Alienation

Question 1

What is an assignment of a lease?

Answer 1

When the new tenant has a direct relationship with the landlord (takes over the existing lease on current terms)

Question 2

What is a sub-let?

Answer 2

When the new sub-tenant with the leaseholder and then the leaseholder continues the relationship with the landlord

Question 3

What alienation clauses can leases have ? (3)

Answer 3

Allowing alienation (open)
Subject to some conditions (qualified)
Not allowing either (absolute)

Question 4

Reasons to sub-let rather than assign?

Answer 4

Requirement of the lease
For part of the demise not the whole
Profit rent
If the tenant wants to reoccupy in the future

Question 5

Actions undertaken when dealing with an application for assignment or sub letting?

Answer 5

RTL
Tenant undertaking
Effect on investment
Strength of covenant
Rent deposit

Question 6

Landlord and Tenant Act 1988

Answer 6

To ensure that landlord deal with consents without unreasonably withholding consent

Question 7

Landlord and tenant covenant act 1995

Answer 7

Relates to assignment of leases

Abolished probity of contract for new leases

Provides landlord with more scope for setting conditions regarding the approval of assignee

Introduced authorised guarantee agreement (AGA)

Question 8

RICS Code for leasing premises

Answer 8

Leases should allow tenants to assign the whole premises with consent (not to be unreasonably withheld)

Leases should allow tenants to sublet the whole premises