Lease Surrender Negotiations
We are often instructed on behalf of landlords and/or tenants to try to negotiate terms whereby the lease is brought to an end early. When a lease is surrendered the lease term comes to an end and the tenant’s interest passes to its landlord.
An agreement to surrender must be in writing pursuant to Section 2 of the Law of Property (Miscellaneous Provisions) Act 1989. When dealing with the surrender of a lease it is important to consider any third party interests including that of a mortgagee. In addition, any stamp duty land tax consequences should be considered.
On most occasions where the landlord and tenant have agreed to bring the tenancy to an end early, a formal surrender deed should be signed to give both the landlord and tenant certainty in their dealings going forward.