Lease surrender negotiations

If a tenant wishes to surrender their lease before the date on which it is contractually due to expire, a written agreement to this effect should be reached with the landlord and signed by both parties. It’s important in these circumstances to give consideration to any third party interests and tax implications which may be involved.

If the landlord accepts a lease surrender, the tenant is no longer liable to pay rent or adhere to covenants from the date agreed. The landlord will be able to pursue the tenant’s guarantor for unpaid rent or costs related to covenant breaches up to the date when the lease is surrendered. However, this is often a complex situation which will require expert advice to resolve.