The Early Termination of Lease Agreement is essential when parties wish to end their lease arrangement prematurely by mutual consent. This document, governed by English and Welsh law, is commonly used when circumstances change for either the landlord or tenant, making early termination beneficial for both parties. It addresses key aspects such as termination dates, financial settlements, property condition, and the release of ongoing obligations. The agreement ensures compliance with relevant legislation including the Landlord and Tenant Act 1985 and the Law of Property Act 1925, while providing legal certainty and protection for all parties involved.
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1. Parties: Details of the landlord and tenant
2. Background: Reference to original lease and reason for early termination
3. Definitions: Key terms used in the agreement
4. Termination Date: Specific date when the lease will terminate
5. Release of Obligations: Terms of mutual release from lease obligations
6. Settlement of Accounts: Financial settlement including rent, deposits, and other charges
7. Vacant Possession: Requirement to deliver property with vacant possession
1. Break Fee: Details of any early termination fee, used when parties agree to a termination payment
2. Dilapidations: Agreement on property condition and repairs, used when there are outstanding repair obligations
3. Reference to New Tenant: Terms regarding replacement tenant, used when termination is conditional on finding a replacement
1. Schedule of Condition: Current condition of the property
2. Schedule of Dilapidations: List of required repairs or maintenance
3. Original Lease: Copy of the original lease agreement
4. Inventory: List of fixtures and fittings
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