Commercial Sub-Leases - Drafting & Practicalities Explored
Sub-leases raise distinctive issues for all three parties involved: landlord, head-tenant and sub-tenant.
The landlord will be alive to the possibility of ending up in a direct relationship with the sub-tenant, and may also have concerns about the level of rental agreed, and what this means for rent reviews, lease renewals, and valuations. The landlord will also be concerned to control the terms of the sub-letting, and any alterations and change of use, so far as it can. While it is usual to take a direct covenant from the sub-tenant to comply with head-lease terms, that is not always easy to enforce in practice.
In a multi-let property where all occupiers hold sub-leases, does enforcement of other occupiers’ obligations need to be via the head-tenant, or can it be direct?
How can the sub-tenant obtain, not only the immediate landlord’s consent to any actions for which it is required, but also that of the superior landlord? And at lease termination, how does the Landlord and Tenant Act 1954 operate in relation to sub-tenants?
Add in regulatory issues such as MEES and disability adjustment works, and the practicalities of administering service charges, and it is clear that sub-leases present additional challenges in drafting and management.
This new course surveys the problems and considers practical solutions.
What You Will Learn
This course will cover the following:
- Disability adjustment works
- Inter-enforceability of other sub-tenant’s obligations, also head-tenant’s obligations
- Anticipating and drafting for insolvency of the head-tenant, or forfeiture of the head-lease
- Consequences of the head-tenant operating a break option
- How sub-tenants operate 1954 Act procedures
- Obtaining superior landlord’s consents
- Service charge issues
9:30am - 12:45pm
Please let us know if you wish to be notified when new dates are added for this programme