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Commercial Property Management

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.

Due to the Covid-19 pandemic, there is a moratorium in place which prevents landlords from terminating a lease for non-payment of rent in England and Wales.  The moratorium is due to end on the 25 March 2022.  

Commercial landlords and letting agents need to be aware of The Debt Respite Scheme (Breathing Space Moratorium and Mental Health Crisis Moratorium) (England and Wales) Regulations 2020. These regulations may affect you if your tenant (an individual) is in problem debt.  These regulations prohibit you from chasing your tenant (and anyone who is jointly liable) for rent arrears, charging late interest and fees and taking any enforcement action for rent arrears caught by the moratorium whilst your tenant is in a 'breathing space'.  These regulations mainly affect residential tenancies but commercial tenancies may be caught where the tenant is an individual, they are not registered for VAT and the debts do not relate solely to the business.

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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