Library · Act of Parliament
Housing Act 1996, section 81
A landlord cannot forfeit a lease for unpaid service or administration charges unless the amount has been agreed, admitted or decided by a tribunal or court.
What it does
Section 81 protects leaseholders of homes from forfeiture over disputed charges. Before a landlord can begin forfeiture for unpaid service charges or administration charges, the leaseholder must have agreed or admitted the amount, or a tribunal, court or arbitrator must have decided it, and 14 days must have passed since that decision.
Why it matters for a self-managed block
Forfeiture is a drastic remedy, and for a leaseholder-owned company it means acting against a fellow member. In practice, blocks collect arrears through reminders, a compliant final demand, county court money claims or a tribunal determination. Speak to a solicitor before any step towards forfeiture.
Coming changes
The draft Commonhold and Leasehold Reform Bill (2026) proposes abolishing forfeiture for residential long leases and replacing it with a new enforcement scheme. This is a proposal, not law.
Read the official text at legislation.gov.uk
Crown copyright, reused under the Open Government Licence v3.0. Summary by Freeholdpilot, checked 1 November 2026. This is legal information about the law in England and Wales, not legal advice for your building. For advice, speak to a solicitor.