Leases

Question 1

what is a lease ?

Answer 1

• a contract where a landlord allows a tenant to use property in exchange for rent. Landlord to maintain ownership and enforce and lease terms against the tenant and their successors

Question 2

what is the lessor’s reversionary interest?

Answer 2

landlord retains an interest in the property which will entitle him to enforce the tenant’s covenant

Question 3

what is assignment v sub-letting

Answer 3

assignment - tenant decides to sell the lease

sub-lease - tenant decides to grant further lease of the property to a sub-tenant

Question 4

What are the requirements of the sub-lease

Answer 4

• the terms of the sublease must always match the terms of the superior lease
• Any sub-lease granted by the tenant must be for a term of at least one day shorter than his own lease , otherwise it will constitute an assignment
• requires the consent of the landlord