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Commercial Property Management

Terminating the Letting

There are many legal and administrative issues to consider when a Lease is coming to end. 

This Terminating the Letting subfolder contains Section 25 Notices which can be used by the Landlord to bring the Lease to an end, a Deed of Surrender which can be used where the parties agree to terminate the Lease before its expiry date, a Break Notice and Letters terminating a Tenancy at Will or a Licence.

No matter how the Lease is brought to an end, Dilapidations are likely to be an issue. The Landlord will want to be compensated if the Tenant has not complied with its repairing obligations in the Lease. The Schedule of Dilapidations, Quantified Demand and Guidance on Dilapidations will assist the Landlord in making a Dilapidations claim against the Tenant.

Terminating the Letting is part of Property. Just £38.50 + VAT provides unlimited downloads from Property for 1 year.

Frequently Asked Questions

My commercial tenant's lease is ending. How do I bring it to an end if it is protected by the 1954 Act? +
Serve a section 25 notice. For a business tenancy protected by the Landlord and Tenant Act 1954 you end it by a prescribed section 25 notice stating whether you oppose renewal and, if you do, on which statutory ground. Timing and form are strict. This sub-folder has section 25 notices, plus surrender and break documents for other routes.
Can the landlord and tenant just agree to end the lease early? +
Yes, by surrender. A deed of surrender ends the lease before its term expires by agreement, releasing both sides from future obligations from the surrender date. It should deal with arrears, dilapidations and any payment. This sub-folder has a deed of surrender for use where both parties agree to terminate early.
There is a break clause. How do my tenant, or I, end the lease on the break date? +
By serving a valid break notice that meets every condition in the clause, on time and in the right form. Break clauses are strictly construed, and missing a condition, such as being up to date with rent or giving vacant possession, can void the break. This sub-folder has a break notice to help you comply.
The tenant left the premises in poor repair. Can I claim the cost? +
You can bring a dilapidations claim, but your damages are capped by section 18 of the Landlord and Tenant Act 1927 at the amount by which the disrepair reduces the value of your reversion, and nothing is recoverable if you are about to demolish or redevelop. The Dilapidations Protocol governs the claim. This sub-folder has a schedule of dilapidations and quantified demand.
What is the difference between a schedule of dilapidations and a quantified demand? +
The schedule lists the breaches of the repairing covenant, the remedy and the landlord's costings. The quantified demand sets out and substantiates the money claimed. The Dilapidations Protocol keeps the two separate and expects the tenant to respond within a reasonable time. This sub-folder has both documents plus guidance on dilapidations.
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