Lease surrenders

by Practical Law Property

A note that provides guidance on the legal principles and practical considerations surrounding the surrender of a lease. This note examines the two primary methods of surrender: express surrender by deed and surrender by operation of law, which is inferred from the parties' conduct. It outlines key procedural requirements, including the necessity for a deed for an express surrender and the statutory procedures for agreements to surrender under the Landlord and Tenant Act 1954 (LTA 1954). The guidance explores the wide-ranging effects of a surrender on landlords, tenants, guarantors, and mortgagees, highlighting that past breaches of covenant are not automatically released. Critically, this note details how a surrender affects existing underleases, making the head landlord the direct landlord of any undertenant pursuant to section 139 of the Law of Property Act 1925 (LPA 1925). It also addresses complex topics such as surrenders of part, deemed surrender and regrant scenarios, and associated Land Registry registration requirements.