A lease can be determined in a number of ways. These are explained below.
Merger
This is where a leasehold estate in land and the reversionary estate both come into the same ownership and are held in the same capacity. Merger is a matter of intention in that the person holding both estates must want merger to occur. Otherwise the two titles can continue to exist separately;
(more information)
Surrender by deed
This is when a tenant surrenders a lease to the immediate landlord, who accepts the surrender. The lease is then absorbed into the reversion and determined;
(more information
Surrender by operation of law
This is when an event occurs that in law has the effect of surrendering a lease. Common examples are the grant of a new lease to the same person, an extension of the term or where the tenant vacates the property and hands in the keys
(more information)
Determination by notice
This is where a lease for a fixed term can be determined early. The most common example is where a 'break clause' in the lease allows for its early determination. Another example is where the lease has a 'frustration clause' - a clause that allows for early determination if the building is destroyed by fire or similar event;
(more information)
Effluxion of time
This is where the fixed term of a lease has expired. However, determination by effluxion of time may be affected by the provisions of Acts such as the Landlord and Tenant Act 1954 or the Local Government Act 1989, which may prolong the term beyond its original date;
(more information)
Disclaimer
This is where the tenant becomes bankrupt or insolvent and either the trustee in bankruptcy or liquidator gives up (disclaims) the lease. In this case the lease is determined;
(more information)
Forfeiture
This is usually where a tenant has failed to comply with the conditions or covenants in a lease, such as payment of the rent or maintenance of the premises, and the landlord re-enters the demised land. Forfeiture is effected either by taking court proceedings or by peaceable re-entry. When a lease is forfeit, any lease that derives from it will also be determined. For comprehensive information about forfeiture please see Land Registry Practice Guide 26 - Leases: determination.
This is the end of the chapter on determination of a lease. |