Q&As

A commercial lease is registered in the name of four partners of a business. A reversionary lease of the same premises has been granted to four different individuals—the current partners of the business. Should an assignment of the current lease have been entered into when the partners of the business changed?

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Published on LexisPSL on 11/10/2018

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

  • A commercial lease is registered in the name of four partners of a business. A reversionary lease of the same premises has been granted to four different individuals—the current partners of the business. Should an assignment of the current lease have been entered into when the partners of the business changed?

Where land is held by a company, there is no difficulty when directors or shareholders change. The land is held by the company which remains separate from those persons. They have no interest in the land and when a director resigns or a new one is appointed, there is no need to consider how the land is held.

Where however a partnership wishes to occupy land, thought needs to be given as to how any interest in it will be held. The partnership only exists through its partners. There is no separate legal entity. Instead, it will be the individual partners who own the interest in the land. The maximum number of people to whom the legal interest in land may be conveyed is four (section 34(2) of the Law of Property Act 1925 (LPA 1925)). If an attempt is made to convey it to more than four people, only the first four named will be the grantees (LPA 1925, s 34(2)).

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