If your tenant has sublet the property without permission, you may be able to bring the lease to an early end by forfeiture, but only if the lease gives you that right and you follow the correct statutory procedure. Cutting corners can leave the forfeiture invalid and expose you to claims. Here is how it works in England and Wales.
First, check the lease allows forfeiture
Forfeiture (the landlord's right to terminate for breach) only exists if the lease contains a forfeiture clause, also called a right of re-entry. If there is no such clause, you cannot forfeit, whatever the tenant has done, you would be limited to other remedies such as an injunction or damages.
You must serve a section 146 notice
For a breach other than non-payment of rent, you must first serve a notice under section 146 of the Law of Property Act 1925. The notice must:
- specify the breach (here, subletting in breach of the covenant);
- require it to be remedied, if it is capable of remedy; and
- require compensation, if you want it.
The tenant must then have a reasonable time to respond before you take further steps.
For many long residential leases there is a crucial extra step. Under section 168 of the Commonhold and Leasehold Reform Act 2002, a landlord generally cannot serve a section 146 notice for a breach of covenant unless the tenant has admitted the breach, or it has been finally determined by a court or the First-tier Tribunal (subject to limited exceptions). You may therefore need that admission or determination first.
Subletting in breach is usually "not capable of remedy"
This is a key point. The courts have generally treated a breach of a covenant against subletting or assignment as a once-and-for-all breach that cannot be remedied, the unauthorised subletting has already happened (Scala House & District Property Co Ltd v Forbes [1974]). Even so, you must still serve a section 146 notice; you simply do not have to allow time to "remedy" something the law treats as unremediable.
The tenant can seek relief from forfeiture
Forfeiture is not the end of the story for the tenant (or the subtenant). They can apply to the court for relief from forfeiture, asking to keep the lease alive, usually on conditions such as ending the unlawful subletting and paying your costs. Courts have a wide discretion and often grant relief where the position can be put right.
Residential property: extra protection
If the property is someone's home, you generally cannot forfeit without a court order, physically re-entering an occupied dwelling can be a criminal offence. Long residential leases carry further protections, so always take advice before attempting to forfeit a residential lease.
What about keeping the deposit?
It is often assumed a landlord who forfeits can simply keep the deposit. Whether you can retain a deposit depends on the terms of the lease/tenancy and, for many residential tenancies, on deposit-protection rules. Treat the deposit as a separate question from forfeiture.
Avoid waiving your right
Be careful not to waive the right to forfeit, for example, by demanding or accepting rent after you know of the breach. A waiver can defeat the forfeiture, so take advice before doing anything that recognises the lease as continuing.
Key takeaways
- You can forfeit only if the lease contains a forfeiture clause.
- You must serve a section 146 notice (Law of Property Act 1925) before forfeiting for subletting.
- Breach of an anti-subletting covenant is usually treated as not capable of remedy, but a notice is still required.
- The tenant can seek relief from forfeiture; residential homes usually need a court order; the deposit is a separate question.
Sources
- Law of Property Act 1925, section 146 (restrictions on and relief against forfeiture)
- Scala House & District Property Co Ltd v Forbes [1974] QB 575
- The law on waiver of forfeiture and relief from forfeiture
--- 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.