Licenses and alienation Flashcards
What is typically required for consent in a commercial lease?
Consent is typically required to be given by deed, except in limited circumstances.
What is the deed called that gives consent for assignment/alienation?
Licence for assignment/alienation
Why is the requirement for a deed considered safer for a landlord?
It prevents inadvertent consent from being granted.
What does a licence usually contain regarding consent?
A licence will usually contain a time limit on consent.
When is a licence usually completed in practice?
A licence is usually completed just before completion.
This timing ensures that all parties are aligned before the transaction finalizes.
What are the obligations in a licence to alienate lease?
There are few obligations in a licence to alienate lease. This will generally include a direct covenant between the assignee or undertenant and the landlord.
What might be included in a licence to assign a new lease?
AGAs might be included in a licence.
What notice is required from the tenant regarding assignment or underletting?
The tenant is required to give the landlord notice within a month that assignment or underletting has taken place.
Usually a fee from the landlord’s solicitors receipting this notice.
What are the other forms of alienation a tenant can engage in?
- Charge - floating charge over a business, mortgage
- Occupation
What is share occupation in the context of leasing?
Share occupation usually allows sharing with group companies in a commercial lease, as the landlord can regard the tenant and group companies as one entity.
What provisions does the Code for Leasing Business Premises include for tenants?
It states that the lease should allow tenants to:
- Assign
- Underlet
- Share with group companies
- Charge the lease to a bank
without consent
