1954 Act—surrender of business tenancies
1954 Act—surrender of business tenancies

The following Property Disputes practice note provides comprehensive and up to date legal information covering:

  • 1954 Act—surrender of business tenancies
  • When LTA 1954 applies on surrender—agreements to surrender
  • When Landlord and Tenant Act 1954 (LTA 1954) does not apply on surrender
  • Straight to surrender
  • Contracted out leases
  • Effect of LTA 1954 on agreements to surrender a protected business lease
  • Parties to the agreement
  • The advance notice procedure
  • The warning notice
  • The tenant’s declaration
  • More...

When LTA 1954 applies on surrender—agreements to surrender

Under section 24 of the Landlord and Tenant Act 1954 (LTA 1954), if a lease is not contracted out of LTA 1954, the lease can only be brought to an end:

  1. using one of the methods provided for under the LTA 1954, ie section 25 notice, section 26 request or section 27 notice, or

  2. by way of surrender or forfeiture, or tenant’s notice to quit

The tenant will have a statutory right to renew its lease at the end of the term, unless the landlord can successfully oppose the grant of a new lease under one or more of the section 30 grounds. For more information, see Practice Note: LTA 1954 business lease renewal—termination.

Accordingly, if the landlord and tenant want to enter into an agreement to surrender that protected lease, they must comply with the contracting out procedure because by surrendering the lease, the tenant is giving up its statutory right to renew.

If the contracting out procedure is not properly followed, the agreement for surrender is void.

When Landlord and Tenant Act 1954 (LTA 1954) does not apply on surrender

Straight to surrender

If the parties proceed straight to a deed of surrender (with no prior agreement) or if there is a surrender by operation of law, then there is no need to comply with the statutory contracting out process and

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