Q&As

A bank is granting a charge to a holding company, but a wholly owned subsidiary will be occupying the freehold premises owned by the holding company until they are transferred to the subsidiary later in the year as part of a larger restructure. Is a lease between the holding and subsidiary company required or desired in these circumstances?

read titleRead full title
Published on LexisPSL on 01/06/2017

The following Property Q&A provides comprehensive and up to date legal information covering:

  • A bank is granting a charge to a holding company, but a wholly owned subsidiary will be occupying the freehold premises owned by the holding company until they are transferred to the subsidiary later in the year as part of a larger restructure. Is a lease between the holding and subsidiary company required or desired in these circumstances?

It would be prudent for the holding company and the subsidiary to enter into some form of short term lease to cover the period before assignment. It may be possible to use a section 43(3) of the Landlord and Tenant Act 1954 (LTA 1954) agreement, but the preferable option would be a lease with a fixed term of a

Related documents:

Popular documents