---
title: "Section 146 Notice: What Must Happen Before Forfeiture"
url: https://manage.management/blog/section-146-notice-what-must-happen-before-forfeiture
description: "Section 146 notice explained: the tribunal ruling and 14-day wait required first, the £350 arrears limit, repair counter-notices and the end of forfeiture."
author: "Franklin Baeza"
published: 2026-11-15T06:33:38.000Z
updated: 2026-11-15T06:33:53Z
categories: ["Governance & Compliance","UK Legislation"]
publisher: Manage.Management
language: en-GB
---

# Section 146 Notice: What Must Happen Before Forfeiture

Section 146 notice explained: the tribunal ruling and 14-day wait required first, the £350 arrears limit, repair counter-notices and the end of forfeiture.

A landlord of a long residential lease in England cannot serve a Section 146 notice for most breaches until the First-tier Tribunal or a court has decided the breach happened, or the leaseholder has admitted it, and even then must wait 14 days, under [section 168 of the Commonhold and Leasehold Reform Act 2002](https://www.legislation.gov.uk/ukpga/2002/15/section/168). For unpaid service charges, the amount must first be agreed, admitted or decided to be payable under [section 81 of the Housing Act 1996](https://www.legislation.gov.uk/ukpga/1996/52/section/81). And no forfeiture is possible for arrears of £350 or less unless part of the debt is more than three years old.

A Section 146 notice is the formal warning a landlord must serve under [section 146 of the Law of Property Act 1925](https://www.legislation.gov.uk/ukpga/Geo5/15-16/20/section/146) before it can forfeit a lease for most breaches. This guide walks through each step that has to happen first, what the notice must say, and what a leaseholder or resident director should do on receiving one. It is written by Manage.Management, the UK block management platform for RTM and RMC directors, leaseholders and managing agents. For the wider picture of how forfeiture works and the risks it carries, read our guide to [forfeiture of a lease](https://manage.management/blog/forfeiture-of-lease-what-leaseholders-must-know-about-risk).

> This article is general information about leasehold buildings in England, not legal advice. If you have received a Section 146 notice or a forfeiture claim, speak to a solicitor quickly, because the deadlines are short.

## Key takeaways

- A Section 146 notice must specify the breach, require it to be remedied if it can be, and require compensation (s.146(1) Law of Property Act 1925).
- For a long lease of a dwelling, the breach must be decided by the tribunal or a court, or admitted, before the notice is served, and the landlord must then wait 14 days (s.168 CLRA 2002).
- Forfeiture for unpaid rent, service charges or administration charges is barred when the total is £350 or less, unless part has been owed for more than three years (s.167 CLRA 2002 and SI 2004/3086).
- Where a repair notice relates to a lease of seven years or more with at least three years left, the leaseholder can serve a counter-notice within 28 days (Leasehold Property (Repairs) Act 1938).
- On 12 November 2026 the government confirmed that its Commonhold and Leasehold Reform Bill will abolish leasehold forfeiture, but until that law is passed and in force, the current rules apply.

## What is a Section 146 notice?

A Section 146 notice is a statutory notice a landlord must serve before it can enforce a right of re-entry or forfeiture for a breach of the lease other than non-payment of rent. Without a valid notice, followed by a reasonable time to put things right, the forfeiture clause cannot be enforced.

Under [section 146(1)](https://www.legislation.gov.uk/ukpga/Geo5/15-16/20/section/146), the notice must:

1. **Specify the particular breach.** A vague complaint is not enough. The leaseholder must be able to tell exactly what is said to be wrong.
2. **Require the breach to be remedied, if it can be.** Unpaid sums, missing consents or disrepair can usually be put right.
3. **Require compensation.** The notice must ask for money compensation for the breach, although landlords often say they do not want compensation.

The section has effect "notwithstanding any stipulation to the contrary", so a lease cannot contract out of it (s.146(12)). Common breaches include unpaid service charges, unauthorised alterations, subletting without consent, nuisance and disrepair inside the flat.

