Q&As

A shop with a flat above is let to a business tenant who sublets the residential part and then moves out of the property three years ago. The residential tenant remains in occupation. The business tenant offers to surrender the lease which is refused. The landlord proceeds against the business tenant’s guarantor under an authorised guarantee agreement. Terms have been agreed as to arrears with the guarantor. The landlord has secured new tenants for the business part and wants to let the business premises by way of a new lease and the residential part by way of an assure shorthold tenancies directly with the residential tenant. Can the landlord now accept the previous offer to surrender the premises having refused it, or can the business tenant be deemed to have abandoned and surrendered the premises by law?

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Produced in partnership with Chris Bryden of 4 King’s Bench Walk
Published on LexisPSL on 15/03/2018

The following Property Disputes Q&A produced in partnership with Chris Bryden of 4 King’s Bench Walk provides comprehensive and up to date legal information covering:

  • A shop with a flat above is let to a business tenant who sublets the residential part and then moves out of the property three years ago. The residential tenant remains in occupation. The business tenant offers to surrender the lease which is refused. The landlord proceeds against the business tenant’s guarantor under an authorised guarantee agreement. Terms have been agreed as to arrears with the guarantor. The landlord has secured new tenants for the business part and wants to let the business premises by way of a new lease and the residential part by way of an assure shorthold tenancies directly with the residential tenant. Can the landlord now accept the previous offer to surrender the premises having refused it, or can the business tenant be deemed to have abandoned and surrendered the premises by law?

A shop with a flat above is let to a business tenant who sublets the residential part and then moves out of the property three years ago. The residential tenant remains in occupation. The business tenant offers to surrender the lease which is refused. The landlord proceeds against the business tenant’s guarantor under an authorised guarantee agreement. Terms have been agreed as to arrears with the guarantor. The landlord has secured new tenants for the business part and wants to let the business premises by way of a new lease and the residential part by way of an assure shorthold tenancies directly with the residential tenant. Can the landlord now accept the previous offer to surrender the premises having refused it, or can the business tenant be deemed to have abandoned and surrendered the premises by law?

A tenancy can be terminated by surrender, whereby the tenant agrees with the landlord that his interest under the lease will be terminated by agreement. This can be formalised by deed but this is not a requirement—provided that the parties have agreed to a surrender (and this can be evidenced in the future in the event of a challenge) the lease will come to an end. Evidence of surrender will usually entail the parties acting in a manner inconsistent with the lease having continued. A landlord continuing to

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