If your commercial tenant has stopped paying rent, you may be able to change the locks by exercising your right to peaceful re-entry. However, this is only permitted if no one is occupying the property (Pirabakaran v Patel 2006 EWCA).

If the tenant, or anyone else, is living in any part of the premises (for example, in a flat above the commercial unit), you cannot simply change the locks, regardless of whether they have a legal right to be there. In such cases, a specific legal process must be followed.

In these circumstances, you may need to apply to the court to forfeit the lease to remove the tenant. Below is a step-by-step guide to that process:

1. Check Your lease

Review your lease to determine whether it includes an express right of forfeiture. Without this clause, you will not be able to apply to the court to forfeit the lease.

2. Avoid Rent Demands

When exercising your right to forfeit for non-payment of rent, you are asserting that the lease has ended. Demanding or accepting any rent, including partial payments, can be interpreted as acknowledging that the lease remains in force, which may waive your right to forfeit. To preserve your position, avoid making rent demands and refuse any partial payments.

3. Confirm The Arrears

Ensure you have an accurate and up-to-date record of the rent arrears, including the date of the last payment. Consider whether any rent increases have occurred under a rent review clause, whether insurance rent is outstanding, and whether interest is accruing on the unpaid amounts.

4. Initiate Legal Proceedings

Prepare and file the claim at court in accordance with Civil Procedure Rule 55. 

5. The Hearing

If the tenant does not defend the claim, and the court finds in your favour, it will issue an order requiring the tenant to vacate the premises and pay the arrears (usually within 28 days of the hearing).

6. Enforcement

Securing a court order is only part of the process. Enforcement can be challenging. If the tenant fails to vacate the premises by the date ordered, you will need to appoint court bailiffs to carry out the eviction. Even if the court orders repayment of the arrears, recovery may be difficult if the tenant lacks funds or assets

Recovering possession from a non-paying commercial tenant involves several legal steps. To avoid costly mistakes and preserve your rights, it is always advisable to seek legal advice early in the process. Our Litigation Team are on hand to help you with any claim for forfeiture. Please contact the team here