Part III Landlord and Tenant
Chapter I TENANTS’ RIGHTS
Forfeiture
C181 Restriction on termination of tenancy for failure to pay service charge.
1
A landlord may not, in relation to premises let as a dwelling, exercise a right of re-entry or forfeiture for failure to pay a service charge unless the amount of the service charge—
a
is agreed or admitted by the tenant, or
b
has been the subject of determination by a court or by an arbitral tribunal in proceedings pursuant to an arbitration agreement (within the meaning of Part I of the M1Arbitration Act 1996).
2
Where the amount is the subject of determination, the landlord may not exercise any such right of re-entry or forfeiture until after the end of the period of 14 days beginning with the day after that on which the decision of the court or arbitral tribunal is given.
3
For the purposes of this section the amount of a service charge shall be taken to be determined when the decision of the court or arbitral tribunal is given, notwithstanding the possibility of an appeal or other legal challenge to the decision.
4
The reference in subsection (1) to premises let as a dwelling does not include premises let on—
a
a tenancy to which Part II of the M2Landlord and Tenant Act 1954 applies (business tenancies),
b
a tenancy of an agricultural holding within the meaning of the M3Agricultural Holdings Act 1986 in relation to which that Act applies, or
c
a farm business tenancy within the meaning of the M4Agricultural Tenancies Act 1995.
5
In this section “service charge” means a service charge within the meaning of section 18(1) of the M5Landlord and Tenant Act 1985, other than one excluded from that section by section 27 of that Act (rent of dwelling registered and not entered as variable).
6
Nothing in this section affects the exercise of a right of re-entry or forfeiture on other grounds.