Lease variations—surrender and re-grant issues
Lease variations—surrender and re-grant issues

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

  • Lease variations—surrender and re-grant issues
  • Increasing the demise or the term
  • Decreasing the demise or term
  • No requirement for writing
  • Erroneous lease plans
  • Consequences of implied surrender and re-grant for the landlord
  • Consequences of implied surrender and re-grant for the tenant
  • Position where reversion or lease is charged
  • Reversion is charged
  • Lease is charged
  • More...

The implied or deemed surrender and re-grant of a lease arises where an agreed variation of the terms of the original lease is so fundamental that the law regards it as being wholly inconsistent with the original lease. As a result, the original lease is deemed to have been surrendered and a new lease is deemed to have been granted between the original parties on the terms of the original lease as varied.

Increasing the demise or the term

Alterations to the estate granted are examples of this. Therefore, variations which will definitely bring about a surrender and re-grant are:

  1. an increase in the extent of the demise (this applies even if the additional area is being added so as to compensate for a part of the original demise which the tenant is giving back to the landlord), or

  2. an increase in the length of the term of the original lease

Except where a variation alters the estate granted (as above), the question of whether a variation effects an implied surrender and re-grant depends on the intention of the parties.

Examples of variations which will not give rise to an implied surrender and re-grant are:

  1. an increase in rent (unless the variation is oral and the tenancy cannot be varied orally)

  2. a reduction in rent (unless the reduction in rent is accompanied by a giving up of possession

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