A lease is surrendered when the tenant’s interest is transferred back to the landlord and both parties accept that it will be extinguished. This can be done formally, by deed, but this is not always necessary.

If the lease is valuable to the tenant (and so the Liquidator, Administrator or Trustee in Bankruptcy representing them) then this is not a good option. It is better to look for an assignment of the lease or to negotiate payment from the landlord for ending it before the end of the term.

[See ‘Administrator’, ‘Liquidator’, ‘Trustee in Bankruptcy’ and ‘Assignment’.]

Survivorship

Joint Tenancy creates a ‘Right of Survivorship‘. This right provides that if any one of the Joint Tenants die, the remainder of the property is transferred to the survivor(s).

[See ‘Joint Tenancy’.]

T

Taking Control of Goods

This is also known as ‘walking possession’ and is a legal term used by the enforcement department of HMRC to recover goods as a way of debt repayment.

An HMRC officer will first issue a Notice of Enforcement to recover debt (after receiving a Writ of Control).

If, after seven days (excluding Sundays and Bank Holidays), the debtor has not paid, the HMRC officer can visit the premises and take control of the goods.

Once the officer arrives, they will record all valuable assets and ‘take control’ of them. The debtor will be given a Controlled Goods Agreement (CGA) to sign. If the debtor refuses to cooperate, goods can be removed immediately. The officer then has to give seven days notice of the sale.

It is usually best to agree to the CGA so goods are not removed from the premises.

If the goods stay on the premises, they must not be sold or traded – this is a criminal offence.