A commercial tenant who has stopped paying rent, breached lease terms or remained after the agreed end date can place a serious burden on a landlord’s business. However, deciding how to evict a commercial tenant is not simply a matter of changing the locks or asking them to leave. The correct route depends on the lease, the reason for seeking possession, the tenant’s legal status and the protections that may apply.
For commercial premises in England and Wales, a landlord will commonly consider forfeiture, court possession proceedings or, where the lease is ending, the statutory process under the Landlord and Tenant Act 1954. Each route has strict requirements. Getting the process wrong can lead to a claim for unlawful forfeiture, damages, costs and delay just when prompt action matters most.
Start with the commercial lease
The lease is the starting point. Before taking action, establish whether it contains a forfeiture clause, sometimes called a right of re-entry. Without this clause, a landlord will not normally be entitled to forfeit the lease for breach during its fixed term, even where the tenant is in arrears.
The clause should be reviewed alongside the facts. It may permit forfeiture for unpaid rent after a specified period, breach of a covenant, insolvency or another defined event. Check precisely which sums are overdue, when they fell due and whether the tenant has breached any repairing, use, insurance, assignment or subletting obligations.
It is also essential to identify the parties and the premises accurately. Is the occupier the named tenant, an assignee, a guarantor, a licensee or a subtenant? Is any part of the property residential? A mixed-use building requires particular care. Peaceable re-entry must never be used to recover premises containing residential accommodation.
Keep a clear record of rent demands, correspondence, inspection notes, photographs and the relevant lease clauses. A well-organised evidence file helps assess the available remedy and protects the landlord if the tenant disputes the action.
The main ways to evict a commercial tenant
Forfeiture for rent arrears
Where a lease has a valid forfeiture clause and the right has arisen, a landlord may be able to end the lease for non-payment of rent. In suitable cases, this can be done by peaceable re-entry, usually through a certificated enforcement agent attending when the premises are empty, or by applying to the court for possession.
Peaceable re-entry can be quick, but it is not a shortcut free from risk. The agent must not use or threaten violence, force entry while someone is present who opposes entry, or create a breach of the peace. The locks may be changed only where it is lawful to do so, and appropriate notices should be displayed. The tenant may then apply to the court for relief from forfeiture, asking for the lease to be restored on terms that commonly include payment of arrears, interest and costs.
Court proceedings are generally slower, but they offer greater procedural control where the property is occupied, the facts are disputed, valuable stock is on site or a confrontation is likely. A possession claim also creates a formal route to a judgment for rent and other sums, where appropriate.
A landlord must take care not to waive the right to forfeit. For example, demanding or accepting rent that falls due after knowing of an existing breach can, depending on the circumstances, amount to treating the lease as continuing. This may prevent forfeiture for that particular breach.
Forfeiture for breaches other than rent
For most non-rent breaches, such as unauthorised alterations, disrepair or unlawful subletting, a landlord must first serve a notice under section 146 of the Law of Property Act 1925. The notice must specify the breach, require it to be remedied if it can be remedied, and require compensation in money if appropriate. It must then allow the tenant a reasonable time to comply.
What amounts to a reasonable period depends on the breach. Repair obligations may need time for access, quotations and works, while an unauthorised use may require immediate steps to stop the offending activity. A defective notice can undermine the whole forfeiture process, so it should be drafted carefully and served in accordance with the lease and legal rules.
Additional safeguards may apply where the breach concerns repairs, including statutory protections that can restrict forfeiture. Notices may also need to be served on mortgagees, subtenants or other parties with an interest in the property.
Possession after the lease ends
A fixed-term lease does not always end simply because its contractual expiry date has passed. Many business tenants have security of tenure under the Landlord and Tenant Act 1954. If the lease is protected, the tenant may have a right to remain and request a new tenancy unless the landlord can establish a statutory ground for opposition.
In that situation, the landlord usually needs to follow the section 25 notice procedure, or respond correctly to a tenant’s section 26 request. The required notice period, the stated grounds and the timing are critical. A landlord cannot rely on ordinary eviction methods merely because the contractual term has expired.
Some commercial leases are validly contracted out of the 1954 Act. Where that has happened, and the contractual term has ended, the landlord’s position may be more straightforward. Even then, the documentation and occupation arrangements should be checked before recovering possession.
Do not confuse CRAR with eviction
Commercial Rent Arrears Recovery, known as CRAR, allows a landlord to instruct a certificated enforcement agent to take control of a commercial tenant’s goods for certain unpaid rent. It applies only in defined circumstances, including a written commercial lease and qualifying rent arrears. The tenant must usually receive at least seven clear days’ notice of enforcement.
CRAR can help recover rent, but it does not terminate the lease and does not give the landlord possession of the premises. It may also be unsuitable where the tenant’s assets have limited value, the property is mixed-use or insolvency issues are involved. Choosing CRAR can affect the wider strategy, so it should be considered alongside forfeiture, debt recovery and negotiated settlement.
Check for insolvency and other restrictions
If the tenant is in administration, liquidation, subject to a company voluntary arrangement or affected by another insolvency process, a moratorium or statutory restriction may limit a landlord’s ability to forfeit, pursue rent or take enforcement action. The position can change quickly and may depend on the type of insolvency procedure and the dates involved.
There may also be a guarantor, rent deposit deed or authorised guarantee agreement that provides another route to recovery. These documents can be commercially valuable, but their notice requirements and enforcement provisions must be followed precisely. Acting against a guarantor without checking the lease history can create avoidable disputes.
A practical, proportionate approach
Eviction is not always the best first commercial decision. If a viable tenant has a short-term cash-flow problem, a documented payment plan, temporary concession or agreed surrender may preserve value and avoid an empty unit. If the tenant has persistently breached the lease, is damaging the property or cannot meet its liabilities, decisive action may better protect the asset.
Before serving a notice or instructing an enforcement agent, calculate the likely outcome. Consider arrears, service charge, insurance rent, dilapidations, legal costs, the prospect of reletting and the risk of a relief-from-forfeiture application. The strongest route legally is not always the quickest or most cost-effective in practice.
A solicitor can review the lease, identify whether forfeiture or possession is available, prepare compliant notices and manage court proceedings where needed. For landlords in Ilford, London and across England and Wales, early legal advice can prevent a procedural error from becoming a costly dispute.
Where possession is necessary, careful preparation is the best protection. A lawful process gives the landlord the clearest route to recover control of the premises while preserving the right to pursue the sums properly due under the lease.
