Interim Schedules for Tenants

A notice under Section 146 of the Law of Property Act 1925 is a formal statutory notice served by a landlord as a prerequisite to forfeiting a lease for breach of covenant. For repair breaches, it tells you:

• What breaches the landlord is complaining about
• That you must remedy those breaches
• That you may have to pay compensation
• (For qualifying leases) That you have the right to serve a counter-notice

This is not an informal complaint or a negotiating position. It’s a legal document that starts a formal process potentially leading to the loss of your lease.

But — and this is important — receiving a Section 146 notice doesn’t mean you’ll lose your lease. It means you need to respond properly, understand your rights, and take action — usually quickly. If a notice has landed, speak to a surveyor today.

If your lease was originally granted for seven years or more and has at least three years left to run, you have significant protections under the 1938 Act:

The right to serve a counter-notice

Within 28 days of receiving the Section 146 notice, you can serve a counter-notice claiming the benefit of the Act. This is crucial — if you serve a valid counter-notice, your landlord cannot proceed to forfeiture without first getting leave (permission) from the court.

Court scrutiny of the landlord’s case

If you serve a counter-notice, the landlord must apply to court for leave to proceed. The court will only grant leave if one of five specific grounds is made out — including that immediate remedying is necessary to prevent substantial diminution in value, or that the cost of immediate repair would be disproportionately less than if postponed.

Time to respond

The 28-day counter-notice period gives you time to take advice and understand your position. Don’t let this deadline pass.

1. Check the deadline

You typically have 28 days from service of the notice to serve a counter-notice. Mark this date and treat it as critical.

2. Get professional advice

You need both legal advice (from a solicitor) and technical advice (from a surveyor). The notice may contain claims that aren’t valid, and your response needs to be informed by proper analysis.

3. Don’t panic — but don’t ignore it

A Section 146 notice is serious, but landlords often don’t actually want to forfeit. The notice may be a negotiating tactic to prompt action. However, ignoring it is dangerous. Engage properly.

4. Consider serving a counter-notice

In most cases, if the 1938 Act applies, you should serve a counter-notice. This preserves your rights and forces the landlord to justify their case to a court before they can proceed.

If you serve a counter-notice, your landlord must apply to court and establish one of these grounds:

1. Immediate remedy necessary to prevent substantial diminution in the value of the reversion, or the value has already been substantially diminished
2. Immediate remedy necessary to give effect to court orders or statutory requirements
3. Immediate remedy necessary where the tenant isn’t in occupation and it’s in the interests of the occupier
4. Cost of immediate repair is relatively small compared to the much greater cost if repair is postponed
5. Special circumstances make it just and equitable to grant leave

These are significant hurdles. Courts don’t grant leave automatically — the landlord must make their case.

If the 1938 Act applies and you don’t serve a counter-notice within 28 days, you lose the right to require court scrutiny of the landlord’s case. They can proceed to forfeiture without proving any of the grounds above.

Serving a counter-notice:

• Preserves your legal protections
• Forces the landlord to justify their case
• Gives you time to negotiate or prepare a defence
• Demonstrates you’re engaging seriously with the process

Unless there’s a specific reason not to (which would be unusual), serve the counter-notice.

Scenario 1: Negotiated resolution

Most Section 146 cases settle. The notice has got your attention; now both parties negotiate. You might agree to:

• Carry out specified works to an agreed programme
• Pay compensation for some breaches
• A combination of works and payment

We can advise on what’s reasonable and help negotiate terms.

Scenario 2: Landlord applies for leave

If you’ve served a counter-notice and the landlord wants to proceed, they must apply to court. We provide expert evidence challenging their case. Many landlords don’t proceed once they realise their case will be scrutinised.

Scenario 3: Court grants leave

If the court grants leave, the landlord can proceed toward forfeiture — but you still have options, including applying for relief from forfeiture. The court can grant relief if you remedy the breaches and compensate the landlord.

Scenario 4: Landlord doesn’t proceed

Sometimes the notice is a tactic that the landlord doesn’t follow through on, particularly if you respond robustly. The threat of forfeiture is powerful; actually forfeiting is often not in the landlord’s interest either.

Even if proceedings advance, tenants can apply for relief from forfeiture. Courts can grant relief if:

• The breach is remedied
• The landlord is compensated
• Forfeiture would be disproportionate

This is a safety net — but it’s better to resolve matters before reaching this stage.

The 28-day counter-notice deadline is fixed. If you miss it, you lose important protections. Contact us as soon as you receive a Section 146 notice — don’t wait until the deadline is close.

Before things escalate:

• Interim Schedules for Tenants — Responding to earlier-stage claims

To understand your overall position:

• Dilapidations Assessments — Understanding your lease-end liability

At lease end:

• Dilapidations for Tenants — When the terminal claim arrives

For your next lease:

• Schedules of Condition for Tenants — Baseline protection from the start