Accepting rental payments from third parties—landlord’s considerations

Copyright © 2025 LexisNexis
Published by a LexisNexis Property Disputes expert
Practice notes

Accepting rental payments from third parties—landlord’s considerations

Copyright © 2025 LexisNexis

Published by a LexisNexis Property Disputes expert

Practice notes
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This Practice Note explains the various potential implications for a landlord to consider before accepting rental payments from third parties, including arguments that rent paid by a third party has given rise to a surrender by operation of law and re-grant to the third party, or that the landlord is estopped from denying that an assignment has taken place by virtue of the third party rental payment.

The issue may arise in particular where:

  1. •

    a company related to the tenant company (such as a parent company or subsidiary) tenders the rent

  2. •

    the tenant is proposing to, or is in the process of, assigning their lease

  3. •

    the tenant company is insolvent (for example in administration) and a third party is interested in occupying the premises

Surrender by operation of law

One potential risk to take into account is whether or not accepting rent from a third party may give rise to a surrender by operation of law and grant of a new implied lease to the third party which has tendered the

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Jurisdiction(s):
United Kingdom
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Key definition:
Third parties definition
What does Third parties mean?

If a service allows the placement of cookies by third parties, they should be named and information should be given about the purposes for which those cookies will be used As explained in Clear and comprehensive information, third parties given access to any cookies must also be appropriately identified.

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