Download Our Free E-book
Get Access to the Best Content on High Court Enforcement
Get Access to the Best Content on High Court Enforcement
Shergroup’s CEO, Claire Sandbrook is often asked a question by the landlord community about their commercial tenancies. Some of the questions for example are – what are my options for a breach in the tenancy contract, how quickly can you help me to evict my tenants, and what actions can I take against my tenant in the case of non-payment of rent, how much do you charge for eviction?
After hearing the side of our client Claire, the first question is always ” have you checked your lease terms”? In most cases, the answer she gets is No.
It is common for the parties to have just a limited understanding of the agreement they have entered into and their post-completion obligations to one another. For that reason, we have summarised a few points that help us understand the situation better |
Establishing a breach becomes relatively easy now. Either of the parties has failed to do something they should have done (breach of a positive covenant) or they have done something they shouldn’t have done (breach of a negative covenant).
Assuming there is a breach, the question is ‘is the breach capable of being remedied?’ So examples:
We first advices our clients to find a mutual and practical approach to find a solution to their problem. If the landlord and the tenant can mutually agree to resolve the matter then nothing like it, if not then a formal action can be considered.
As a landlord in England and Wales, you can serve the notice in the following way –
Use this section 146 notice to notify a tenant that they are in breach of their lease. If the fault is not remedied, this breach of covenant notice will allow you to take the initial step toward forfeiting the lease. It includes information on the breach, formal disclosure procedures, and a request for compensation.
Use this section 146 notice to |
This notice covers:
A breach of covenant notice, sometimes known as a ‘section 146 notice’ (after the relevant section of the Law of Property Act 1925), can be delivered to tenants who have broken a lease agreement. It is the first legal step toward the lease being forfeited. This sort of notification is usually only utilised in the case of commercial leases.
If a landlord learns of a tenant breaching a fixed-term lease’s terms and the leaseholder is not in arrears on their rent, delivering a section 146 notice may be the best option to take legal action and forfeit the lease. A breach of covenant notice describes the violation, instructs the renter on how to correct the violation, and may also specify any potential compensation.
Covenants are essentially regulations written in a lease that define a tenant’s (or leaseholder’s) obligations under the lease’s terms. There can be restrictive covenants (for example, not allowing dogs inside the property or preventing the installation of hardwood flooring) or positive covenants (for example, allowing the installation of hardwood flooring) (e.g. cleaning the windows once every six months or replacing blown light bulbs).
Although non-payment of rent is the most prevalent sort of covenant breach (for which no breach of covenant notice is necessary), covenant breaches are frequently involved in section 146 notices:
The tenant should be given a reasonable amount of time to correct the breach after receiving a section 146 notice. What is “reasonable” will differ based on the circumstances. As a result, a tenant will require more time to repair serious damage than removing their vehicle from another tenant’s parking area.
Tenants will be obliged to correct any breaches of their covenants at first. They may be served with a section 146 notice and the lease may be forfeited if they do not take the appropriate action.
The use of a section 146 notice for non-payment of rent is not permitted. However, this isn’t truly an exception; in the case of rent arrears, this notice isn’t required to proceed with the lease forfeiture process.
Once the notice has been served, landlords should ensure that the leaseholder has received and understood how the covenant has been breached, and then provide a reasonable amount of time for the breach to be remedied. Compensation may also be requested as part of the section 146 notice. If a tenant fails to put right the breach, steps can be taken towards forfeiture of the lease, repossession as well as any claiming compensation.
You can choose to send a breach of covenant notice to your tenant if your tenant has breached a lease term and you want to bring the tenancy agreement to an end. You can use legal help from experts like Shergroup to draft and serve the Section 146 notice to your tenant and get them to act on it.
If the tenant agrees to rectify the breaches of their covenants at first, then it’s fine. If not, they may be served with a section 146 notice and the lease may be forfeited if they do not take the appropriate action. Shergroup can help in forfeiting the lease, repossession as well as any claiming compensation from the tenant.
So, if you find yourself in a similar situation reach out to the experts at Shegroup. We’re here to help you receive what is rightfully yours.
Contact us via any of the following channels |
Phone | 020 35884240
Website | www.shergroup.com and you can chat to us from here
Email | [email protected]
Facebook | Check out Shergroup on this channel and message us | facebook.com/Shergroup
Twitter | Check out ShergroupChat on this channel and message us twitter.com/Shergroupchat
LINKEDIN | Check out Shergroup message us – and please FOLLOW us | linkedin.com/company/35698655/
Instagram | Check out ShergroupChatter and message us | instagram.com/shergroupchatter/
DISCLAIMER NOTICE |
The following disclaimer applies to Shergroup Limited and its platform, shergroup.com. Please read this notice carefully before accessing or using any information provided on our platform.
By accessing or using shergroup.com, you acknowledge that you have read, understood, and agreed to this disclaimer notice. If you do not agree with any part of this notice, you should refrain from accessing or using shergroup.com.
Last updated | 19 July 2023
Should you have any questions or concerns regarding this disclaimer notice, please contact us at [email protected]