Q&As

How should we document a headlease for a tenant who has been in occupation for many years and has granted an underlease?

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Published on LexisPSL on 11/01/2016

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

  • How should we document a headlease for a tenant who has been in occupation for many years and has granted an underlease?

How should we document a headlease for a tenant who has been in occupation for many years and has granted an underlease?

We assume that no formal lease was entered into with the tenant.

The tenant may have acquired some sort of tenancy by virtue of being in occupation. This may be a tenancy at will or periodic tenancy (see Practice Notes: Periodic tenancies and Using licences and tenancies at will). It is also possible that an oral lease could have been created, if the agreed term did not exceed three years (Law of Property Act 1925, ss 52 and 54). Therefore, it may not be the case that the tenant had ‘no legal interest’, and in which case the underlease was not necessarily unlawful if no specific restrictions on subletting were been negotiated in respect of the tenant’s interest.

Note that, in the

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