Surrender of Commercial/Business Lease

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What Is a Surrender of Commercial/Business Lease?

A surrender of a lease occurs when by mutual agreement with the Landlord, the Tenant gives up the term of his lease to his Landlord so that the term merges in the reversion held by the Landlord.

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What is the process of surrendering a lease?

The surrender of a commercial business lease can take place in two ways:

1. Formally by Deed: this is called an Express Surrender

2. By Operation of Law: this is called an Implied Surrender.

A Surrender of a lease by this method is determined where the conduct of both parties to the lease is inconsistent with the terms of the lease. For example, the Tenant may leave occupation of the premises and the Landlord may take over possession of the premises. The Landlord must show a clear intention to accept the surrender of the lease, and the parties’ conduct is looked at objectively.

On a surrender the rent ceases and the Tenant is released from their liability for the covenants in the lease. However, where the surrender does not expressly take place by Deed, both parties remain liable for breaches arising before the surrender. This is why it is important for the Deed of Surrender to be carefully drafted to include terms that settle any outstanding breach.

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Why Adam Bernard Solicitors?

  • Our team of conveyancing solicitors and property lawyers are experts within this field with years of experience in handling the claims of clients.
  •  We have achieved numerous successes for clients as evidenced through our client testimonies.
  •  Whilst we do not take legal aid, we may be able to take on your case on a no win no fee agreement. This means we will only take payment once we are successful in getting you your compensation.

Get in touch with our expert Surrender of Commercial/Business Lease Solicitors today.