Q&As

Can a sub-lease require rent paid directly to head landlord?

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Published by a LexisNexis Property expert

Published on: 06 August 2019

Is it possible to have a clause in the sub-lease which requires a sub-tenant to pay rent direct to head landlord? What are the adverse implications, if any?

In this Q&A:

•
the passing rent under the underlease is the same as the passing rent under the headlease (and will remain so following rent reviews under either/both), with the intention being that payment by the undertenant will fully satisfy the tenant’s obligation under the headlease, and
•
the superior landlord is not a party to the underlease, but its consent is required to the grant of, and the form of, the underlease (which includes the relevant provision)

We have been unable to locate any content within our resources to confirm the position. However, as a matter of contract, it appears possible for an underlease to provide

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Jurisdiction(s):

United Kingdom

Key definition:

Sub-lease definition

What does Sub-lease mean?

A lease granted by a tenant or lessee for a shorter term than they themselves hold. Also called an underlease.

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