A commercial landlord cannot simply decide to end a lease early because it suits them. A lease is a binding interest in land, and the landlord's ability to bring it to an end is limited by the lease itself and by statute, including the strong renewal protection many business tenants enjoy. Here are the main ways a commercial lease can end, and the limits on each.
Forfeiture for breach
If the tenant breaches the lease, the landlord may be able to forfeit (terminate early), but only if the lease contains a forfeiture clause:
- For rent arrears, the landlord can usually forfeit once rent is overdue (often after a stated number of days), subject to the tenant's right to apply for relief from forfeiture. Relief typically requires payment of all arrears, interest and costs. Where the tenant is in formal insolvency, forfeiture may require the consent of the court or the insolvency officeholder.
- For other breaches, the landlord must first serve a notice under section 146 of the Law of Property Act 1925, specifying the breach and (where capable of remedy) requiring it to be put right, before forfeiting. Again, the tenant can seek relief. Where the breach is a failure to repair and the lease has more than three years unexpired, the Leasehold Property (Repairs) Act 1938 imposes additional restrictions: the landlord must serve a specific notice and, if the tenant serves a counter-notice, obtain the court's leave before proceeding with forfeiture.
Landlords must avoid waiving the breach (for example, by demanding rent) before forfeiting.
Break clauses
Many leases contain a break clause allowing one or both parties to end the lease early on a specified date by giving notice. A landlord can only use this if the lease gives them a break right, and break clauses are strictly construed, conditions (such as vacant possession or payment up to date) must be met exactly, or the break fails.
Surrender
The landlord and tenant can agree to surrender the lease, a mutual agreement to bring it to an end early. This requires the tenant's agreement; the landlord cannot impose it.
Expiry, but watch the 1954 Act
A lease ends naturally at the end of its term. However, many business tenancies have security of tenure under the Landlord and Tenant Act 1954, Part II. Where the Act applies (and the lease was not validly "contracted out"), the tenancy does not simply end on the expiry date, it continues, and the landlord can only refuse a new lease by serving the correct statutory notice and establishing one of the statutory grounds (such as serious breaches, or the landlord's genuine intention to redevelop or occupy), sometimes with compensation payable to the tenant.
Recovering rent is not the same as ending the lease
If the issue is unpaid rent, the landlord may use Commercial Rent Arrears Recovery (CRAR) to seize goods to the value of the arrears. CRAR is only available under a written commercial lease and applies only to qualifying rent (not service charge, insurance premiums or other sums that may also be due under the lease). It is a recovery tool, not a way to terminate the lease, and using it can affect the right to forfeit.
Key takeaways
- A landlord can forfeit only if the lease allows it, and (for non-rent breaches) after a section 146 notice, the tenant may get relief.
- A landlord can end a lease early under a break clause only if the lease gives them one, and conditions are strictly enforced.
- Surrender needs the tenant's agreement.
- Under the Landlord and Tenant Act 1954, many business tenants have security of tenure, so the landlord can resist renewal only on statutory grounds.
Sources
- Law of Property Act 1925, section 146 (forfeiture for non-rent breaches); relief from forfeiture
- Leasehold Property (Repairs) Act 1938 (restrictions on forfeiture for repairing breaches)
- Landlord and Tenant Act 1954, Part II (security of tenure and grounds of opposition)
- Tribunals, Courts and Enforcement Act 2007 (Commercial Rent Arrears Recovery)
--- This article is general information about the law of England & Wales as at 2026, not legal advice. For advice on your circumstances, consult a qualified solicitor.