A formal deed of surrender is a written agreement between the landlord and tenant setting out the terms upon which the tenant surrenders the lease and hands back the property to the landlord. Terms can be agreed regarding payment of monies from either landlord to the tenant or tenant to the landlord, depending on the circumstances and the reasons why the parties have reached such an agreement.
From a tenant’s point of view, a deed of surrender should ideally contain a release from all continuing obligations and subsisting breaches under the terms of the lease. The tenant should for instance be able to walk away from the lease without the fear of a large dilapidations claim in the future. Whether this is achievable will depend upon the circumstances of the case and the bargaining position of both parties.
Deeds of surrender can be complicated documents. It is therefore important to seek expert legal assistance when preparing a deed of surrender to ensure that the deed accurately records the terms of the agreement and that your interests are protected both now and in the future.
