Q&As

A landlord holds a property under a superior lease and is granting an underlease of the property. The freeholder is providing its consent by way of a licence to sublet. The underlease only has the landlord and tenant as parties to it. All three parties are party to the licence to sublet. The underlease contains a provision requiring the tenant to covenant with the superior landlord to comply with the obligations under the superior lease. Does the superior landlord benefit from this covenant? There is no superior landlord's consent required on an assignment of the lease so is this necessary to ensure compliance following any assignment?

read titleRead full title
Published on LexisPSL on 12/04/2018

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

  • A landlord holds a property under a superior lease and is granting an underlease of the property. The freeholder is providing its consent by way of a licence to sublet. The underlease only has the landlord and tenant as parties to it. All three parties are party to the licence to sublet. The underlease contains a provision requiring the tenant to covenant with the superior landlord to comply with the obligations under the superior lease. Does the superior landlord benefit from this covenant? There is no superior landlord's consent required on an assignment of the lease so is this necessary to ensure compliance following any assignment?

A landlord holds a property under a superior lease and is granting an underlease of the property. The freeholder is providing its consent by way of a licence to sublet. The underlease only has the landlord and tenant as parties to it. All three parties are party to the licence to sublet. The underlease contains a provision requiring the tenant to covenant with the superior landlord to comply with the obligations under the superior lease. Does the superior landlord benefit from this covenant? There is no superior landlord's consent required on an assignment of the lease so is this necessary to ensure compliance following any assignment?

There being neither a direct contractual relationship nor privity of estate (privity of estate exists between a landlord and tenant under the same lease) between a superior landlord and a subtenant, the superior landlord cannot generally enforce the covenants in the sublease and the subtenant is not liable under the covenants contained in the headlease.

Even so, if the headlease and sublease are drafted efficiently and the tenant (sublandlord) is under an obligation to enforce the covenants in the sublease, few problems can arise for the superior landlord. Any breach by a subtenant of the positive obligations in the headlease usually gives rise to a remedy against the sublandlord under the headlease while any breach by a subtenant of a

Related documents:

Popular documents