Q&As

As part of a business sale, a company is assigning properties. One appears to have been occupied by way of periodic tenancy for 14 years, the company paying a monthly rent. The landlord produced a draft lease about ten years ago but this did not progress. How does the company assign the periodic tenancy to its buyer and on what basis will landlord’s consent be given or refused? What terms are likely to be implied in the periodic tenancy in respect of assignment?

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Published on LexisPSL on 18/05/2018

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

  • As part of a business sale, a company is assigning properties. One appears to have been occupied by way of periodic tenancy for 14 years, the company paying a monthly rent. The landlord produced a draft lease about ten years ago but this did not progress. How does the company assign the periodic tenancy to its buyer and on what basis will landlord’s consent be given or refused? What terms are likely to be implied in the periodic tenancy in respect of assignment?

As part of a business sale, a company is assigning properties. One appears to have been occupied by way of periodic tenancy for 14 years, the company paying a monthly rent. The landlord produced a draft lease about ten years ago but this did not progress. How does the company assign the periodic tenancy to its buyer and on what basis will landlord’s consent be given or refused? What terms are likely to be implied in the periodic tenancy in respect of assignment?

A lease for a term exceeding three years must be in writing and be granted by deed for it to take effect as a legal interest. A failure to comply with this requirement means that the lease will only take effect as an equitable interest. The requirement does not apply however where the interest granted is a periodic tenancy because such an interest is not a three-year term. See Practice Note: Contracts for the sale of land—formation, signature and variation.

Where a tenancy is in writing, there will seldom be dispute as to the terms to which it is subject. Questions might arise as to the interpretation of

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