COMMERCIAL LANDLORD AND TENNANT

LICENCE TO SUBLET

Leases normally restrict the tenant’s ability to sublet the property in full or in part. Before the tenant can sublet the premises the consent of the landlord is usually required. This is typically so the landlord can retain an element of control over the property.

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What is the procedure for obtaining a licence to sublet?

If you want to sublet all or part of the property you are going to need to speak with the landlord and obtain their consent. Once consent has been provided it is common practice for landlords to document their consent in the form of a formal licence. It is important to seek advice prior to entering a licence to sublet so you fully understand your obligations contained within the document. The document is usually prepared by the landlord’s solicitor and the tenant is expected to meet the landlord’s legal costs.

A licence for sublet will typically contain obligations in respect of the following:

A requirement that the under tenant observes the covenants in the head lease.
A requirement that the under tenant provides a cross guarantee for the tenant’s obligations.

What are the consequences of not obtaining a licence to sublet?

If the lease stipulates that landlord’s consent is required but the tenant grants a underlease without consent, this will be a breach of the terms of the lease. The landlord may then take enforcement action against the tenant including terminating the lease.

Fixed fee for Licences to sublet.

At Birch Law we offer a fixed fee service for dealing with licences to sublet. For landlords we can prepare and make any necessary amendments to a licence to sublet for the sum of £750 plus VAT. For tenants we can review and make any necessary amendments to a licence to sublet for the sum of £500 plus VAT.

How Birch Law can help?

Birch Law have extensive experience acting on behalf of landlords, tenants and undertenants in relation to licences to sublet. Our team can guide you through the process from start to finish at a competitive fixed fee. For a free no obligation chat please feel free to contact us on 0161 669 4621 or by email at sbirchall@birchlaw.co.uk.

Whichever funding route you choose, you can rest assure that our experienced solicitors will always do their utmost to keep costs as low as possible. If you would like to discuss any of our services with us, feel free to contact us using the form below or give us a call at 0161 669 4621 for a free no obligation chat.

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