Part 2Leasehold reform

Chapter 5Other provisions about leases

Forfeiture of leases of dwellings

I1167 Failure to pay small amount for short period

1

A landlord under a long lease of a dwelling may not exercise a right of re-entry or forfeiture for failure by a tenant to pay an amount consisting of rent, service charges or administration charges (or a combination of them) (“the unpaid amount”) unless the unpaid amount—

a

exceeds the prescribed sum, or

b

consists of or includes an amount which has been payable for more than a prescribed period.

2

The sum prescribed under subsection (1)(a) must not exceed £500.

3

If the unpaid amount includes a default charge, it is to be treated for the purposes of subsection (1)(a) as reduced by the amount of the charge; and for this purpose “default charge” means an administration charge payable in respect of the tenant’s failure to pay any part of the unpaid amount.

4

In this section “long lease of a dwelling” does not include—

a

a tenancy to which Part 2 of the Landlord and Tenant Act 1954 (c. 56) (business tenancies) applies,

b

a tenancy of an agricultural holding within the meaning of the Agricultural Holdings Act 1986 (c. 5) in relation to which that Act applies, or

c

a farm business tenancy within the meaning of the Agricultural Tenancies Act 1995 (c. 8).

5

In this section—

  • “administration charge” has the same meaning as in Part 1 of Schedule 11,

  • “dwelling” has the same meaning as in the 1985 Act,

  • “landlord” and “tenant” have the same meaning as in Chapter 1 of this Part,

  • “long lease” has the meaning given by sections 76 and 77 of this Act, except that a shared ownership lease is a long lease whatever the tenant’s total share,

  • “prescribed” means prescribed by regulations made by the appropriate national authority, and

  • “service charge” has the meaning given by section 18(1) of the 1985 Act.