A conditional surrender agreement was conditional on the tenant waiving freedom of possession, but not on the condition that the tenant pay an unseraled sum for maturity reserves. Pavilion (“landlord” and defendant) owns a retail property located on a retail property in Margate. The building was leased to Dreams plc under a 2006 lease agreement, which ended in 2031. Tenants and landlords usually enter into a lease with the best of intentions, but sometimes after it is signed, something happens and both parties think it would be better to terminate the lease prematurely. A tenant transfer agreement provides the platform to make the property prematurely and protects both parties from liability for the balance of the tenancy period. It is not always possible or desirable for an agreement for a lease to be unconditional. It is often necessary to enter into a lease agreement that subordinates the final granting of the lease to the performance of certain conditions. This may result in disputes in which it is in the interest of one of the parties to dispose of its obligation to take over the lease. The main driver for parties wishing to cancel conditional agreements is a change in market conditions; a rising trend in rents between exchange and completion may encourage a landlord to take steps to get a better deal; Conversely, a bear market will make a tenant uncomfortable if he or she has committed to conditions that prove too generous for the lessor. In these circumstances, if the drafting of the contract is the subject of particular attention, either by litigants or by the Court of Justice. Leases may be subject to a number of cases, but the following are those that can cause the greatest potential for difficulties: the agreement should indicate the date and time that the property will officially return to the lessor and in what condition.
It should also indicate all the financial conditions required by one or both parties at the time of the handover. Both parties sign the agreement, hand over keys and the lease term ends. The lease required the tenant to pay the rent in advance every quarter. Additional rents related to insurance, service charges, interest and VAT were also booked.