Termination of Leases Flashcards
What are the methods of lease termination?
1) Effluxion of time
2) Break clause
3) Notice to quit
4) Express surrender
5) Surrender by law
6) Merger
What is the effluxion of time?
Lease ends automatically at the end of the fixed term
What happens at effluxion of time for unprotected tenant?
Ends completely
What happens at effluxion of time for unprotected tenant if landlord allows continued occupation?
Tenancy at will unless rent is accepted, which then becomes a periodic tenancy
What is the risk for landlords accepting rent post-term?
May unintentionally create a periodic tenancy with security of tenure
What is a break clause?
Allows lease to end before expiry of contractual term
What does a break clause require?
A positive action by a party with break right
What happens in break clause if tenant / protected tenant breaks lease?
Lease ends (even if protected)
What happens in break clause if landlord breaks lease?
Only ends contractual term – protected tenant may still hold over
What is notice to quit?
Used to terminate periodic tenancies
Who can serve notice to quit?
Landlord or tenant
What is effect of notice to quit in a protected tenancy?
Only ends the periodic tenancy, not occupation – tenant can hold over
What is the default notice period for periodic tenancies?
1) Weekly (residential) – 4 weeks
2) Weekly (others) – 1 week
3) Monthly – 1 month
4) Quarterly – 1 quarter
5) Yearly – 6 months
What else must be served with notice to quit for protected periodic tenancies?
Hostile s25 notice
What are the types of surrender?
1) Express surrender
2) Surrender by operation of law
What is an express surrender? What is needed?
Voluntary agreement between landlord and tenant to end lease – deed required
What is a surrender by operation of law?
Both parties act in inconsistent way with lease continuing – no deed required
Is surrender effective if protected tenancy?
Yes
What is reverse premium?
Sum paid by landlord to tenant to induce them into the property
What is a merger?
A lease ends when tenant acquires landlord’s superior interest, or third party acquires both leasehold and superior interest
