Forfeiture of Lease Indemnity Policy

Background:

Sometimes a ‘chain’ of leases exists and Forfeiture of Lease in respect of a sub-lessee can arise because of something that a lessee further up the chain does, or fails to do. In some cases this can give rise to the forfeiture of all of the leasehold interests.

In what circumstances is the product needed?

Where there is a danger that a lessees tenure may be lost as a result of the activities of a superior lessee resulting in the superior/head lease being forfeited.

Product features:

Risk cover: losses resulting from the loss of the leasehold interest or any amount paid with the agreement of insurers to secure the on-going lease, costs and expenses.