Types of Leasehold Valuation Tribunal application (Wales)
Forfeiture
These rights are set out in Sections 168 to 170 of the Commonhold and Leasehold Reform Act 2002.
Forfeiture or re-entry is the final sanction for a landlord whose tenant is in breach of the lease, including for non-payment of service charges. The procedure, except in the case of unpaid rent, is generally started by the service of a notice under Section 146 of the Law of Property Act 1925.
However, the law requires a determination by the Leasehold Valuation Tribunal (LVT) in circumstances relating to a breach of the lease or to arrears of service charges before action can be taken.
Breach of a covenant or condition in the lease
Since the coming into effect of S168 of the Commonhold and Leasehold Reform Act 2002, the landlord may not serve a Section 146 notice unless the tenant has agreed or admitted the breach or there has been a determination of the breach. Application can be made to the LVT for determination that the breach has occurred. Alternatively, if the tenant has agreed, the matter can be determined by arbitration. Any arbitration must be freely agreed to by the tenant, after the dispute has been established. A term in the lease imposing arbitration is invalid for these purposes.
The landlord may not serve the Section 146 notice until 14 days after the final determination of the LVT, to enable the tenant to remedy the breach.
Arrears of service charges
If a landlord wishes to take forfeiture action because of the leaseholder’s failure to pay service charges then, again, the landlord may not serve the Section 146 notice unless the tenant has admitted or agreed the breach or the matter has been finally determined by (or on appeal from) the LVT. ‘Finally determined’ means determined by the LVT and not appealed against within 14 days, or where the LVT’s decision is appealed and is not set aside as a consequence of that appeal (Section 81 Housing Act 1996 as amended by Section 170).
Again, the landlord may not exercise their right of re-entry or forfeiture until 14 days after final determination.
For further information on forfeiture see our information on service charges.
- Last updated:
- 8 December 2020
- Next review:
- 18 December 2026