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CELE SQE1 模拟练习

Examination Timing: 00H00M01S

SpeedyMove Limited is the freehold owner of a building in Oldcastle city centre. The building has two units at street level. SpeedyMove uses one of these as an estate agent's office and has let the other on a ten-year lease to Jane, who uses it as a bistro. The lease to Jane contains a covenant preventing her from assigning the lease without the prior written consent of her landlord. Jane wishes to sell her unit to SnazzyMove Limited, another estate agent and competitor of SpeedyMove. SpeedyMove has withheld its consent to Jane assigning her lease of the unit. Jane is having trouble finding another buyer and SpeedyMove is refusing to accept a sublease and is insisting on an assignment. In order to resolve matters with Jane, SpeedyMove is proposing to purchase her leasehold interest in her unit from her by taking an assignment of the lease. Which of the following statements best describes the position when registration of the transfer is complete?

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The leasehold title will have terminated by surrender and HMLR will close the leasehold title. A surrender is a bilateral agreement between the landlord and tenant that the lease will terminate, and the landlord is returned to the position they were in prior to the grant of the lease (i.e., having an unencumbered title). A surrender should be contrasted with a merger, where the tenant acquires the landlord's interest in the premises. 


Key Point: A lease can be terminated by surrender, which involves an agreement between the landlord and tenant to end the lease and return the property to the landlord's unencumbered title, leading to the closure of the leasehold title at HMLR.

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