Lease surrender

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    Lease surrender

    I am on a S25 notice expiring in 10 weeks.

    The Landlord and I have tried to negotiate but have not even managed to agree Head of Terms.

    I have had enough, so not sure of the best way to surrender Lease.

    Should I just stop communicating with Landlord and just let S25 expiry date pass and then contact them and arrange for me to give them the keys to the property?

    Or do I have to give them a few months notice?

    This is a 20 year old lease held over for last 10 years.

    #2
    Have you made any agreement with the landord to extend the statutory period during which an application to the court must be made?

    Comment


      #3
      No and there is no agreement with the Landlord.

      He is probably waiting for me to continue negotiations about renewal.

      I cannot renew for many reasons and have to just surrender, but want to do it properly and want to tell him I need to surrender and vacate on 31/03/20 but as yet have not told him.

      There are no disputes, they have all been resolved.

      No outstanding rent,infact paid right up till end of S25 notice 31/03/20.

      There are so many reasons why I just have to surrender the lease.

      Comment


        #4
        "Surrender" is not the strictly correct legal term here as it is not a unilateral act and requires the landlord to accept it.

        In fact there is nothing you need to do. If the tenant does not take action to protect his position the landlord's section 25 notice brings the lease to an end on the day the notice expires. However, a letter to the ladlord explaining that you have decided not to take a new lease and will be vacating the property by the date the section 25 notice expires will not go amiss.

        Comment


          #5
          Thank you,

          So ,I don't have to give him a specific amount of notice ,like 3 months?he will have to accept the property back if I do nothing?

          By trying to negotiate,I have not protected my position?

          So ,to be polite I can inform him Just 1 month before?

          The reason I am thinking of giving him notice now is to ask him if he would like me to leave the shop fully fitted and therefore easier for him to let it as the same kind of business.

          As I have informed him in the past there are very few types of business that will survive on this parade and I have witnessed this over 30 years.

          If I leave him the property fully fitted out, he or his ingoing tenant can pay me for fittings and equipment.

          Otherwise I will need to remove all my fittings and equipment.

          I would accept 4 thousand pounds for this, when the correct used value is about 8 thousand.

          Do you think that would sound attractive to a Landlord?obviously he would need to agree that his best chance to let this property ,is as the same business that has operated here for many years.

          Comment


            #6
            So ,I don't have to give him a specific amount of notice ,like 3 months?he will have to accept the property back if I do nothing?

            Correct

            By trying to negotiate,I have not protected my position?

            No. Protection is obtained by applying to the court.

            So ,to be polite I can inform him Just 1 month before?

            Yes.

            The reason I am thinking of giving him notice now is to ask him if he would like me to leave the shop fully fitted and therefore easier for him to let it as the same kind of business.

            As I have informed him in the past there are very few types of business that will survive on this parade and I have witnessed this over 30 years.

            If I leave him the property fully fitted out, he or his ingoing tenant can pay me for fittings and equipment.

            Otherwise I will need to remove all my fittings and equipment.

            I would accept 4 thousand pounds for this, when the correct used value is about 8 thousand.

            Do you think that would sound attractive to a Landlord?obviously he would need to agree that his best chance to let this property ,is as the same business that has operated here for many years.

            Difficult to say what you should do without knowing what is involved. A bit of a difficulty is that if you tell the landlord you are leaving he can just sit back until near the expiry date forcing you to make a decision whether to leave the fixtures or accept his reduced offer for them. Negotiating with any new tenant is not going to be feasible. Once the tenancy ends the right to remove the fixtures ends. Technically all fixtures installed by the tenant belong to the landlord anyway subject to the right to remove some of them during the tenancy. What are we taking about here?

            Comment


              #7
              A Fully fitted out Beauty Salon with Mirrors,Styling Chairs,Expensive Pedicure Chairs,Beauty Couches,Nail desks and 4 chairs,
              4 Client waiting area chairs,2 Hair wash chairs with basins and all equipment to run a Beauty Salon catering for Beauty,Nails and Hair also including some stock .All Salon furniture is in great condition and stylish, not old school.

              And it doesn't end there,If he wants to buy the equipment and he leaves it all in situ,he has a fully fitted kitted out attractive Salon for a new tenant (probably Beautician/Hairdresser/Nail Technician/,the list goes on and on to walk into with a good Client base.

              He would be mad to try to let to anyone other than someone in this trade, this will carry on making a profit as a salon for years and years.

              I would even help him let the business and probably find him a tenant.

              The only things that can probably be described as fixtures are the mirrors, which I can remove and make good in an hour.

              Comment


                #8
                If all you describe are fixtures they are fixtures you are entitled to remove them before the tenancy ends. If they are not fixtures you can remove them anyway - in practice you need to remove them before the tenancy ends if the landlord does not want to buy them.

                Comment


                  #9
                  Thank you very much for that,

                  I will wait and then give him a months notice.

                  I will also give the Landlord an option at the same time,firstly I want the lease ended, which sounds easy to do, by me just giving him1 months notice but I will offer him this option.

                  1 Lease is ended.

                  2. He issues me a license /agreement ,
                  on the same terms of the ended lease but for 1 month at a time, with me paying up front on 1st of every month.














                  I cannot commit to more than that as my staff situation is very uncertain.

                  I am assuming he can do that without creating a tenancy,(or just a 1 month tenancy)which would include me giving him just 1 months notice.

                  I can only be committed for 1 month at a time and I think on that basis the business could carry on for anything from 1 to 6 months.


                  Does this sound worthwhile to the Landlord?







































                  Comment

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