General guidance only, not legal advice. This article provides general information for commercial landlords in England and Wales. It does not apply to Scotland or Northern Ireland. Laws and procedures change, so always check the terms of your lease and seek professional advice for your circumstances.
Commercial leases sit outside the Renters' Rights Act. The 2026 residential reforms don't apply to business tenancies. Commercial possession is driven by the lease itself, the Law of Property Act 1925, the Landlord and Tenant Act 1954 and, for rent collection, the Commercial Rent Arrears Recovery rules.
Key Insights
- Two tools, two goals. Forfeiture gets the premises back. CRAR collects the rent and keeps the lease alive. You can't do both for the same arrears.
- Rent arrears can mean no court. If the lease has a forfeiture clause, you can usually forfeit for unpaid rent by peaceable re-entry, without a court order.
- Other breaches need a section 146 notice first. Disrepair, unauthorised use or alterations need formal notice and a chance to put things right.
- Waiver kills claims. Demand or accept rent after you know about a breach and you can lose the right to forfeit for it.
- Anyone living there changes everything. If part of the premises is lived in, peaceable re-entry is off the table.
How do you evict a commercial tenant?
You forfeit the lease. If the lease contains a forfeiture clause and the tenant has failed to pay rent, you can usually forfeit by peaceable re-entry: changing the locks, typically out of hours when the premises are empty, without going to court. For breaches other than rent, you must first serve a notice under section 146 of the Law of Property Act 1925. Where re-entry isn't safe or lawful, you forfeit through court proceedings instead.
If what you actually want is the money rather than the building, Commercial Rent Arrears Recovery (CRAR) may be the better tool.
Forfeiture or CRAR: which do you need?
| Your goal | Best route | Court order? | What happens to the lease |
|---|---|---|---|
| Get the premises back after unpaid rent | Forfeiture by peaceable re-entry | No, if the lease allows it | Ends, subject to the tenant's right to apply for relief |
| Get the premises back after a breach other than rent | Section 146 notice, then forfeiture | Not always, but often advisable | Ends, subject to relief |
| Recover rent and keep a trading tenant | CRAR | No | Continues |
| Premises include a flat or living space | Forfeiture by court proceedings | Yes | Ends after the court order |
| Tenant is in administration or another insolvency process | Take advice first | Often needed | Restrictions may apply |
Forfeiture by peaceable re-entry for unpaid rent
Peaceable re-entry is the fastest lawful way to recover commercial premises, and the most commonly misused.
- Check the lease. You need a forfeiture (re-entry) clause. Most commercial leases have one, stating that the landlord may re-enter if rent is unpaid for a set number of days, often 14 or 21, "whether formally demanded or not".
- Check the arrears and the timing. The clause's grace period must have passed.
- Stop anything that could amount to waiver. No rent demands, no acceptance of payments, no invoices for the next quarter.
- Re-enter peaceably. Usually out of hours, by enforcement agents, with locks changed and a notice fixed to the premises explaining that the lease has been forfeited. Using or threatening violence to gain entry where someone inside opposes it is a criminal offence.
- Deal with the tenant's goods. They remain the tenant's property and must be made available for collection.
Two hard stops. If anyone lawfully lives in any part of the premises, you cannot forfeit by peaceable re-entry. You need a court order. And if the tenant is in administration, a moratorium can prevent forfeiture without consent or court permission.
Forfeiture for other breaches: the section 146 notice
For breaches other than non-payment of rent, such as disrepair, unauthorised use, unauthorised alterations or subletting, you must serve a notice under section 146 of the Law of Property Act 1925 before forfeiting. The notice must:
- identify the breach,
- require it to be remedied, if it can be,
- require compensation, if you want it.
The tenant must then be given a reasonable time to put things right. Only after that can you forfeit. Repairing breaches under longer leases (seven years or more, with at least three years left) carry extra protection: the tenant can serve a counter-notice, after which you need the court's permission to proceed.
