SDLTM17080 - Miscellaneous Provisions: Surrender and regrant of a lease

Surrender and re-grant may occur expressly, where the landlord grants a new lease to the tenant in place of the old one. However surrender and re-grant may also occur by operation of law. This is because the law deems some acts to be inconsistent with the continuation of the old lease and so deems there to be a new lease.

There will be a surrender and re-grant by operation of law where:

  1. the term of the lease is extended (see SDLTM14090) (but not where a reversionary lease is granted to commence on expiry of the old lease: see SDLTM17070);
  2. the area of the demised property is extended (but not where there is a new lease of separate property).

On the other hand there will not be a surrender and re-grant where:

  1. there is a variation of the rent (upwards or downwards- refer to SDLTM15010 and SDLTM15020)
  2. there is a reduction in the area of the demised property, whether this is effected by a surrender of part or by a Deed of Variation
  3. another person is added as a tenant under an existing lease.