The following Property guidance note provides comprehensive and up to date legal information covering:
Accepting a surrender can be the quickest way for a landlord to regain possession of the premises from an insolvent tenant. It circumvents the extra requirements before the landlord can forfeit (eg the need for a court order or administrator’s consent in the case of a tenant in administration). The landlord is likely to be under pressure to conclude the surrender as soon as possible. In order to avoid problems at a later date, it should, however, consider the following issues.
There are two types of surrender, express and implied. An express surrender is void unless it is made by deed or is in writing (even if it was granted orally). An insolvency officeholder will ordinarily prefer the certainty of an express surrender, particularly where the officeholder has occupied the leased property during the course of their tenure and has been responsible for paying rent due under the lease. In other cases, where there is no value in the lease and the officeholder would prefer not to incur the costs involved in documenting an express surrender, the officeholder may be happy to rely on an implied surrender. For an example of a deed of surrender involving a company in administration, see Precedent: Deed of surrender on insolvency sales.
An implied surrender or surrender by operation of law occurs
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