Underleases: getting around pre-conditions
By Gemma Sargent-Busquets
It is common for leases to include a covenant preventing the tenant from underletting the whole of the premises without the landlord’s prior consent — such consent not to be unreasonably withheld or delayed.
Section 1 of the Landlord and Tenant Act 1988 (LTA) then applies so the landlord is obliged to give consent unless it is reasonable not to do so. It is also obliged to give its written decision within a reasonable time, stating its reasons for refusing or, if the consent is subject to conditions, specifying these conditions in the decision.
There is a raft of case law on the issue of whether the landlord has acted reasonably in withholding consent or whether the conditions it is seeking to impose are reasonable. However, tenants could find themselves in tricky situations where their lease stipulates pre-conditions to the right to underlet that have to be satisfied before the provisions of the LTA 1988 come into play…
If you are registered and logged in to the site, click on the link below to read the rest of the Bristows briefing. If not, please register or sign in with your details below.
News from Bristows
News from The Lawyer
Briefings from Bristows
The High Court has held that in certain circumstances the European Insolvency Regulations 1346/2000/EC may effectively extend the jurisdictional reach of the English courts.
A recent decision may result in a potentially more expansive basis for establishing jurisdiction over defendants in Europe.