Lease Termination Flashcards
(38 cards)
What are the main ways a lease can be terminated?
- Effluxion of time
- Break clause
- Notice to quit (periodic tenancies)
- Surrender (express or by operation of law)
- Merger
What is effluxion of time?
When a lease ends because the fixed contractual term expires.
What happens when an unprotected tenancy ends by effluxion of time?
The landlord may require the tenant to vacate. If the landlord allows the tenant to stay and accepts rent, a periodic tenancy may arise.
What is a break clause?
A clause allowing a party to terminate a lease early, before the contractual term ends.
How do break clauses work with protected tenancies?
- Tenant’s break ends both lease and security
- Landlord’s break ends lease, but tenant can still hold over unless contracted out
What is required for notice to quit a periodic tenancy?
Depends on the lease period:
- Weekly: 1–4 weeks
- Monthly: 1 month
- Quarterly: 1 quarter
- Yearly: 6 months
Notice must expire on the first or last day of a period.
How does notice to quit interact with security of tenure?
- Tenant can serve notice to quit, even if protected
- Landlord must serve a hostile s25 notice with statutory grounds to regain possession
What is surrender of a lease?
- Express surrender: tenant gives up lease via deed
- By operation of law: both parties act as if lease has ended (e.g., landlord accepts keys)
What is a reverse premium?
- A payment by the tenant to the landlord to accept a surrender (usually when tenant wants to exit an unprofitable lease early).
What is a merger in leasehold law?
When the leasehold and freehold interests come into the same ownership and the lease ends.
What are the landlord’s primary remedies for tenant breaches?
- Damages
- Debt action
- Guarantor/rent deposit
- CRAR
- Equitable remedies
- Forfeiture
What is the measure of damages in breach of lease covenants?
To put the landlord in the position they would have been but for the breach.
What is the time limit for debt actions for rent arrears?
6 years from the date the rent became due.
Who can a landlord pursue for arrears if the current tenant is an assignee?
A former tenant under an old lease or an authorised guarantor under a new lease.
How does a landlord use a rent deposit?
To cover arrears. Tenant is expected to top up the deposit afterwards.
What is CRAR? Commercial Rent Arrears Recovery
A self-help remedy allowing a landlord to seize tenant’s goods to recover rent.
What are the conditions for using CRAR?
- Premises must be purely commercial
- At least 7 days’ principal rent owed
- Lease not already forfeited
What procedural steps are required under CRAR?
- Appointment of certified enforcement agent
- Serve 7 clear days’ notice (excluding Sundays & holidays)
- Serve another notice before selling seized goods
What is specific performance in lease law?
Court order to compel tenant to do something (e.g., carry out repairs). Rarely granted except in exceptional cases.
What is an injunction?
Court order preventing the tenant from doing something (e.g., unlawful assignment or breach of user clause).
What is forfeiture?
The landlord’s right to re-enter and terminate the lease for breach.
When is a landlord entitled to forfeit?
- Rent arrears (after any grace period)
- Breach of lease covenants (with s146 notice)
- Insolvency events
What is a section 146 notice?
Notice served for breaches (other than rent arrears), giving the tenant reasonable time to remedy.
What constitutes waiver of forfeiture?
When the landlord, knowing of the breach, acts as if the lease continues (e.g., accepting rent). This removes the right to forfeit.
