Can A Commercial Landlord Lock You Out?

Commercial property is governed by the terms of a commercial lease which is normally quite different from a residential lease. With it comes to the rights and obligations of both the landlord and tenant, in general, the law is less forgiving if a commercial tenant has breached the terms of the lease as compared to a residential tenant where making people homeless is something the courts seemingly try and avoid at all costs. In this article, can a commercial landlord lock you out, we look at the circumstances involved and the processes required before you as a tenant can find yourself in this position.

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For a free initial discussion on how we can help if you find yourself locked out or threatened to be locked out of your commercial premises, get in touch with us today. We will review your situation and discuss the process involved in a clear and approachable manner. Early expert legal assistance can help you avoid making mistakes, saving you money and also avoiding the stress of dealing with these issues on your own. Simply call us on 0345 901 0445 or complete our online enquiry form and a member of the team will get back to you.

Can a tenant be evicted before the end of the lease?

The process of evicting commercial tenants early is known as ‘forfeiture’ of the lease. This can only happen if the lease contains a forfeiture clause. As a tenant, it is important you understand the rules governing eviction as it can have a profound effect upon your business.

How does a landlord go about forfeiture?

The most common breach of a commercial lease is non-payment of rent. However, it is also common to find lease terms that allow for forfeiture for other reasons. These can include using the property for illegal purposes, any form of insolvency, abandonment by the tenant, or any other breaches of the lease.

There are two fundamental methods of the landlord exercising forfeiture; by court order or by what is known as “peaceable re-entry”. This is where the landlord can ultimately change the locks.

Court Proceedings

Once you have been served possession proceedings by the landlord, this is regarded as unequivocal election by the landlord to forfeit the lease. Upon the service of an issued claim form, notional physical re-entry occurs. The act of the landlord must be unequivocal and has the effect of forfeiting the tenancy, in the same way, a peaceable re-entry does.

The lease would then be considered to be forfeited and is brought to an end. Once the lease is forfeited the landlord is still entitled to claim back any rent that has not been paid. In other words, evicting commercial tenants from premises does not relieve the tenant from having to pay back any rent arrears. The safest way when it comes to evicting a commercial tenant is by commencing a possession claim in the County Court. This process however can often be a quite lengthy process.

Peaceable re-entry – changing the locks

The powers of a commercial landlord to deal with non-payment of rent are far-reaching.  By means of forfeiture, virtually all commercial leases will have a clause allowing the landlord to terminate the lease if the rent is unpaid for a specified number of days, normally somewhere between 14 -28 days.

Provided that any required notice has been served and the prescribed time frame for the tenant to remedy the breach of the lease has lapsed without adequate action, the landlord can then seek to re-enter your property and in fact, no notice is required in respect of rent arrears only other breaches.

For peaceable re-entry to be satisfied, the following points must be considered by the landlord:

• In order to avoid confrontation, the landlord would need to ensure the premises don’t have anyone in physical occupation at the time.
• If there is any risk of violence whatsoever, the landlord runs the risk of committing an offence under section 6 of the criminal law act 1977.
• If the landlord can demonstrate peaceable entry, he/she can change the locks.
• The changing of the locks is to be considered by the tenant that the landlord has terminated the tenancy agreement.
• A notice must be left by the landlord that is clearly visible to the tenant detailing the actions taken.

Is there anything a tenant can do about forfeiture?

You may be able to apply from relief from forfeiture. This will allow you the option to remedy any breaches of the lease, including repayment of all rent arrears and costs (including bailiffs and/or locksmiths fees, if the landlord has exercised peaceable re-entry). If this has been done, being evicted is no longer a viable option for the landlord.

Once a possession order is granted, you will usually have 28 days to either apply for relief (by, for example, paying any rent arrears and your legal fees) or, if they are unable or unwilling to meet the relief conditions imposed by the court, vacate the premises. At this point, the landlord will have full possession of the property.

How we can help

We have a proven track record of dealing with and advising upon commercial landlord and tenant disputes. We will guide you through the process and ensure all checks are carried out swiftly and efficiently and we firmly believe that with the right solicitors by your side, the entire process will seem more manageable and far less daunting.

How to Contact our Property Litigation Solicitors

It is important for you to be well informed about the issues and obstacles you are facing. However, expert legal support is crucial in terms of saving you money and ensuring you achieve a positive outcome.

To speak to our Property litigation solicitors today, simply call us on 0345 901 0445, or allow a member of the team to get back to you by filling in our online enquiry form . We are well known across the country and can assist wherever you are based. We also have offices based in Cheshire and London.

 

Authored by Ben Posted in Litigation, News Tagged as