## What must happen before a landlord can serve the notice?

For a long lease of a dwelling, the landlord must first prove the breach. Section 168 of the 2002 Act bars a Section 146 notice unless one of three things has happened:

| Route to proving the breach | Who decides | When the notice can be served |
| --- | --- | --- |
| Landlord applies to the First-tier Tribunal (Property Chamber) under s.168(4) | Tribunal | After 14 days from the day after the final determination |
| A court or post-dispute arbitration decides the breach occurred | Court or arbitral tribunal | After 14 days from the day after the final determination |
| The leaseholder admits the breach | Leaseholder | Immediately after the admission |

"Final" matters. Under the related rules in section 81 of the Housing Act 1996, a decision becomes final only when the time for appeal has passed, or any appeal has been decided or abandoned. Our guide to the [First-tier Tribunal for leaseholders](https://manage.management/blog/first-tier-tribunal-for-leaseholders-when-and-how-to-use-it) explains how these hearings work.

Be careful with admissions. An email saying "yes, I owe that" or "I did fit the new floor" can count as an admission and remove the need for a tribunal hearing. If you dispute the breach, say so in writing.

## Can a landlord forfeit for unpaid service charges?

Yes, but only after the amount has been agreed, admitted or decided to be payable, and only above a minimum level. Section 81 of the Housing Act 1996 stops a landlord using forfeiture, including serving a Section 146 notice, for unpaid service or administration charges until the tribunal, a court or an arbitrator has finally decided the amount is payable, or the leaseholder has admitted it. The landlord must then wait 14 days.

Section 167 of the 2002 Act adds a minimum. In England, the [Rights of Re-entry and Forfeiture (Prescribed Sum and Period) (England) Regulations 2004](https://www.legislation.gov.uk/uksi/2004/3086/regulation/2/made) set the prescribed sum at £350 and the prescribed period at three years. Forfeiture is barred unless:

- the unpaid rent, service charges and administration charges together exceed £350, or
- part of the unpaid amount has been payable for more than three years.

Late-payment fees do not count towards the £350 (s.167(3)). If you are behind on payments, our guide to [service charge arrears](https://manage.management/blog/service-charge-arrears-what-happens-and-how-to-prevent-them) covers the earlier stages, and our guide to [challenging an unreasonable bill](https://manage.management/blog/service-charge-disputes-how-to-challenge-an-unreasonable-bill) explains how to dispute the charge itself. Wales has its own regulations for the prescribed sum and period.

## Does ground rent need a Section 146 notice?

No. Section 146 does not apply to forfeiture for non-payment of rent (s.146(11)), so ground rent arrears follow a different route. Even so, a leaseholder only has to pay ground rent once the landlord has served a demand under [section 166 of the 2002 Act](https://www.legislation.gov.uk/ukpga/2002/15/section/166). The due date must be between 30 and 60 days after the notice is given. The £350 and three-year limits in section 167 still apply.

In the county court, a leaseholder sued for forfeiture over rent arrears can usually end the claim by paying all the arrears and costs at least five clear days before the hearing date, under [section 138 of the County Courts Act 1984](https://www.legislation.gov.uk/ukpga/1984/28/section/138). Even after possession, the leaseholder may apply for relief within six months.

## What extra rules apply to repair breaches?

For disrepair, the [Leasehold Property (Repairs) Act 1938](https://www.legislation.gov.uk/ukpga/Geo6/1-2/34/section/1) gives an extra layer of protection. It applies to leases granted for seven years or more where at least three years remain. The Section 146 notice must state, as prominently as the rest of the notice, that the leaseholder can serve a counter-notice claiming the benefit of the Act, and how and when to do so.

If the leaseholder serves a counter-notice within 28 days, the landlord needs the court's permission to forfeit or claim damages. The court will only give permission on limited grounds, for example where immediate repair is needed to prevent a substantial loss in the value of the freehold, or where the repair is cheap now but would cost far more if put off.

## What should you do if you receive a Section 146 notice?

Act quickly, keep everything in writing and take legal advice. Most leaseholders who engage early keep their home, because the courts treat forfeiture as a last resort and can grant relief.

1. **Check the preconditions.** Has the tribunal or a court decided the breach, or did you admit it? Have 14 days passed since the final decision? If not, the notice may be invalid.
2. **Check the figures.** For arrears, is the total above £350 without late fees, or is any part more than three years old?
3. **Check the content.** Does the notice clearly identify the breach and, for repairs, include the 1938 Act counter-notice statement?
4. **Diarise the deadlines.** Note the 28-day counter-notice window for repairs and the reasonable time given to remedy the breach.
5. **Remedy or dispute the breach.** Pay undisputed sums, fix what you can and put any disagreement in writing.
6. **Tell your mortgage lender.** Lenders often pay arrears to protect their security, and a lease condition may require you to tell them.
7. **Apply for relief if proceedings start.** Under section 146(2), the court can grant relief on terms it thinks fit, including payment of costs. A subtenant or mortgage lender can apply too under s.146(4).

