Termination of a lease-FS

Question 1

Effluxion of Time?

Answer 1

Termination of a fixed-term lease by the simple expiry of the contractual term. No notice is required because the tenant is already aware of the agreed term.

Question 2

When is a notice to quit required to terminate a lease?

Answer 2

When a lease does not end automatically (e.g., periodic tenancy), the landlord or tenant must serve a notice to quit, giving the required notice period per the lease or common law

Question 3

Common Law Notice Periods (where lease is silent):

Answer 3

• Yearly tenancy → 6 months’ notice
• Quarterly tenancy → 1 quarter’s notice
• Monthly tenancy → 1 month’s notice
• Weekly tenancy → 1 week’s notice

Question 4

What is Surrender

Answer 4

A form of lease termination where the tenant voluntarily yields up possession of the lease to the landlord, who accepts it. May be express or implied.

Question 5

What is a Merger

Answer 5

Occurs when the tenant acquires the landlord’s interest, causing the leasehold and freehold estates to merge and the lease to be extinguished.

Question 6

What is a Break Clause

Answer 6

A contractual provision in a lease that gives either party the right to terminate early, subject to conditions such as notice periods, timing, and payment of compensation.

Question 7

In what scenario is a notice to quit more appropriate than effluxion of time or a break clause?

Answer 7

When the landlord needs flexibility due to uncertainty (e.g., awaiting planning permission), a notice to quit allows lease termination based on future events.

Question 8

What are key factors to negotiate in a break clause?

Answer 8

1. Who may exercise the break (landlord, tenant, or both)
2. When it may be exercised
3. How much notice is required
4. Conditions to be met (e.g., rent paid up, vacant possession)
5. Compensation, if any, payable on termination