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. A surrender by operation of law cannot be one sided; both the landlord and the tenant must agree to the surrender.

Documentary evidence required

Where a new lease has been granted or the application is made with the consent of both the landlord and the tenant Land Registry will require a letter that no deed of surrender was entered into. The letter can be from the conveyancer acting for either party. Otherwise a statutory declaration is required which must:

specify the consideration paid (if any)
confirm that no deed of surrender was entered into
set out details of when and how the premises were vacated and the keys returned if the tenant was occupying the property
confirm that the rent payable in any sub-lease is now being paid direct to the landlord.

The original lease and counterpart should be lodged if it is in your possession. Otherwise their whereabouts must be accounted for.

If the lease is registered but the landlord's title is unregistered, documentary title to the landlord's title will also be required.

Application forms

Form AP1 is required to close any registered leasehold title. If a new lease is granted, only one form is required to cover both applications.
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.

Stamp duty land tax

A surrender by operation of law is a land transaction for the purposes of SDLT (s.43(3)(b) of the Finance Act 2003).

If the surrender is one of the following, no SDLT evidence is required in respect of the surrender, whether or not the surrender took place before or on or after 12 March 2008:

a new lease of the same property has been granted in consideration of the surrender; or
a deed of variation of lease takes effect as a surrender and re-grant.

An SDLT5 (where required) must be produced in respect of the new lease.

Additionally, no SDLT evidence is required for the surrender of a lease where the surrender took place on or after 12 March 2008 and either:

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.