Alienation Provisions

This can otherwise be termed as grounds upon which the landlord may agree to the tenant parting with possession of the property

Many leases provide some or all of the following restrictions:

  • The tenant may assign, underlet or charge the whole of the property, with the landlord's consent, and that consent should not to be unreasonably withheld or delayed.
  • The tenant may not assign, underlet or charge part only of the property to avoid the landlord dealing with multiple tenants.
  • The tenant may share occupation with group companies i.e. companies to which it is related, for example, the parent or holding company.
  • Agreements to assign, underlet etc. are not prohibited, but allowing an assignee/undertenant into occupation before completion of the assignment/underlease would normally be prohibited under sweep-up prohibition on parting with possession.

The Code of Practice on Commercial Leases recommends that (unless the individual circumstances justify greater control), the only restriction on assignment of the whole should be the landlord's consent which is not to be unreasonably withheld. The Code does not make any recommendations as to restrictions on underletting, charging, sharing occupation or otherwise parting with possession.

If you would like to discuss alienation provisions or commercial leases in general with us please call us on 01562 514870, email us on This e-mail address is being protected from spambots. You need JavaScript enabled to view it , or contact us using the contacts page of our website.

 
DWT Legal LTD
Company Registration No: 6966430 | Registered office is: 37 Worcester Street, Kidderminster, Worcestershire, DY10 1EW
Service provided by Solicitors of England and Wales | Authorised and regulated by the Solicitors Regulation Authority No. 516498
http://rules.sra.org.uk
XML Sitemap | Designed by Piranha Marketing