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Variation on a lease

By: Series: Estates Gazette ; 228 13 July 2002, 123 (1)Publication details: 2002Subject(s): Summary: Examines in the first of two articles the case for variation of forfeiture clauses in commercial leases. Looks at the types of lease which should be varied. Discusses when a landlord can forfeit the lease and the consequences of forfeiture; forfeiture proceedings by the landlord; the likelihood of forfeiture taking place without the mortgagee's knowledge. Key points are: a lender risks losing its security if it is unaware of forfeiture proceedings; tenant's mortgagee should be consider a variation of the forfeiture clause to protect its position.

Examines in the first of two articles the case for variation of forfeiture clauses in commercial leases. Looks at the types of lease which should be varied. Discusses when a landlord can forfeit the lease and the consequences of forfeiture; forfeiture proceedings by the landlord; the likelihood of forfeiture taking place without the mortgagee's knowledge. Key points are: a lender risks losing its security if it is unaware of forfeiture proceedings; tenant's mortgagee should be consider a variation of the forfeiture clause to protect its position.