Lease surrenders


Published by a ³ÉÈËÓ°Òô Property expert
Practice notes

Lease surrenders


Published by a ³ÉÈËÓ°Òô Property expert

Practice notes
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What is a lease surrender?

A lease surrender is a mutual agreement between the landlord and the tenant to bring the lease to an end before the expiry of the term and in a manner not contemplated by the lease (eg by exercising a break option, etc).

A surrender may be express or implied:

  1. •

    an express surrender is achieved formally, usually by deed, although this is not always necessary (see: Express surrender below)

  2. •

    a surrender by operation of law (also known as an implied surrender) occurs when the landlord and tenant by their unequivocal conduct demonstrate that they no longer regard the lease as continuing between them (see: Surrender by operation of law (Implied surrender) below)

A surrender is therefore often a negotiated agreement in circumstances where the tenant is otherwise not able to divest itself of the lease. It will often depend on the goodwill between the parties and a mutual desire to determine the lease prematurely. For some properties (often shopping centres), landlords include a provision in the lease requiring the tenant to offer to surrender

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Jurisdiction(s):
United Kingdom
Related legal acts:
Key definition:
Surrender by operation of law definition
What does Surrender by operation of law mean?

Also known as an implied surrender. It occurs when the unequivocal conduct of both parties is inconsistent with the continuation of the tenancy. It is often demonstrated by the delivery of possession by the tenant and acceptance by the landlord.

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