My Tenant Has Breached the Lease – What Can I Do?

When you own a leasehold property, you do not own the land it stands on outright.

Instead, your ownership is governed by a lease, which is a legally binding contract.

This lease sets out the rights and obligations of both the leaseholder (your tenant) and the landlord (you), including strict rules about how the property must be used and maintained.

Breaches of lease terms are one of the most common causes of tension between landlords and leaseholders.

If not addressed promptly and appropriately, these issues can escalate into drawn-out, stressful, and expensive legal disputes.

What Counts as a Breach of Lease?

A lease is a binding legal agreement, and its terms are enforceable in court.

This means that any action or inaction by the leaseholder that fails to comply with these terms constitutes a breach of the lease.

Common examples of leaseholder breaches include:

• Unauthorised Alterations: If the leaseholder carries out structural alterations, extensions, or even significant internal reconfigurations without your prior written consent, this will almost certainly be a breach.
• Unauthorised Subletting: If the lease prohibits sub-letting or requires your consent, and the leaseholder sublets the property without permission, this is a clear breach.
• Nuisance: Causing nuisance or annoyance to neighbours, through excessive noise, anti-social behaviour, or even persistent strong odours, can breach lease covenants related to peaceful enjoyment for other residents.
• Failure to Repair and Maintain: Leases often impose obligations on leaseholders to keep the interior of their property in good repair, so failure to address issues such as damp or general disrepair can constitute a breach.
• Arrears of Service Charge or Ground Rent: Consistently failing to pay service charges or ground rent on time is a fundamental breach of the lease’s financial covenants.
• Breaches of User Covenants: If the lease specifies the property must be used solely as a private dwelling, and the leaseholder starts running a business from the property without permission, this is a breach of the user covenant.

What Can Landlords Do?

If you are a landlord, whether residential or commercial, you have the right to enforce the terms of the lease.

The approach you take will often depend on the nature and severity of the breach, and whether it is ongoing or a one-off event.

Before legal action

Sometimes, a breach is unintentional, with the leaseholder genuinely unaware that they are doing something wrong.

A polite, informal letter or conversation can often resolve the issue quickly. Make sure you keep clear records of all communications.

If informal attempts fail, or if the breach is more serious, a formal “letter before action” from your solicitor is often the next step.

This letter should clearly identify the specific lease covenant(s) that have been breached, provide details of the breach, and demand that the leaseholder ceases the breach and rectifies any damage caused within a specified, reasonable timeframe.

The letter should also warn of the potential consequences of continued non-compliance, including legal action, costs, and potentially forfeiture of the lease.

Consider also engaging in mediation or negotiation to find a mutually agreeable solution to the dispute. Many leases now include ADR clauses to enable effective dispute resolution.

Legal action

If informal or ADR procedures are unable to resolve the dispute, you can apply to the First-tier Tribunal (Property Chamber) (FTT) for a declaration that a breach has occurred.

Under Section 168 of the Commonhold and Leasehold Reform Act 2002 (CLRA 2002), applying to the FFT for a declaration is a necessary precursor to further enforcement action, because a determination provides legal certainty that a breach exists.

If the FTT determines that a breach has occurred, and the leaseholder still fails to remedy it, you can then apply to the FTT for an Enforcement Order.

This order formally requires the leaseholder to comply with the FTT’s decision. Failure to comply with an FTT order can lead to further penalties and strengthen your position should you need to escalate matters.

Forfeiture of the Lease

In the most extreme cases, you may consider seeking forfeiture of the lease, whereby you bring the lease to an end and effectively repossess the property.

This remedy is subject to strict legal requirements and safeguards for the leaseholder under Section 146 of the Law of Property Act 1925, so it should always be a last resort.

Be very careful not to “waive” your right to forfeit. Accepting rent after becoming aware of a breach can be construed as a waiver of the right to forfeit for that specific breach.

Even if a court orders forfeiture, the leaseholder can often apply for “relief from forfeiture,” especially if they remedy the breach and pay any outstanding costs. Courts are generally reluctant to order forfeiture and will often grant relief if the leaseholder can put things right.

Resolve Landlord-Tenant Disputes with Palmers Solicitors

Leasehold law is complex and fraught with potential pitfalls. Attempting to enforce lease terms without expert legal advice can lead to costly mistakes, invalidate your actions, or even expose you to counterclaims.

Our experienced litigation and dispute resolution team at Palmers Solicitors can help you assess your options and act proportionately to resolve breach of lease issues. We understand the nuances of property law and the importance of a strategic approach.

We will take the time to understand the unique circumstances of your situation and offer clear, practical advice to help you resolve the issue in a quick and cost-effective manner.

If you are experiencing a breach of lease issue, contact our litigation and dispute resolution team today for professional legal advice tailored to your needs.