What is waiver, and how do landlords lose the right to forfeit?
Waiver happens when a landlord, knowing about a breach, does something that treats the lease as continuing. The classic examples are demanding or accepting rent that falls due after the breach, or using CRAR. Once a right to forfeit is waived for a one-off breach, it's gone for that breach.
Continuing breaches, such as ongoing disrepair or unauthorised use, arise afresh each day, so waiver is less final. But the safest habit is simple: the moment you're considering forfeiture, tell your accounts team and managing agent to stop all demands until you've decided.
Can a commercial tenant get the lease back?
Often, yes. A tenant, and in some cases its lender or a subtenant, can apply to court for relief from forfeiture. Where the forfeiture was for unpaid rent, courts commonly grant relief if the arrears and the landlord's costs are paid, provided the tenant applies promptly. After peaceable re-entry, that usually means within six months.
That's why forfeiture often works as leverage as much as an exit. Changing the locks gets the tenant's attention. Whether you end up with the building or the money depends on what they do next, so decide in advance which outcome you'd prefer.
CRAR: collecting commercial rent without ending the lease
Commercial Rent Arrears Recovery lets a landlord instruct a certificated enforcement agent to take control of the tenant's goods and sell them to recover unpaid rent, without a court order. It replaced the old law of distress in 2014. The key conditions:
- Written lease of purely commercial premises. CRAR can't be used if any part is let as a dwelling.
- Rent only. Basic rent, plus VAT and interest. Service charges, insurance and other sums can't be recovered through CRAR, even if the lease calls them rent.
- Minimum arrears. At least seven days' rent must be outstanding.
- Notice. The tenant must be given at least seven clear days' notice of enforcement before goods are taken.
CRAR also lets a landlord serve notice on any subtenant to pay its rent directly to the landlord until the arrears are cleared. Remember the trade-off: using CRAR affirms the lease, so it waives the right to forfeit for those arrears.
Common commercial eviction mistakes
- Accepting rent after deciding to forfeit.
- Re-entering premises with a residential flat included.
- Forfeiting for disrepair without a section 146 notice.
- Using CRAR for service charge arrears.
- Re-entering without checking for an insolvency moratorium.
- Changing the locks with no plan for the tenant's application for relief.
How Helpland can help
Commercial possession rewards landlords who pick the right tool first. Helpland's Commercial Evictions service covers both CRAR and lease forfeiture, from assessing the lease and serving the Letter of Forfeiture through to re-entry, proceedings and enforcement.
We're one of only two NRLA-recommended eviction specialists in England and Wales, with over 20 years' experience and transparent fixed fees. Request a free consultation at helpland.co.uk.
Frequently Asked Questions
Can I change the locks on a commercial tenant who hasn't paid rent?
Usually yes, if the lease has a forfeiture clause, the grace period has passed, you haven't waived the breach, and nobody lives on the premises. This is forfeiture by peaceable re-entry. The tenant can still apply to court for relief.
Do I need a court order to evict a commercial tenant?
Not for unpaid rent where the lease allows peaceable re-entry. You do need one if anyone lives in any part of the premises, and court proceedings are often the safer route for disputed or complex breaches.
How much rent must be owed before I can use CRAR?
At least seven days' rent must be outstanding, and the tenant must receive at least seven clear days' notice of enforcement. Only basic rent, VAT and interest count.
Can I use CRAR and forfeit the lease at the same time?
Not for the same arrears. Using CRAR treats the lease as continuing, which waives the right to forfeit for those arrears. Decide whether you want the rent or the premises first.
What is a section 146 notice?
A notice under section 146 of the Law of Property Act 1925 that a landlord must serve before forfeiting a lease for breaches other than unpaid rent. It sets out the breach, requires it to be remedied where possible and gives the tenant a reasonable time to comply.
This article provides general guidance for commercial landlords in England and Wales and does not constitute legal advice. Laws and court procedures may change. Always check your lease and seek professional advice for your circumstances. Last reviewed: November 2026.