Lease variations—impact on underlease
Lease variations—impact on underlease

The following Property Disputes practice note provides comprehensive and up to date legal information covering:

  • Lease variations—impact on underlease
  • Variation of terms—generally
  • Variation of terms—inclusion of break option in headlease

Lease variations—impact on underlease

Variation of terms—generally

As there is no privity of contract or privity of estate between a head landlord and an undertenant, an undertenant will not be affected by variations to the rent payable or other covenants in a headlease, unless they entered into a direct covenant with the landlord to observe and perform the covenants in the headlease, for example in a licence to underlet. Whether or not they are bound to comply with covenants which are varied is likely to be a matter of construction of the wording of the licence to underlet. For example, the licence may contain wide wording where by the

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