Frequently asked questions – Forfeiture of Lease
How does Forfeiture work?
Once we have received an instruction form from the landlord to effect forfeiture we will make an arrangement with the landlord to attend. This has to be done on an ‘out of hours’ basis as forfeiture MUST be effected by peaceable entry only.
What will happen during the forfeiture?
Once our enforcement agent meets the locksmith on site the locksmith will being to gain entry to the premises. Once inside the locksmith will begin to change the locks. While the locksmith is carrying out the lock change, our Enforcement agent will begin to take an inventory of all the goods on site, this is accompanied with pictures of the premises and the goods found on site. We also include meter readings where possible and any damage or suspicious activity we may encounter while on the premises. A torts notice can also be issued upon request. Once all locks are changed and forfeiture notices are affixed to the doors and windows, our enforcement agent will then lock the premises, take some further photos and leave site. (If arrangements have been made to meet the landlord/agent/agreed persons to pass on the new keys a key delivery form will then be filled out and signed by the enforcement agent along with the recipient party receiving the new keys) the landlord will then receive a full report on the forfeiture with all relevant photos.
I have rent outstanding, I want to forfeit the premises, but I also want to recover my rent arrears. Can I do this?
Yes, although you must instruct us under Commercial Rent Arrears Recovery (CRAR) first. That way we can make attempts to recover your current/ aged rent arrears. Depending on the result of CRAR you may then wish to forfeit the lease upon further outstanding rent arrears, previously defaulted arrangements, service charge arrears or abandon CRAR completely and still forfeit the lease.
How long will forfeiture take?
There is no certain time we can give you as there are too many variables, such as, number of locks to change, issues with difficult locks and potential problems with the tenant arriving on site. Our usual time scale for successful forfeiture to give you an idea is around 2 hours.
How much will a locksmith cost?
Again, it is impossible to give an accurate cost for a locksmith because of variables i.e. number of locks, type of locks and time on site. The usual average locksmith charges are around £180.00.
What are your charges and what is a usual total forfeiture cost?
Enforcement agent costs for attendance are £300.00 this includes the first hour on site and then £95.00 per hour for each additional hour. The usual locksmith charges are around £180.00, this brings the usual cost of forfeiture to approximately £575.00 net. (please note that all costs are subject to VAT at the usual rate of 20%).
Lease has expired, however the tenant is still in occupation of the premises can I take enforcement action?
The lease expires usually when the tenant has defaulted on payments and the landlord/ managing agent has exercised their right of forfeiture of lease or when the lease agreement has reached its contractual end date, with no further right of continuation to occupy the premise. Section 79 of the Tribunals, Courts & Enforcement Act 2007 (TCEA2007) covers this area in detail.
If the tenant is claiming to hold over and occupy the premise under the Landlord & Tenant Act 1954, the landlord/ managing agent may continue to use the Commercial Rent Arrears Recovery (CRAR) procedure in order to enforce and collect the rent outstanding.
CRAR cannot be used once the lease has ended, there are exceptions as detailed in section 79 of the TCEA2007, which include but not limited to:
- The lease was not terminated by way of a forfeiture.
- The rent recoverable is from the individual/ company who was the tenant at the time of the expiry of the lease.
- The individual/ company are still occupying all or part of the demise.
- A period of 6 months or longer has not been reached before the enforcement action is undertaken and the end of the lease.
- The landlord recovering after the end of the lease is lawfully permitted to recover the earlier arrears.
- If there is a new lease on the premises with the individual/ company, it must be a commercial lease.
Our lease agreement allows for Grace Periods, what effect does this have?
Most lease agreements specifically detail within them when the rent should be paid. Usually the rent will become due for payment on a quarter date or if paid monthly then the first day or another specific date of each month.
If there is a 7-14 days’ grace period granted in writing after the rent due date before any enforcement action may commence, you are bound by those terms as laid out in the agreement and the grace period must be honoured. If there have been amendments made to the lease agreement and both the landlord and tenant have agreed to waive the grace period in writing, then you will be no longer bound by any grace period.
Is it possible to exercise CRAR & Forfeiture against the same period of overdue rent, or where there is Rent, Service Charge & Insurance due for the same period?
- Where there is only pure Rent outstanding and you wish to exercise your right to take control of the goods under CRAR, then NO you cannot affect forfeiture at the same time. If after the issuing of the Notice of Enforcement there has been no contact with the tenant, followed up by an enforcement agent attendance where it is found that the tenant has absconded, then yes we can abandon the CRAR process and move the matter to forfeiture if instructed.
- Where there is pure Rent, Service Charge & Insurance outstanding, then YES providing the lease agreement permits the process to take place, it can be carried out. The procedure to follow would be; take control of the goods first under CRAR for the pure rent, then forfeit the premises at a later time/date when the tenant, allowing for a peaceable re-entry into the premises and the lease becoming determined, does not occupy the premises.
Frequently asked questions – Traveller and Squatter Eviction
What does your traveller/trespasser eviction include, what are my options?
When it comes to evicting travellers/trespassers we have 2 options. The first of these options is what we call our ‘Serve and assess’ option. If you choose serve and assess we will attend site to serve notice on the travellers for immediate eviction and carry out a full risk assessment of the site, then we leave site. The risk assessment helps us determine the nature of the travellers/trespassers and gives us a good idea of the number of persons and caravans situated onsite. This can aid us in deciding what course of action is best to take in regards to removal, it also gives the travellers chance to vacate the premises after being served the notice. The second option is our ‘Same day Serve and Evict service’ if you choose the same day serve and evict service we will attend site, serve notice on the travellers and stay on site whilst attempting to negotiate immediate vacation of the land/premises, with this option and the warning of further action (such as further agents attending and tow trucks) we have a 95% success rate on the moving on of travellers and trespassers the SAME DAY! We will also stay on site at the request of the client to ensure the site is secured without the trespassers re-attending. (securing the site is the responsibility of the agent/landlord).
How much does it cost?
The cost for the Serve and Assess option is £450.00. The cost for the ‘Same day Serve and Evict’ service is £600.00 for attendance this includes the first hour on site. £175.00 is chargeable per hour or part thereof whilst on site after the initial hour.
What if the travellers do not leave on the first day of serve and evict?
We will re-attend site the following day (no fee) at a continuation of the hourly rate until the travellers are gone.
How quickly can you attend?
We can usually attend on the same day of instruction (depending on the time of instruction) if not then next day attendance. We can attend 7 days a week, if you have an issue on a Friday don’t wait until Monday to instruct our services. Instructing us earlier can save cost along with reducing the possibility for more travellers to attend your land, causing further expensive damage, through litter and fouling.
Should I contact the police?
Yes, although the police cannot assist you with removal of travellers as it is a civil matter it will create a log number for the incident, this will help our enforcement agent get police assistance if required should there be a breach of the peace.
What if you can’t remove the travellers?
In the very rare situation where we cannot remove the travellers (less than 5%) we would advise that the case is taken through the courts where you can seek an order for the possession of the land from the travellers/ trespassers.
Collect My Debt Limited can guide you through this process on the rare occasions it should ever be required.
If there are any questions you may have that are not mentioned above please call us on 0800 612 5161 or email us at info@collectmydebt.co.uk and we would be only to happy to help.