House mortgage. Urgent legal help plz.?

A house mortgage for 2 yrs. Period lapsed 5 months & both the Parties were silent. After about 5 months of Lease agreement ended, the Tenant verbally agreed to vacate the house in a week's time but demands his full mortgage money back (before handing over house key and possession) so that he can pay to mortgage another house. Is it safe to refund the money without having the key. What is the correct procedure. Thanks for your guidance.