Cheerupmate2 Limited (“the Landlord”) granted a 900 year underlease of a residential property to Mr Calci. The rent payable was just £2 per annum. As is usual, the underlease entitled the Landlord to forfeit the lease for non-payment of rent and it took this step after arrears reached £11.

The Commonhold & Leasehold Reform Act 2002 restricts a Landlord’s right to forfeit a long lease of a dwelling unless the arrears either: –

1. Exceed £350; or

2. Have been outstanding for more than 3 years.

Under Section 166 of the Act, a tenant of such a lease is not liable to make payment of rent unless the Landlord has first served a notice containing the required information. In this case the Landlord had used an old precedent which failed to explain clearly the effect of the Act and so was held to be invalid. The Landlord’s actions were held to be a trespass and Mr Calci was awarded his costs.

This case is a timely reminder that forfeiture of long leases, particularly where only a small amount is outstanding, is seen as a remedy as last resort and that all statutory requirements must be complied with.

If you have any queries or require any information relating to leasehold matters, please contact Debbie Whiteley on or at dfw@nexussolicitors.co.uk.