Assignment and underletting

Assignment and underletting guidance:

Is the landlord’s consent required to the assignment? Check the terms of the lease (including any deeds of variation or supplemental documents). If the lease is...

Practice Note

This Practice Note discusses a tenant’s considerations when negotiating alienation provisions in a rack rent commercial lease that is a new lease for the...

Practice Note

Introduction Most leases contain an absolute prohibition against assignment of part of the demised premises. This is due to the potential complications in relation to: •...

Practice Note

What is an authorised guarantee agreement (AGA)? Under an AGA an outgoing tenant guarantees some or all of the obligations of an incoming tenant under a lease. It was...

Practice Note

A ‘building lease’ is a lease granted in consideration for the tenant erecting a building or carrying out works to existing buildings. When a building lease falls within...

Practice Note

While this Practice Note primarily covers commercial property matters, it also touches on residential considerations. As from completion an incoming landlord is: • (in...

Practice Note

While this Practice Note primarily covers commercial property matters, it also touches on residential considerations. As from completion of the assignment an incoming...

Practice Note

For guidance on the usual forms of covenant against assigning and underletting, and on whether consent has been reasonably withheld, see Practice Note: Landlord's consent...

Practice Note

If your client’s landlord is itself a tenant under a superior lease, you may at some point be required to consider one or more of the following issues during the term of...

Practice Note

Form of covenant The tenant’s ability to assign or underlet will depend on the form of covenant in the lease. It is important to properly analyse the covenant, to decide...

Practice Note

While this Practice Note primarily covers commercial property matters, it also touches on residential considerations. Landlord and Tenant (Covenants) Act 1995 The...

Practice Note

The Landlord and Tenant (Covenants) Act 1995 (LT(C)A 1995) gave tenants, and their guarantors, an automatic release from tenant covenants of the tenancy on assignment of...

Practice Note

'Possession' and 'occupation' are not interchangeable expressions. A covenant in a lease that forbids parting with possession is not broken by a tenant who, in law,...

Practice Note

Side letters are often used: • to make arrangements and grant concessions (eg in relation to the permitted use, the standards of repair or rental concessions), or • to...

Practice Note

An underlease that is granted for as long, or longer, than the original lease operates as an assignment and not as an underlease. Consequently, an underlease must be for...

Practice Note

When property markets suffer a downturn, commercial tenants with properties that are surplus to requirements face significant difficulties in off-loading their...

Practice Note

A virtual assignment is an arrangement under which all the economic benefits and burdens of a lease (including any management responsibilities) are transferred to a third...

Practice Note