137Restriction on forfeiture

137 Restriction on forfeiture (1) A lessor must not exercise a right of re-entry and forfeiture under a lease unless: (a) the lessor is authorised to do so by an order of the Court made under subsection (3); or (b) the lessee has abandoned or voluntarily given up possession of leased premises. (2) If a lessee breaches a covenant, obligation, condition or agreement (whether express or implied) in the lease that gives rise to a right of re-entry or forfeiture on the part of the lessor and the lessor wishes to enforce the right, the lessor must serve on the lessee a notice that: (a) specifies the particular breach complained of; (b) if the breach is capable of remedy – requires the lessee to remedy the breach; and (c) if the lessor claims compensation in money for the breach – requires the lessee to pay the compensation. (3) If notice has been served on a lessee under subsection (2) and the lessee fails within a reasonable time after service of the notice to comply with the notice, the lessor may apply to the Court for an order for possession of the leased premises. (4) If an application is made to the Court and the Court is satisfied that the lease has been terminated, the Court may make an order for possession of the premises. (5) A notice served under this section is to be in the prescribed form. (6) For the purposes of this section, a lease limited to continue for only as long as the lessee does not commit a breach of a covenant, obligation, condition or agreement in the lease takes effect as if it is a lease that: (a) is for any term for which it may lawfully be in force; and (b) contains a term giving the lessor a right of re-entry or forfeiture for breach of a covenant, obligation, condition or agreement in the lease. Law of Property Act 2000 92 (7) This section: (a) applies to leases made before or after the commencement of this Act; (b) applies despite there being a term giving the lessor a right of re-entry or forfeiture implied in the lease by operation of another Act; and (c) has effect despite any term of a lease to the contrary. (8) In this section: (a) a reference to a lease does not include a reference to a lease or tenancy for a term not exceeding 1 year; and (b) if a breach of a lease has occurred before the commencement of this Act – a reference to a covenant, condition, or agreement does not include a reference to a covenant, condition or agreement in the lease against the assigning, underletting, parting with the possession or disposing of the premises leased.