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C2.1230A Leases—surrender of lease

A lease is 'surrendered' where it is disposed of, or given up, to the holder of the interest in the property which is immediately superior. This could be where a leaseholder surrenders the lease to the freeholder or the holder of a sublease surrenders it to the superior leaseholder. Where the holder of a sub-lease disposes of the lease to the freeholder, this would be an assignment rather than a surrender. The surrender of a lease involves the disposal of the lease by the tenant and the acquisition of it by the landlord, even though the lease will merge with the superior interest and cease to exist¹.

The surrender of a lease may involve a payment by the tenant to the landlord. A tenant may be willing to make such a payment if the rent has become too expensive or they have no further use for the property and cannot, or do not wish to, sublet. Alternatively, a landlord may want a tenant out of a property and so makes a payment to the