Steps to Assign lease Flashcards
(17 cards)
Purpose of license to assign?
Get landlord to consent to assignor handing over lease to assignee
SC for landlord’s consent deadlines?
SC: either party can rescind contract if consent not given 3 working days before completion
SCPC for landlord’s consent deadline?
SCPC: completion is postponed to 5 working day after notified consent is given + cannot rescind until 6 months pass OG completion date
Who prepares license to assign?
landlord’s solicitor
What is in a license to assign?
- landlord’s consent + conditions
- if lease after 1996: AGA
- before 1996: direct covenant
- assignor undertakes to pay landlords legal costs
New lease?
After 1996
old lease?
before 1996
What is a deed of assignment + who drafts?
Transfers legal title drafted by assignee’s solicitor
Protect landlord under new lease by…
AGA to promise new tenant will comply with covenants until next lease assignment
Protect landlord under old lease by…
T2 enter into direct covenant with landlord - liable for rest of lease
Liability under old lease
T1 liable until end of their lease term (privity of contract)
T2 only liable if DC given
Liability under new lease
T1 - automatically released from liabilty unless AGA is asked by landlord
T2: all tenants passed onto them = fully liable
privity of estate
current landlord and current tenant for new or old lease
When is it justified for landlord to refuse lease assignment
- concerned tenants inability to pay rent
- tenant’s use of property
- tenants business will compete with landlords
Condition for landlord givign consent to assign lease?
Cannot be unreasonably witheld or delayed –> tenant gets damages
Consent to underlet by landlord
Give consent in reasonable time
L
Liabilties in underletting lease
Tenant is still liable for remainder of lease term
Undertenant liable to landlord via direct covenant
