Q&As

In respect of a licence to assign, what is the effect of limiting the costs provisions (ie in respect of the preparation of a licence) to the level of an undertaking for costs given only, rather than the usual provision for the tenant to pay the reasonable costs and disbursements of the landlord's solicitors in connection with the licence?

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Published on LexisPSL on 18/01/2016

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

  • In respect of a licence to assign, what is the effect of limiting the costs provisions (ie in respect of the preparation of a licence) to the level of an undertaking for costs given only, rather than the usual provision for the tenant to pay the reasonable costs and disbursements of the landlord's solicitors in connection with the licence?

In respect of a licence to assign, what is the effect of limiting the costs provisions (ie in respect of the preparation of a licence) to the level of an undertaking for costs given only, rather than the usual provision for the tenant to pay the reasonable costs and disbursements of the landlord's solicitors in connection with the licence?

Subject to the intervention of statute, the words of the lease will govern the nature and extent of the parties’ obligations.

The usual form of words in a lease is to limit the tenant’s obligation to meeting the reasonable costs and disbursements of the landlord’s solicitors. In the ordinary course of events, this is only fair. The landlord is entitled to take a view as to whether he will grant permission to an assignment. He is entitled to take legal advice so as to ensure that any decision he reaches is made in accordance with the law such that it has a good chance of being upheld in the event of a challenge. He will also likely incur legal costs in drawing up the relevant licence. Given that those

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