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Commercial Estate & Letting Agents

Breaches of the Lease Templates

During the term of a Lease it may also be necessary for the Landlord to raise with the Tenant issues such as late payment of rent or complaints about the Tenant’s behaviour. 

These Breaches of the Lease documents include Letters regarding rent arrears and other breaches of the Lease. The Letters range in severity from gentle reminders to final warnings.

The temporary Coronavirus Act 2020 restriction on forfeiture of business tenancies has expired. Do not treat it as a current moratorium; check any separate current statutory protection before acting.  

Commercial landlords and letting agents should check the Debt Respite Scheme (Breathing Space Moratorium and Mental Health Crisis Moratorium) (England and Wales) Regulations 2020 where the tenant is an individual, including a sole trader. Rent arrears are excluded as a 'non-eligible business debt' only if they were incurred in connection with the tenant's business, relate solely to that business, and, at the point of the application for a moratorium, the tenant is for the purpose of that business VAT-registered or a partner in a partnership. An individual tenant's arrears may therefore be protected even where the premises are commercial. During a valid breathing space, apply the statutory restrictions on creditor contact, interest, fees and enforcement and check the register.

Other documents may be needed during the term of a Lease. A wide variety of documents can be found in our Managing the Letting, Alterations, Assignments and Underletting folders.

Breaches of the Lease Templates is part of Property. Just £38.50 + VAT provides unlimited downloads from Property for 1 year.

Frequently Asked Questions

My commercial tenant has breached the lease. What should I do first? +
Identify the breach and act promptly. For most breaches other than rent, you cannot forfeit until you serve a section 146 notice under the Law of Property Act 1925 specifying the breach, requiring it to be remedied if it can be, and seeking compensation. Start with a clear warning letter. This sub-folder has letters from reminders to final warnings.
What is a section 146 notice and when do I need one? +
It is the formal notice a landlord must serve before forfeiting a commercial lease for a breach other than non-payment of rent. It must specify the breach, require it to be remedied within a reasonable time if it is capable of remedy, and require compensation. Only if the tenant fails to comply can you move to forfeit. This sub-folder's letters lead up to that step.
Can I forfeit the lease immediately if the tenant stops paying rent? +
Not without care. For rent arrears no section 146 notice is needed, but you must check the lease reserves a right of re-entry, avoid waiving the breach by accepting rent, and remember the tenant can apply for relief from forfeiture. Peaceable re-entry or court proceedings are the routes. This sub-folder's rent arrears letters help you escalate correctly.
My tenant is an individual and says they are in a breathing space. Can I still chase the arrears? +
Not while the breathing space lasts. Under the Debt Respite Scheme a qualifying individual debtor gets up to 60 days during which you cannot enforce the debt, charge interest or take enforcement action for arrears caught by the moratorium. Pause and check the register. This sub-folder's letters should not be sent during a valid breathing space.
Should I send a final warning before taking legal action? +
It is sensible. A clear final warning letter records that the breach continues, sets a deadline and states the consequences, which helps if the matter reaches court and often prompts the tenant to comply. It also shows you acted reasonably. This sub-folder has warning letters ranging from a gentle reminder to a final warning.
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