Breach of Lease and Breach of Covenant Solicitors
When a tenant fails to meet their obligations under a commercial lease, it can put your investment, your property, and your business relationships at risk.
Whether it’s unpaid rent, unauthorised alterations, or a change of use that breaches the terms of the lease, prompt and well-judged legal advice can make the difference between a quick resolution and a costly dispute.
Our commercial property disputes lawyers act for commercial landlords and tenants across the UK, helping you understand your options and take decisive action when a tenant is in breach.
Get in touch for advice on a lease breach
Our Commercial Property Litigation team works with clients all over the UK, from our offices across Bristol and the surrounding area in Bedminster, Bishopston, Bristol city centre, Kingswood and Thornbury. Call us on 0117 325 2929 or fill out this form.
What counts as a breach of covenant?
A lease is a contract, and the covenants within it set out what the tenant (and landlord) can and cannot do. A breach of covenant occurs whenever one party fails to comply with one or more of these terms.
Common examples of breach of a commercial lease include:
- Non-payment of service charges or rent
- Unauthorised alterations or works carried out without the landlord’s consent
- Breach of user covenants, such as operating a different type of business than permitted in the lease
- Subletting or assignment without the landlord’s consent
- Failure to keep the property in repair
- Breach of insurance obligations
- Nuisance or damage to the property affecting neighbouring occupiers
- External changes to the premises, e.g. signage
Some breaches are one-off and easily remedied. Others are ongoing or repeated, and may justify more serious action, including forfeiture of the lease.
What happens if someone breaches a lease?
The right response to a breach of the lease agreement depends on its nature, the wording of the lease, and what you want to achieve. Our commercial litigation lawyers will talk you through the realistic options, but these might include:
- Forfeiture of the lease
- A claim for damages to compensate for losses caused by the breach
- An injunction (for breaches causing ongoing harm)
- A request for the tenant to carry out the repair works required under the lease
- Commercial Rent Arrears Recovery (CRAR), where landlords can instruct enforcement agents to recover goods to the value of the debt
- Alternative Dispute Resolution: many breaches can be resolved through negotiation or a warning, without the cost and disruption of court proceedings
Why it’s important to act quickly in breach of a commercial lease
Any delay in acting on a breach of covenant can weaken your position. Continuing to accept rent after becoming aware of a breach, for example, can mean you have to waive your right to forfeit the lease.
Time limits also apply to certain remedies, and evidence of a breach is easier to gather while it’s current. If you suspect a commercial tenant or landlord is in breach, it’s important to seek early legal advice from a solicitor who specialises in property litigation.
How our commercial property disputes solicitors can help
Our commercial property litigation lawyers offer pragmatic legal advice to help you protect your business interests while avoiding reputational damage.
In addition to breach of lease advice, our team can advise on:
- Adverse possession
- Assignments, underlettings and sublettings
- Break notices
- Commercial land disputes
- Commercial property possession claims
- Dilapidation claims
- Forfeiture of a lease
- Lease termination and renewals
- Rent recovery arrears
- Repair claims
- Service charge disputes
We also work closely with our Corporate and Commercial, Commercial Property and Dispute Resolution teams to provide comprehensive legal advice tailored to your business needs.
Breach of lease and covenant FAQs
Common breaches by a freeholder (landlord) or management company include ignoring building repairs, poor maintenance, or even failing to insure the premises. If a freeholder breaches a lease, the leaseholder should seek legal advice.
A specialist breach of lease solicitor can advise on the best course of action, but options include:
- Applying to a tribunal, where the court formally orders the freeholder to take remedial action
- Applying to the court for an injunction
- Claiming for damages
- Using a Right to Manage (RTM) to take over the building’s management
- Applying to a tribunal to appoint a new property manager
If a leaseholder breaches a covenant, the freeholder (landlord or management company) has a range of legal remedies and consequences they can enforce. These include:
- Formal warning letters
- Court injunctions
- Claim for damages
- Forfeiture of the lease
It’s important to seek legal advice before attempting to enforce any of these options, as what’s appropriate depends on the circumstances and your best interests.
A waiver of a breach of lease is when a landlord is made aware that a tenant has broken a covenant but continues as normal. This implies consent and prevents the landlord from pursuing any legal remedies for that breach of covenant.
Yes, there is a time limit for breach of covenant claims, but it depends on the type of claim and how the lease was signed.
The time limit for these types of claims ranges from six to 12 years, depending on whether the lease was signed as a Deed or a standard contract, and the clock starts on the date the breach occurred. Your solicitor will advise you on time limits during your initial meeting.
Contact our breach of lease solicitors
Need help resolving a breach of lease or covenant? Contact our Commercial Property Litigation team on 0117 325 2929 or fill out our online enquiry form, and we will be in touch.