Q&As

A landlord grants lease of a property comprising commercial premises on the ground floor with a flat above. The tenant has sublet the flat on an AST (which is permitted by the lease). The landlord and the tenant are proposing to agree a surrender of the lease. How will this affect the AST?

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Produced in partnership with Desmond Kilcoyne
Published on LexisPSL on 10/05/2017

The following Property Q&A Produced in partnership with Desmond Kilcoyne provides comprehensive and up to date legal information covering:

  • A landlord grants lease of a property comprising commercial premises on the ground floor with a flat above. The tenant has sublet the flat on an AST (which is permitted by the lease). The landlord and the tenant are proposing to agree a surrender of the lease. How will this affect the AST?

It is unlikely to affect the assured shorthold tenancies (AST).

Clearly, whether the head-lease is presently protected under the Landlord and Tenant Act 1954 (LTA 1954) or not, the head-lease can be brought to an end by surrender (LTA 1954, s 24(2)). This will require an express surrender (ie by deed) or a surrender by operation of law (eg tenant vacating and handing back the keys). By contrast, where the head-lease has at some point in time been protected under the LTA 1954, an agreement to surrender will be rendered void by LTA 1954, s 38 unless the requirements of LTA 1954, s 38A have been complied with (Note: where the LTA 1954 has never applied to the head-lease, an agreement to surrender may be specifical

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