Lease Termination Addendum Template for England and Wales

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Key Requirements PROMPT example:

Lease Termination Addendum

"I need a Lease Termination Addendum for a commercial office space in London, where both parties have agreed to terminate the lease early on March 1, 2025, with specific provisions for the return of the £50,000 security deposit and resolution of outstanding maintenance issues."

Document background
A Lease Termination Addendum is used when parties to a lease agreement mutually agree to end their lease relationship before the original termination date. Under English and Welsh law, this document provides a formal framework for early termination, protecting both parties' interests and ensuring legal compliance. The addendum typically includes key information such as the termination date, settlement of outstanding obligations, return of deposits, and mutual releases. It's particularly important in ensuring clear documentation of the parties' agreement to terminate and their respective obligations upon termination.
Suggested Sections

1. Parties: Identification of landlord, tenant, and any guarantors

2. Background: Details of original lease and reason for termination

3. Definitions: Key terms used in the document including the Original Lease, Property, and Termination Date

4. Termination Date: Specific date and time when the lease will terminate and handover arrangements

5. Mutual Release: Release of parties from future obligations under the lease

6. Return of Deposit: Terms for return or retention of security deposit and timeline

Optional Sections

1. Outstanding Payments: Provisions for handling any rent arrears, service charges, or other payments due

2. Dilapidations: Provisions for handling repair obligations, restoration requirements, and associated costs

3. Release of Guarantors: Specific provisions for releasing guarantors from their obligations under the original lease

4. Keys and Security: Arrangements for return of keys, security cards, and other access devices

5. Removal of Tenant Property: Requirements and timeline for removal of tenant's belongings and fixtures

Suggested Schedules

1. Schedule 1 - Original Lease: Copy of the lease being terminated

2. Schedule 2 - Schedule of Condition: Current state of the property and any noted defects or damage

3. Schedule 3 - Outstanding Payments: Detailed list of any amounts owed including rent, service charges, and other payments

4. Schedule 4 - Inventory: List of landlord's fixtures and fittings to be checked during handover

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant Industries
Relevant Teams
Relevant Roles
Industries

Landlord and Tenant Act 1954: Primary legislation governing the relationship between landlords and tenants, particularly for commercial leases. Contains key provisions about security of tenure and lease termination procedures.

Law of Property Act 1925: Fundamental property law that sets out basic principles of property ownership and transfer, including requirements for legal formalities in lease termination.

Housing Act 1988: Key legislation for residential tenancies, including provisions for assured and assured shorthold tenancies and termination procedures.

Landlord and Tenant (Covenants) Act 1995: Governs the enforcement of covenants in leases and the release of parties from their obligations upon termination.

Commonhold and Leasehold Reform Act 2002: Contains provisions affecting leasehold property management and termination procedures, particularly for residential long leases.

Consumer Rights Act 2015: Relevant for residential tenancies, ensuring fairness in contract terms and transparency in termination provisions.

Deregulation Act 2015: Contains provisions affecting the termination of assured shorthold tenancies and requirements for serving valid notices.

Housing and Planning Act 2016: Contains additional provisions affecting residential tenancies and their termination.

Break Clause Requirements: Legal requirements for exercising break clauses, including strict compliance with notice provisions and conditions.

Notice Periods: Statutory and contractual requirements for minimum notice periods when terminating different types of leases.

Security of Tenure: Provisions protecting tenant's rights to remain in occupation and procedures for terminating protected tenancies.

Assignment and Subletting: Restrictions and requirements regarding the transfer of lease obligations during termination.

Service of Notices: Legal requirements for valid service of termination notices, including timing and delivery methods.

Surrender Provisions: Legal requirements for voluntary surrender of leases and documentation requirements.

Guarantor Release: Procedures and requirements for releasing guarantors from their obligations upon lease termination.

Deposit Treatment: Requirements for handling security deposits during lease termination, including deductions and return procedures.

Tenant Fees Act 2019: Restrictions on fees that can be charged to tenants in residential tenancies, including during termination.

Property Codes Compliance: Requirements to comply with relevant property codes and standards during lease termination.

Land Registry Requirements: Registration requirements and procedures for documenting lease termination at the Land Registry.

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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