Underletting Procedure Flashcards
What is usually needed before underletting?
Landlord’s consent
What are head lease considerations?
Underlease must comply with tenant’s obligations under head lease
What should the length of underlease be?
Shorter than remaining term of tenant’s lease
Can tenant grant underlease on terms less onerous than their own lease?
Typically, no
What are the main stages of an underletting procedure?
1) Pre-exchange
2) Exchange
3) Pre-completion
4) Completion
5) Post-completion
What happens at pre-exchange?
1) Consent application
2) Drafting the underlease
3) Agreement for underlease
4) Investigation of title, searches and enquiries
What does landlord’s solicitor request from tenant’s solicitor before beginning work?
Costs undertaking
Who prepares the draft underlease and draft agreement?
The tenant’s solicitor
Who applies for landlord’s consent?
The tenant’s solicitor
What is an agreement for underlease?
Landlord’s consent is delayed, but tenant and undertenant wish to commit
What is the main role of undertenant’s solicitor?
Investigate the title
What is the way a lease title is deduced determined by?
If lease is over 7 years or under 7 years
How is title deduced if lease is over 7 years in underletting?
Tenant provides official copy of their leasehold title
How is title deduced if lease is under 7 years in underletting?
Tenant provides freehold title and copy of the lease
Is a deposit payable for exchange for underlease?
No
What is typically exchanged?
The agreement for underlease (if used)
What does agreement for underlease include?
Fixed completion or conditions that must be met before completion – draft of underlease annexed
What pre-completion searches does undertenant make?
- OS1 – if underletting whole
- OS2 – if underletting part
- OS3 – if underlease not registrable
What does undertenant’s solicitor do post-completion?
- Submit SDLT or LTT
- Register underlease if required
Who drafts license to underlet?
Landlord’s solicitor
Who drafts underlease?
The tenant’s solicitor
What is needed if someone wants to underlease somewhere but only if they can get alcohol license?
Agreement for underlease with condition
