Ending a Lease Flashcards
What are the options for ending a lease?
Fixed Term only:
* Break Clause
* Effluxion of Time
Periodic Term only
* Notice to Quit
Other
* Merger
* Surrender
* Forfeiture
What is notice to quit? What is the procedure?
Either party serves a notice to quit on the other and the period of notice will depend on the lease term:
- weekly = 1 week for commercial / 4 weeks residential
- monthly = 1 month
- quarterly = 1 quarter
- yearly = 6 months
Date to vacate must either be on the first or last day of the term.
What is surrender? What is the procedure?
Where both parties agree to end the lease early.
Deed of surrender required + tenant will often pay a premium to the landlord.
What is merger?
Where the tenant acquires the landlord’s freehold title in the land so that the interests merge.
What is effluxion of time?
Where the lease comes to an end on the date specified in the lease. If the tenant has security of tenure and simply continues, they will have a tenancy at will. If the landlord demands rent, the tenant may end up with a periodic tenancy.
What is a break clause?
A clause in a lease which allows the landlord / tenant (unilateral) or both parties (mutual) to end the lease before the lease term expires. The break clause may be fixed (i.e on 5th March every 5 years) or rolling (at any time after 5th March 2025) and may contain conditions, including notice required.