## How should a resident director handle a breach without forfeiture?

Treat forfeiture as the last resort it is in law, and the approach most likely to go wrong. An RTM company cannot forfeit at all, because the right stays with the landlord. An RMC or Share of Freehold company that owns the freehold can, but it is suing its own members and neighbours, and the costs of tribunal and court stages can quickly outweigh the debt.

A better sequence is a clear demand, a reminder, a conversation, a payment plan and, if needed, a tribunal application to confirm the sum is payable, followed by a county court money claim. Clear records make every stage faster. Manage.Management tracks each demand, payment and reminder for every flat, so directors can see who owes what and since when. Our [service charge tools](https://manage.management/features/service-charges) keep that history in one place, and leaseholders can check their rights on our [leaseholder rights page](https://manage.management/leaseholder-rights).

Costs are changing too. In a written statement on 12 November 2026, the government said that from 1 April 2027 [landlords will in most cases need court or tribunal approval](https://questions-statements.parliament.uk/written-statements/detail/2026-11-12/hcws470) before recovering their litigation costs through a service or administration charge. Our guide to the [2026 service charge regulations](https://manage.management/blog/service-charge-regulations-2026-what-the-five-new-rules-mean-for-your-block) explains that change.

## Is forfeiture being abolished?

It is planned but not yet law. The government's [12 November 2026 written statement](https://questions-statements.parliament.uk/written-statements/detail/2026-11-12/hcws470) says the forthcoming Commonhold and Leasehold Reform Bill will abolish leasehold forfeiture and replace it with "a modern, proportionate lease enforcement system" with "appropriate safeguards and judicial oversight". The Bill is due to be introduced before Christmas 2026. Until it is passed and its forfeiture provisions are brought into force, sections 146, 167 and 168 remain the rules every landlord must follow.

## Frequently asked questions

### Can a landlord serve a Section 146 notice without going to tribunal?

Only if the leaseholder has admitted the breach, or a court or post-dispute arbitration has already decided it. Otherwise, for a long lease of a dwelling in England, section 168 of the Commonhold and Leasehold Reform Act 2002 requires a final First-tier Tribunal decision that the breach occurred, followed by a 14-day wait, before the notice can be served.

### What is the minimum debt for forfeiture of a flat lease?

In England, forfeiture for unpaid rent, service charges or administration charges is barred unless the total exceeds £350 or part of it has been payable for more than three years. This comes from section 167 of the 2002 Act and the 2004 Prescribed Sum and Period Regulations. Late-payment administration charges are ignored when testing the £350 limit.

### How long do I have to respond to a Section 146 notice?

The Act gives no fixed period. The landlord must allow a reasonable time to remedy the breach and pay compensation, judged on the facts of each case. For repair notices covered by the Leasehold Property (Repairs) Act 1938, the leaseholder has a strict 28 days from service to serve a counter-notice. Take legal advice as soon as the notice arrives.

### Can an RTM company forfeit a lease?

No. An RTM company takes over management functions, but the right to forfeit stays with the landlord, so the RTM company cannot serve a Section 146 notice or bring forfeiture proceedings. It can still recover unpaid service charges, for example by applying to the First-tier Tribunal to confirm the sum is payable and then bringing a county court money claim.

### Will the Commonhold and Leasehold Reform Bill end forfeiture?

The government says it will. Its 12 November 2026 written statement commits to abolishing leasehold forfeiture and replacing it with a proportionate lease enforcement system with judicial oversight. The Bill is due to be introduced before Christmas 2026, so the change needs Parliament's approval and a start date. Until then, the current Section 146 rules continue to apply.

## Section 146 notices: the short answer

A Section 146 notice is the last formal step before forfeiture, not the first. For a flat on a long lease, the landlord must prove the breach or the debt, wait 14 days, clear the £350 or three-year threshold for arrears, and serve a notice that names the breach precisely. Leaseholders who check those steps and act quickly are usually well protected. Directors who keep clear records rarely need to get anywhere near forfeiture, and soon the law should take it off the table altogether.

Last reviewed: 15 November 2026 by Franklin Baeza, Manage.Management. This article is general information for England and Wales, not legal advice. Check the current position with a qualified adviser before acting.

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Source: [Section 146 Notice: What Must Happen Before Forfeiture](https://manage.management/blog/section-146-notice-what-must-happen-before-forfeiture) on the Manage.Management blog.