A landlord and tenant can agree for a lease to be surrendered
before the term ends.
It may be the case that the tenant wishes to vacate the commercial property early as it is moving
premises, or the landlord wants the tenant to leave early so it can
redevelop the site.
In these circumstances, the surrender will normally be
documented in a deed of surrender.
There are a few points that landlords and tenants should
consider when agreeing to a lease surrender.
Premiums
The parties will need to agree on whether there will be a
premium paid in return for the other party agreeing to the
surrender.
The landlord may want the tenant to pay a premium as a condition
of agreeing to the surrender, or the parties may negotiate for the
landlord to pay the tenant a 'reverse premium' as an
inducement for surrendering the lease early.
