4.3 Lease Termination Flashcards
What may be payable on surrender
Premium from one party to another
What must be included in A2S if contracting out of ‘54 Act
Confirmation that procedure carried out
Why might L delay notification to T that has not validly exercised break clause
Delay until too late to exercise if want T to stay
If new T coming in + OT surrendering, how can you link the two
A4L conditional on surrender + A2S simultaneously exchanged w/ A4L
Two ways of expressly surrendering
Deed or TR1
How do you impliedly surrender
Handing in keys + vacating
Three ways for lease to terminate otherwise than by expiry of fixed term/service of notice under ‘54 Act
Forfeiture, surrender and break clause
What should payor ask for if has to pay VAT on surrender premium
VAT invoice, copy of option and HMRC receipt
Why will L want 4(1)(b) LP(MP)A to apply to surrender
T covenants no subsisting breaches, so if any breaches, L has right of action for T breaching
Who can usually exercise break clause
Either party
When will leasehold title have to be closed after surrender
If lease reg, i.e. over 7 years
What should L do if T has not validly exercised break clause
Contact T to explain lease not terminated and continue to comply w/ covenants
Overpay rent break clause
M&S v BNP
When will issues with SoT arise in surrender
If using A2S and CT’s lease is protected by ‘54 Act
Case on conditions of break clause
Mannai v Eagle Star