Commercial leases: the pitfalls of forfeiture
Forfeiture is a common and cost-effective method of terminating commercial leases, but is not always the best course of action. Criminal liability, claims for relief from forfeiture and financial loss are possibilities if a lease is forfeited incorrectly or is poorly timed. Here, Shoosmiths shines a cautionary light on the major pitfalls of forfeiture.
Forfeiting or terminating a lease in a weak market may leave the landlord with a vacant property which it is unable to sell or re-let. The result is lost rental income and also acquiring the liability as an occupier for all the financial liabilities for the property, including rates, utilities and maintenance. A property is more likely to fall into disrepair and suffer vandalism if left vacant. Not only can this dramatically reduce the value of a landlord’s investment, if a landlord has additional properties in close proximity, it is likely these will also be devalued by association. In re-taking possession of a property, the landlord also re-takes liability for its physical order. A landlord may be liable for injury and/or damage to third parties, including vandals/trespassers and their property if sufficient safety precautions and preventative measures have not been taken…
If you are registered and logged in to the site, click on the link below to read the rest of the Shoosmiths briefing. If not, please register or sign in with your details below.
Sign in or Register to continue reading this article
It's quick, easy and free!
It takes just 5 minutes to register. Answer a few simple questions and once completed you’ll have instant access.Register now
Why register to The Lawyer
In-depth, expert analysis into the stories behind the headlines from our leading team of journalists.
Identify the major players and business opportunities within a particular region through our series of free, special reports.
Receive your pick of The Lawyer's daily and weekly email newsletters, tailored by practice area, region and job function.
More relevant to you
To continue providing the best analysis, insight and news across the legal market we are collecting some information about who you are, what you do and where you work to improve The Lawyer and make it more relevant to you.
News from Shoosmiths
News from The Lawyer
Briefings from Shoosmiths
Case highlights the importance of intercreditor agreements.
The European Commission has announced that it had used its fast-track settlement procedures to investigate and impose fines in respect of a parking heater cartel.
Analysis from The Lawyer
Compliance and corporate governance codes for large financial institutions will undoubtedly include provisions to regulate high pay in the future
There’s more to the ABS model than attracting the man in the street and procuring external investment. Partners at the big corporate firms, take note…