Termination of a Lease

Introduction

A lease does not last forever. This chapter examines **how a lease comes to an end** — both at **common law** and by the landlord's principal statutory remedy, **forfeiture**. You will master the four common-law methods of termination — **effluxion of time**, **notice to quit**, **surrender** and **merger** — and then the detailed mechanics of **forfeiture** for non-payment of rent and for breach of other covenants, including the **s. 146 Law of Property Act 1925 notice**, the tenant's right to **relief** and the effect of forfeiture on **sub-tenants**. The chapter closes by applying these rules in the context of business tenancies protected by **Part II of the Landlord and Tenant Act 1954**, where the **s. 25 notice** and the tenant's **security of tenure** become central.

Assessment focus

For SQE1 FLK2 you must be able to **advise a landlord client** on the methods available to bring a lease to an end, and **advise a tenant client** on how to resist or obtain **relief from forfeiture**. Questions are single best answer questions set in **realistic client-based scenarios** — typically a commercial landlord facing a defaulting tenant. You should be able to: distinguish the **four common-law methods**; state the procedural requirements for forfeiture for **non-payment of rent** (formal demand / its exceptions / peaceable re-entry / court order) and for **breach of other covenants** (the **s. 146 LPA 1925 notice**, remediable v irremediable 'stigma' breaches); explain **waiver**, **relief** and the position of **sub-tenants**; and calculate the **timing of a s. 25 notice under the 1954 Act** (not less than 6 nor more than 12 months before the termination date). This is a closed-book assessment.

Study tips

1) Memorise the **four common-law methods**: effluxion of time, notice to quit, surrender, merger — and which require a **deed** (surrender). 2) For **forfeiture for non-payment of rent**, remember the **formal demand** rule and its **two exceptions** (lease excludes the requirement; or rent at least **6 months** in arrears). 3) For **other covenants**, a **s. 146 LPA 1925 notice** is required first — but **not** where the sum is reserved as **rent** in the lease. 4) Distinguish **remediable** breaches from irremediable **'stigma'** breaches (e.g. immoral user). 5) **Peaceable re-entry** is only realistic for **commercial** premises; using or threatening violence is an offence under the **Criminal Law Act 1977**. 6) For the **1954 Act**: a **s. 25 notice** must be served **not less than 6 nor more than 12 months** before the date of termination; **double compensation** is payable where the tenant has occupied for **14 years or more**.