Commercial Property Disputes: A Guide

Written by: [AUTHOR NAME], Commercial Property Solicitor, Setfords | Published: 5 August 2026 | Last reviewed: 5 August 2026 | Read time: 8 min

Commercial property disputes usually come down to a handful of recurring issues: unpaid rent, disagreements over repairs, lease renewals, and landlords ending leases early. This guide covers what each of these disputes involves, how they’re typically resolved, and when it’s time to bring in a solicitor.

Key takeaways

• Most commercial property disputes fall into a handful of categories: rent arrears, repair obligations, lease renewals, and forfeiture.
• Commercial Rent Arrears Recovery (CRAR) lets landlords recover unpaid rent without going to court, but only for pure rent, not service charges or insurance.
• Forfeiting a lease usually needs an express clause in the lease, and doing it the wrong way, or accepting rent afterwards, can accidentally waive the right.
• Business tenants with security of tenure under the Landlord and Tenant Act 1954 have a right to renew their lease, and landlords can only oppose it on specific statutory grounds.
• Courts expect both sides to follow the relevant pre-action protocol and try to resolve things through negotiation or mediation before litigation starts.

What counts as a commercial property dispute?

A commercial property dispute is any disagreement between a landlord and tenant, or between neighbouring owners, over a commercial lease or property. That covers everything from a tenant falling behind on rent to a full dispute over whether a lease should be renewed at all.

Most disputes fall into recognisable patterns, each with its own established process. Knowing which category your situation falls into is usually the first step towards resolving it, since the right process and the right leverage look very different depending on the type of dispute.

Rent arrears and CRAR

When a commercial tenant falls behind on rent, landlords have a specific tool available that isn’t open to residential landlords: Commercial Rent Arrears Recovery, or CRAR. Under the Tribunals, Courts and Enforcement Act 2007, a landlord can instruct certificated enforcement agents to take control of a tenant’s goods and sell them to recover the debt, without needing to go to court first.

CRAR comes with conditions. The lease must be in writing, the property must be wholly commercial (not mixed residential and commercial), and the landlord must give at least 7 clear days’ notice before enforcement agents can act. Crucially, CRAR can only be used to recover pure rent, not service charges, insurance, or other sums the lease might describe as “rent” but which don’t meet the legal definition.

Using CRAR also has a consequence worth knowing: it generally waives the landlord’s right to forfeit the lease for those same arrears. Landlords need to decide upfront which route best suits their situation, since the two don’t sit well together.

Dilapidations: disputes over repair

“Dilapidations” refers to a tenant’s failure to keep a property in the state of repair required by the lease, and it’s one of the most common sources of dispute at the end of a commercial tenancy. Landlords typically instruct a surveyor to prepare a Schedule of Dilapidations, listing the alleged breaches and the cost of putting them right.

These claims are governed by the Dilapidations Protocol (formally the Pre-Action Protocol for Claims for Damages in Relation to the Physical State of Commercial Property at Termination of Tenancy). It gives the tenant 56 days to respond to the schedule and encourages both sides to meet and try to agree the disputed items before anyone considers court. Courts take a dim view of parties who skip this step, and it can affect who pays the costs even if the underlying claim succeeds.

Dilapidations claims can run into significant sums, so it’s worth tenants keeping a record of the property’s condition from day one, ideally through a Schedule of Condition agreed at the start of the lease.

Lease renewals and the 1954 Act

Many business tenancies in England and Wales are protected by Part II of the Landlord and Tenant Act 1954, which gives tenants the right to renew their lease when it ends, rather than simply being asked to leave. A landlord who wants to end the tenancy, or offer new terms, has to serve a formal notice and can only oppose renewal on one of seven specific statutory grounds.

Some of these grounds relate to tenant fault, such as persistent delay paying rent or failing to keep the property in repair. Others don’t involve fault at all, most commonly the landlord’s genuine intention to redevelop the property or occupy it themselves. Where a landlord relies on one of the no-fault grounds, the tenant is often entitled to statutory compensation for having to leave.

These cases are frequently contested and can take a long time to resolve if they go all the way to trial, so early advice on which grounds apply, and how strong they are, tends to save both time and money later.

Forfeiture

Forfeiture is a landlord’s right to bring a lease to an early end because the tenant has breached it, most commonly through unpaid rent. It only exists where the lease contains an express forfeiture clause, and the process differs depending on the type of breach.

