5 things you need to know about Irritancy in a Lease:
1. An irritancy or forfeiture clause is a contractual termination clause whereby the lease will come to an end if certain prescribed events occur.
2. The landlord's ability to terminate a lease is now controlled by statute in the event of non- payment if rent and breach of obligations assumed by the tenant.
3. Statute the now provides for periods of notice to be served by the landlord under threat of irritancy. Care should be taken with the service of such notices.
4. If a head lease is irritated, any derivative sub-leases also fall unless protection for sub- tenants has been pre-negotiated.
5. Secured creditors or insolvency practitioners are not protected unless there is express provision to this effect in the lease.