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. The deed of surrender must make it clear that the tenant is surrendering the lease.

Documentary evidence of title required

Documentary title is required to show that the lease has been surrendered and with the consent of the landlord. Normally this consent takes the form of the landlord signing the deed. Otherwise a formal written consent must be provided. The lease and counterpart must also be lodged. If they are not available their whereabouts must be accounted for.

Application forms

Form AP1 is required to close any registered leasehold title.
If the lease is not registered, but is noted on the landlord's registered title, only a form CN1 is required to cancel notice of the lease. Where the lease is noted as a Unilateral Notice, form UN4 or UN2 will be required instead of a form CN1.
If the lease is not registered but the landlord's title is being registered as a first registration, the application for surrender can be made on the form FR1.

Other requirements

Surrender may not be possible if all incumbrances affecting the leasehold estate have not been dealt with; ie. a charge, caution, or restriction etc. A discharge, consent or release as appropriate must be provided.
If the leasehold estate is subject to a Form A restriction, surrender is a 'disposition' for the purposes of the restriction. If the surrender is for capital money and is only by a sole registered proprietor, closure of the leasehold title will not be possible.

Stamp duty land tax

SDLT evidence is not required for the surrender of a lease by deed where the surrender took place on or after 12 March 2008 and:

the lease was originally granted for a term of 7 years or more; and
the consideration for the assignment or surrender, other than any rent, is less than £40,000; or
The lease was originally granted for a term of 7 years or less; and
The consideration for the assignment or surrender does not exceed the zero-rate threshold.