In the recent case of Co-operative Bank plc v Hayes Freehold Ltd, a tenant surrendered its lease without checking whether the landlord had mortgaged the freehold.
The surrender was void, with unfortunate consequences.
The dispute concerned commercial premises in west London. Hayes Freehold Ltd was the freeholder and Deutsche Bank was the head tenant. Deutsche had sub-let the premises to a weak covenant whose obligations were guaranteed by Sentrum Holdings Ltd. The freehold was charged to the Co-operative Bank.
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