For non-payment of rent, a landlord can often forfeit by “peaceable re-entry”, physically retaking the property and changing the locks, typically once rent has been unpaid for the period set out in the lease (often 14 to 21 days). For other breaches, the landlord usually needs to serve a formal notice giving the tenant a reasonable chance to put things right before applying to court for possession.

Forfeiture is unforgiving of mistakes. A landlord who accepts rent, or otherwise acts as though the lease is continuing after becoming aware of a breach, can lose the right to forfeit altogether. Tenants, meanwhile, can usually apply to court for relief from forfeiture, and are generally expected to do so promptly, often within six months.

Boundary and other disputes

Not every commercial property dispute involves a landlord and tenant. Boundary disputes between neighbouring commercial owners, disagreements over rights of way or access, and disputes about works affecting a shared wall or structure are all common too.

These disputes often turn on the wording of title documents and historical plans, which can be surprisingly imprecise. Where building works are involved, the Party Wall etc. Act 1996 sets out a formal process for notifying neighbours and resolving disagreements before work starts, which can prevent a dispute from arising in the first place.

Resolving disputes without court

Court proceedings are usually a last resort in commercial property disputes, and in some cases (like dilapidations), following the pre-action protocol is effectively mandatory before you can issue a claim at all.

Mediation is widely used in this area and tends to work well, since most parties have an ongoing commercial relationship or reputation to protect, even mid-dispute. Expert determination (where a surveyor or other expert decides a specific technical question) is also common in disputes over rent reviews or dilapidations valuations, since it’s often faster and more focused than litigation.

Common mistakes to avoid

1. Accepting rent after becoming aware of a breach.
This can waive a landlord’s right to forfeit the lease, even where the breach was serious.

2. Ignoring a Schedule of Dilapidations.
Missing the 56-day response window can weaken your negotiating position significantly.

3. Ignoring a section 25 or section 26 notice.
These come with strict time limits, and missing them can affect your right to renew or oppose a lease.

4. Ignoring a landlord and tenant dispute at repair stage, hoping it’ll resolve itself.
Waiting until the end of the lease usually means a bigger, more expensive dispute rather than a smaller, earlier one.

5. Skipping the relevant pre-action protocol.
Courts can penalise parties on costs for not following the correct process, even if their underlying claim is a good one.

When to speak to a solicitor

Commercial property disputes tend to get more expensive the longer they run, and early advice often changes the outcome. It’s worth speaking to a solicitor if:

• You’ve received a Schedule of Dilapidations, or you’re a landlord preparing to serve one.
• Your tenant is behind on rent and you’re weighing up your options.
• You’ve received a section 25 or section 26 notice about a lease renewal.
• You’re considering forfeiting a lease, or you’re a tenant facing forfeiture.
• You’re in a boundary or access dispute with a neighbouring property owner.

Understand your options and your timeline. Talk to a Setfords solicitor when you’re ready, whatever stage you’re at.

FAQs

Can a landlord evict a commercial tenant without going to court?

In some circumstances, yes. Forfeiture by peaceable re-entry doesn’t require a court order for non-payment of rent, provided the lease allows it and the property is wholly commercial.

What’s the difference between CRAR and forfeiture?

CRAR lets a landlord recover unpaid rent by seizing goods, while the lease continues. Forfeiture ends the lease altogether. Using CRAR generally waives the right to forfeit for the same arrears.

Does a business tenant always have the right to renew their lease?

Not always, but many do under the Landlord and Tenant Act 1954, unless the lease has been specifically excluded from that protection or the landlord successfully opposes renewal on a statutory ground.

How long does a tenant have to respond to a Schedule of Dilapidations?

Under the Dilapidations Protocol, tenants are generally given 56 days to respond before the matter can proceed towards litigation.

Do commercial property disputes always end up in court?

No. Many are resolved through negotiation, mediation, or expert determination, and in some categories of dispute, following a pre-action protocol first is effectively required.

About the author

[AUTHOR NAME], Commercial Property Solicitor, Setfords

[AUTHOR BIO: one or two sentences on their experience and approach to commercial property matters.]

Last reviewed: 5 August 2026.

This article is general information about commercial property disputes under the law of England and Wales and is not legal advice. Leases and circumstances vary considerably, so please speak to a qualified commercial property solicitor about your specific situation.