A deed of surrender is a legal way for both a landlord and tenant to agree to end a tenancy early. Unlike an eviction, a deed of surrender lets both parties decide together when and how the tenancy will end. It outlines clear terms for giving up possession of the property, so neither side has ongoing obligations like rent or repairs once it’s signed. In this guide, we’ll break down when a deed of surrender makes sense, why it’s useful, and what both tenants and landlords should consider.
What is the purpose of a deed of surrender?
The main goal of a deed of surrender is to create a simple, legally binding agreement that protects both sides when a tenancy ends. It confirms that the landlord and tenant mutually agree to terminate the lease and ensures that no extra responsibilities - such as paying rent or fixing damages -are expected after the surrender date.
This approach is especially helpful when a tenancy has a fixed term. Normally, both parties would need to stick to the original contract until the end or use formal legal routes to end it early. A deed of surrender saves time, money, and hassle by avoiding complex processes and potential disputes.
When should a tenant use a deed of surrender?
A tenant might use a deed of surrender in situations where:
Early termination of a fixed-term tenancy: If the tenant needs to move out before the tenancy’s end date - for reasons such as relocating for work, financial difficulties, or purchasing a home - they can request a deed of surrender. This allows them to avoid penalties or ongoing rent obligations if the landlord agrees.
Mutual agreement with the landlord: A tenant may negotiate with the landlord to surrender the tenancy if both parties agree that continuing the lease no longer benefits them.
Avoiding formal eviction procedures: If a tenant is struggling to pay rent or has breached the tenancy agreement, they might prefer a deed of surrender rather than face eviction or possession order proceedings. This can help protect their credit record and rental history.
When should a landlord use a deed of surrender?
Landlords may also benefit from using a deed of surrender under specific circumstances:
Taking possession of the property early: A landlord might wish to regain possession for personal use, renovations, or selling the property. If the tenant agrees to surrender, the landlord avoids lengthy legal eviction processes.
Minimising financial loss: If the tenant can't pay rent but agrees to vacate, a deed of surrender can help avoid further arrears or legal expenses associated with eviction.
Ending a problematic tenancy:
In cases where a tenant has breached their obligations, a mutual agreement to surrender avoids disputes and potentially hostile situations.
What happens after the deed of surrender is signed?
Once both parties sign the deed of surrender, the tenancy is formally ended, and the tenant must vacate the property by the agreed date. Any rent owed up to that date is typically settled, and the tenant returns the keys.
For the landlord, signing the deed allows them to take back possession without the need for legal eviction. It is important to note that both parties should carefully document the condition of the property and agree on any deposit deductions before finalising the surrender to avoid later disputes.
Do you need a solicitor to draft one?
While it is not a legal requirement to hire a landlord solicitor, using a professional to draft a deed of surrender ensures the document is correctly prepared and legally binding. A poorly written deed may fail to cover important details, potentially leading to disputes or invalid termination. Solicitors can tailor the deed to reflect specific terms, such as any rent concessions or agreements about outstanding repairs.
FAQs
How much does a deed of surrender cost?
The cost of drafting a deed of surrender varies depending on whether you hire a solicitor or use a pre-existing template. Using a solicitor typically costs between £150 and £500, depending on the complexity of the tenancy agreement and any additional terms. Templates can cost significantly less but may not provide the same legal security.
Who can witness a deed of surrender?
A deed of surrender must be signed by both the tenant and the landlord, and their signatures need to be witnessed. The witness must be an independent adult who is not a party to the agreement, such as a neighbour or friend. Solicitors or notaries are often preferred for additional legal assurance.
Is a deed of surrender the same as eviction?
No. A deed of surrender is a voluntary agreement between landlord and tenant to end the tenancy. Eviction, on the other hand, is a legal process initiated by the landlord when the tenant refuses to leave or breaches the terms of the tenancy. Unlike eviction, a deed of surrender avoids court proceedings and is typically more amicable.
Final thoughts
A deed of surrender can be a useful tool for ending a tenancy by mutual agreement, offering a straightforward alternative to formal notice or eviction. By clearly outlining the terms for ending the lease, it protects both landlords and tenants from future disputes. While it’s possible to draft a deed independently, using a solicitor ensures the document meets all legal requirements, making the process smooth and legally secure.
References
Surrender of a tenancy from Shelter