Surrender

Surrender

A surrender is a transfer by a tenant to its landlord. The lease 'merges' into the landlord's interest. Rent will cease accruing at the point of surrender, as will liability for the performance of covenants in the lease. However, in the absence of an express release, both parties remain liable for breaches arising prior to the surrender.

Surrender or merger of a head lease does not end any underlease granted out of it. The underlease continues with covenants becoming directly enforceable under section 139 of the Law of Property Act 1925 (LPA 1925). This applies whether or not the underlease has other statutory protection.

Types of surrender

A surrender may be express or implied (occur by operation of law).

An express surrender of a lease must be by deed, unless the lease itself is of a kind that could be created without a deed, in which case the surrender must still be in writing. See Practice Note: Lease surrenders.

A surrender by operation of law occurs when the unequivocal conduct of both parties is inconsistent with the continuation

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