Lease Surrender (old lease) and Re-grant (new lease)
Once the FTT has sent its written determination (month 9) the landlord must give a draft new lease to the leaseholder within 21 days, and within 2 months of the LVT decision, both parties must have entered into a new lease agreement. The landlord will usually instruct a solicitor to prepare a Deed of Variation, or sometimes a Deed of Surrender and Re-Grant but in either case, the new deed will in law work as a surrender of the existing lease and the grant of a new one.
Once the leaseholder is happy with the draft deed and has confirmed this with the landlord’s solicitor, the landlord will prepare an ‘engrossment’ (counterpart) for signing and which the landlord will keep.
If the landlord fails to give the new draft lease or the new final lease within the above time-frame, the leaseholder can apply within the following 2 months to the County court to ask them to order the landlord to meet his obligations to give the new lease.