Licenses to Assign and Underlet

Question 1

What are key features of a license to assign / underlet?

Answer 1

1) Executed as a deed
2) Limited in time
3) Limited to specific transaction
4) Tenant pays landlord’s costs

Question 2

What must the existing or new tenant do after completing an assignment or underletting?

Answer 2

Notify the landlord within one month

Question 3

Why is a notice required for the landlord after completion?

Answer 3

To update records and issue rent demands to the correct tenant

Question 4

What are two different forms of alienation to assignment and underletting?

Answer 4

1) Charging the lease
2) Sharing occupation

Question 5

What is charging a lease?

Answer 5

Tenant uses lease as security

Question 6

Will landlord consent be required for charging a lease?

Answer 6

Yes

Question 7

What is sharing occupation?

Answer 7

Tenants wish to share space without creating an underlease

Question 8

When is sharing occupation seen?

Answer 8

Group companies sharing the same premises

Question 9

What does 2020 Code for Leasing Business Premises provide as best practice for alienation clauses?

Answer 9

1) Reasonable consent
2) Conditions for consent should be clearly stated in lease
3) Share occupation should be allowed without consent
4) Tenants should be able to charge their lease without landlord consent