S13.5 Renunciation of Lease

The writ by which a lessee (tenant) surrenders his interest in a Lease in favour of the lessor (landlord) is known as a Renunciation, the minute of which is normally:

REN. by AB (design) – IN FAVOUR OF CD (design), - of Lease (recorded 1 Feb. 1949) – of …, referred to in said Lease. Dated …

Absorption of interests (consolidation) 

Sections 2(1)(a)(iv), 2(4)(a) and (b) and 8(2)(b) of the Land Registration (Scotland) Act 1979 provide for the absorption of one interest by another. In this context, absorption means the merging of two fees, such as the termination of a lease otherwise than by expiry of its natural term. The methods of giving effect to the absorption of one interest by another vary, according to whether either or both of the interests are registered or unregistered. During the transitional period, while the Register of Sasines and the Land Register co-exist in an operational area, the lower fee (i.e. the tenant’s interest) is absorbed into the higher fee (i.e the landlord’s interest), in whichever Register is appropriate for the higher fee. Absorption is one of the few situations in which there is a departure from the basic concept of section 2, namely, that only a transfer for valuable consideration will induce first registration. If the higher fee is registered in the Land Register and the lower fee is not, absorption requires registration of the lower fee in the Land Register, even if there is no transfer for valuable consideration. If the higher fee is recorded in the Sasine Register, the deed effecting the merger is recorded in that Register, whether or not there is a transfer for valuable consideration. Even if the lower fee is already registered, the deed effecting the merger is recorded in the Sasine Register and the title sheet for the lower fee is cancelled. This is the only situation in which an interest is removed from the Land Register and returned to the Sasine Register. As well as recording the deed effecting the merger in the Sasine Register, the applicant should submit an application for registration, in terms of section 2(4), to permit the Keeper to give effect to the merger in the Land Register. This is achieved by closure of the title sheet for the lower fee. 

The Minute will essentially still look the same:

ABN 02942 (No.14) 01 Sep.2009
REN. by W H SMITH RETAIL HOLDINGS LIMITED, (formerly W H SMITH PLC) - IN FAVOUR OF AUBREY INVESTMENTS LIMITED, - of Lease (recorded 12 Aug. 1981) - of Unit 1 51/57 MARISCHAL STREET, PETERHEAD, referred to in said Lease. Dated 5 and 18 Aug. 2009.
- see ABN23088.

If you look at the Title Number, however, you will see that the Title has been closed as a result of the Renunciation.

If it is the Landlord's interest that has gone to the Land Register then the Sasine Search Sheet will be closed as in the case of WLN CSS 17189 and Title No. WLN 10456:

00498 (No.10) 23 Jun.2010
REN. by GLAMIS INVESTMENTS LIMITED - IN FAVOUR OF LORD ADVOCATE, - of Lease (recorded 24 Dec. 1981) - of office forming part of ground floor and all of first and second floors of building known as STUART HOUSE, 181/201 HIGH STREET, LINLITHGOW, referred to in said Lease. Dated 25 Feb. and 2 Mar. 2010.
- £400,000 - PRES./EX.
- see Title No. WLN 10456.
Note - Agent aware that deed does not narrate links with original Landlord and Tenant.

In the case where the Lease has caused the First Registration and is therefore referred to by Title Number the following style of Minute can be used:

WLN 00677 (No.5) 05 Aug. 2009
EXTRACT REN. by HYDRAULIC HAMMER HIRE LIMITED, - IN FAVOUR OF SCOTTISH ENTERPRISE EDINBURGH AND LOTHIAN (formerly LOTHIAN AND EDINBURGH ENTERPRISE LIMITED), - of Lease (registered in Land Register under Title Number WLN39346) - of Plot 11 EASTER INCH, BATHGATE, referred to in said Lease. Dated 22 May 2009 and Extracted 28 May 2009.
- No Consideration.
- see WLN39346.

Again, the Title has been closed in the Land Register.