Landlord’s consent (Procedural steps for the assignment of a lease)- FS Flashcards
(9 cards)
What is an assignment of a lease?
Assignment is when a tenant transfers the remainder of their lease to another party and retains no further interest in the lease or property.
What is subletting (underletting) in lease transactions?
Subletting occurs when a tenant creates a new leasehold interest beneath their own, becoming the landlord of the sub-tenant while retaining their own lease.
Who are the parties in a lease structure involving subletting?
The head landlord owns the freehold; the main tenant holds the head lease; and the sub-tenant holds the underlease.
When is landlord’s consent typically required in lease transactions?
Most leases contain clauses requiring the landlord’s written consent before assignment or subletting by the tenant
Landlord and Tenant Act 1927 – Section 19?
A landlord’s consent to assign or sublet must not be unreasonably withheld. Whether withholding is reasonable depends on the specific circumstances.
Can a landlord withhold consent if the assignee’s business competes with their own?
Yes. It may be reasonable to withhold consent if the assignee’s business conflicts with the landlord’s or another tenant’s business interests.
How is a sublease different from an assignment in legal terms?
An assignment ends the assignor’s interest completely, while a sublease allows the original tenant to retain a reversionary interest in the lease.
What is the legal consequence of including a consent clause in a lease?
It restricts a tenant’s ability to assign or sublet without landlord approval, which must be given reasonably under section 19 of the 1927 Act.
Can a landlord withhold consent due to business competition from the new tenant?
Yes, if the new tenant’s business directly competes with the landlord’s or an existing tenant’s business, this can justify refusal.
