a commercial landlord to recover possession of premises where the tenant is in breach of the lease.
This usually involves the landlord physically re-entering the premises and changing the locks, often with the assistance of a certificated enforcement agent or locksmith. A notice is then usually placed at the premises confirming that the lease has been forfeited.
Peaceable re-entry is most commonly considered where:
The tenant has failed to pay rent
There has been a serious breach of the lease
The tenant appears to have abandoned the premises
The landlord wants to recover possession quickly
Court proceedings may be too slow or costly in the circumstances
Although peaceable re-entry can be quicker than court proceedings, it is not suitable in every case.
Forfeiture of a Commercial Lease
Peaceable re-entry is closely connected to forfeiture. Forfeiture is the landlord’s right to bring a commercial lease to an end because the tenant has breached the lease.
A landlord can only forfeit a lease if there is a valid legal basis to do so. This normally requires:
A forfeiture clause in the lease
A breach by the tenant
Compliance with any required notice procedure
No waiver of the right to forfeit
For non-payment of rent, a landlord may be able to forfeit without serving a section 146 notice, depending on the lease terms and circumstances. For other breaches, a section 146 notice will usually be required before forfeiture can take place.
When Can a Commercial Landlord Use Peaceable Re-Entry?
Peaceable re-entry may be available where the property is commercial and the lease permits forfeiture. It is commonly used where there are unpaid rent arrears.
However, before taking any step to re-enter the premises, the landlord should consider:
Whether the lease contains a forfeiture clause
Whether the tenant is actually in breach
Whether the breach gives rise to a right to forfeit
Whether a section 146 notice is required
Whether the landlord has waived the right to forfeit
Whether anyone is in occupation of the premises
Whether there is any residential element to the property
Whether there are goods or stock inside the premises
Whether the tenant may apply for relief from forfeiture
Peaceable re-entry should not be treated as a simple lock-changing exercise. It is a legal remedy with potentially serious consequences.
The Risk of Waiving the Right to Forfeit
One of the most important issues for commercial landlords is waiver.
A landlord may lose the right to forfeit if, after becoming aware of the tenant’s breach, the landlord does something that recognises the lease as continuing. This can include demanding or accepting rent.
For example, if a landlord knows that the tenant is in rent arrears but then demands the next quarter’s rent, this may amount to a waiver of the right to forfeit for the existing breach.
Waiver can be a technical issue, but it is often central to commercial lease forfeiture disputes. Landlords should therefore act carefully before corresponding with the tenant, accepting payments or taking enforcement action.
Where to Find Us
Darren David & Co Solicitors is based at 330A Ballards Lane, London, N12 0EY, in the heart of Finchley, North London. The office is open Monday to Friday, 9:30 AM to 5:30 PM, and provides a discreet, professional environment for confidential consultations.
Get in Touch
The firm understands that legal issues can be urgent and time-sensitive, which is why multiple channels of communication are available. You can reach the team in whichever way suits you best:
For a direct consultation to discuss your dispute, visit the Contact Us page to get in touch. With a focused practice, senior-level involvement on every matter, and a commitment to achieving the best possible outcome, Darren David & Co Solicitors is your dedicated partner in navigating the complexities of civil litigation.