Commercial Disputes

How to evict a commercial tenant

If you are a landlord of a commercial property, you may find yourself in the circumstances where you need to evict a tenant and take back possession of your property.

21 Jan 2022

Team name
Holly Minney

Holly Minney

This area of the law can be complicated – your best route forward will depend on your specific circumstances and the terms of any lease you have in place. In this article, we look at some of the most common reasons for evicting a commercial tenant and what you can do.

What is forfeiture in commercial property?

Forfeiture is the right of a landlord to regain possession of a property where the tenant has breached the terms of the lease. The right of forfeiture must be included in the lease. However, landlords must be careful to establish that a breach has arisen. If a lease is forfeited where the right to forfeit has not been established, the tenant may be able to bring a claim for wrongful forfeiture.

Can I evict a tenant if they have not paid the rent?

In response to the Covid-19 pandemic, the rules around evicting commercial tenants for non-payment of rent have changed. To protect businesses forced to close during the pandemic, the government imposed a moratorium on commercial landlords evicting tenants who were unable to pay their rent until March 2022. In addition, a new code of conduct came into effect on 9 November 2021 and applies to all commercial leases held by businesses with rent arrears caused by the impact of the pandemic. Landlords are encouraged to come to an agreement with tenants about rent arrears rather than begin eviction proceedings.

Regaining possession by forfeiture

If a commercial tenant has not paid rent for the premises, you may be able to regain possession of the property by forfeiture. However, the process can be complicated to understand, and it is essential that you do not take action which may jeopardise your position. We would recommend discussing your specific circumstances with a solicitor before exercising your rights.

Can I evict a tenant if they have breached the terms of their lease?

If your tenants have breached any terms of the lease, you are required to serve a 146 notice before you can take action to reclaim possession of the property. This notice will be served by your solicitor to all relevant parties which includes the tenant, any subtenants, and your mortgage provider. The notice will set out clearly the details of the breach as well as any requirement to take remedial action or to pay compensation.

If the tenant has breached the repair condition clause, you may be required to offer the tenant the opportunity to claim statutory protection. If the tenant decides to do so, they must make this known within 28 days of receiving the 146 notice. The consequence for landlords is that they must seek permission from the court before taking any further actions.

M&P Commentary

Holly Minney, Head of Dispute Resolution, said:

“The pandemic has hugely affected Landlord abilities to remove tenants from commercial premises. The new code continues to restrict the actions that Landlords are able to take against arrears incurred during the pandemic, if you wish to assess your options please contact our team to discuss your position.”

OUR CLIENTS SAY ABOUT US

Ranked highly in Romford and Brentwood for solicitor firms

Family
The service I received from Allison was exceptional. Always highly professional and informative.
Virginia
Wills
Mullis and Peake are very efficient, professional and friendly company to deal with. Excellent service throughout.
Brian
Employment
Excellent, swift service from Esther at Mullis & Peake. Showed clear expertise in her field & walked me through everything patiently & thoroughly.
Dan
Company and Commercial
I found the service provided was excellent from start to finish, with our requirements met in a timely manner throughout.
Gary
Wills
Staff very helpful and friendly. Trudi was easy to talk to and to understand the procedure.
Pamela
Dispute resolution
We contacted Martyn to deal with a sensitive Will dispute and we can’t thank him enough for his commitment and hard work.
Salena
Residential Property
Very prompt. Experienced. Expert. Friendly.
Trevor
Commercial Property
Excellent service and far quicker than previous negotiations using a different solicitor.
John
Family
At all times I was kept informed about the progress of the case and everything was completed in a timely fashion.
Melanie
Personal Injury
Martyn undertook and guided me through the lengthy process [of a personal injury case], and after much work, achieved a successful result.
Shirley

Related News insights

Legal, Residential Property, Residential Property
Selling your property? There are some documents you may need to find
Employment Advice, Legal, Employment Advice
Flexible working requests – changes from April 2024
Dispute Resolution, Legal, Alternative Dispute Resolution
What Is A Litigation Friend?
Legal, Personal Injury, Personal Injury
A Comprehensive Guide to Litigating Workplace Injury Claims in the UK