Lease termination is mostly by a unilateral act: landlord’s notice to quit or forfeiture, tenant’s break notice. Those procedures are often contentious. By contrast, a surrender is a consensual process, so shouldn’t it be simpler? Isn’t it just a matter of the tenant handing the lease and keys back to the landlord? Well, up to a point, Lord Copper.
Formalities to be observed may include obtaining the consent of any chargee, court approval where the tenant is insolvent, contracting-out of any prior surrender agreement, and of course compliance with Land Registry procedures. The VAT consequences need to be planned for, as well as any implications of a surrender and regrant, and the position of sub-tenants must also be considered. There are also issues for negotiation, which should not be forgotten: rent apportionment, pre-existing liabilities, and potentially compensation for improvements, or statutory compensation under the Landlord and Tenant Act 1954..
This webinar considers the pitfalls and the essential requirements. It will include:
- Required consents and approvals
- Registration and other formalities
- VAT consequences
- Issues to be documented upon an intended surrender and regrant
- Checklist of issues for negotiation