Forfeiture
Definition
The legal process by which a freeholder can terminate a lease and take back possession of a leasehold property. Grounds include non-payment of ground rent or service charges, breach of lease covenants, or subletting without permission. In practice, forfeiture is rare for residential leases and courts usually allow the leaseholder to remedy the breach.
Why it matters
While outright forfeiture is uncommon, the threat of it gives freeholders significant leverage. If you receive a forfeiture notice, act immediately — most breaches can be remedied. Never ignore ground rent demands, even for small amounts, as they can technically trigger forfeiture proceedings.
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