Relief from forfeiture

Citation

Waterson, G. and Lee, R. (2001), "Relief from forfeiture", Property Management, Vol. 19 No. 4. https://doi.org/10.1108/pm.2001.11319dab.011

Relief from forfeiture

Relief from forfeiture

Bland v. Ingrams Estates Ltd (2001) The Times, 18 January 2001

The question in this case was whether the chargee could seek relief against forfeiture in equity, even though the leaseholder(s) had chosen not to do so. Under s. 146(4) of the Law of Property Act 1925, such applications are limited to "a person claiming as under-lessee". While this term may well be wide enough to include the lessee's mortgagee, who will normally be treated as though he has a notional under-lease of the premises, the chargee in this case had registered a charge against the property in her capacity as an unpaid vendor. Thus, she fell outside the terms of s. 146(4) of the 1925 Act, and the court had to consider whether it could, and should, grant her relief against forfeiture relying on the inherent equitable jurisdiction of the court. After considering the various legal authorities the Court of Appeal came to the conclusion both that it could, and that it should, grant relief in these circumstances, subject (as is usual) to payment of the arrears of rent outstanding and of the landlord's costs.