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Thomas
Thomas, Lawyer
Category: UK Law
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Experience:  BA (Hons), PgDip, Practising Solicitor
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Hi. I am just about to sign the commercial lease. Prior drawing

Resolved Question:

Hi. I am just about to sign the commercial lease. Prior drawing the lease the owner agreed to Tenant to have ability to assign the lease or sublet if necessary. However the clauses in the lease clearly state that tenant shall not sub let or assign the lease without landlord's consent. Please can you let me know if this clause is normal practise or I should have another clause confirming subletting.
I would really appreciate your help.
Many thanks
ausra
Submitted: 4 years ago.
Category: UK Law
Expert:  Thomas replied 4 years ago.
Hi Ausra,


Thanks for your question.
Yes, completely standard I’m afraid. The landlord understandably requires a degree of security as to who you sublet or assign the lease to, otherwise you could assign/sublet it to a person of no financial standing or dreadful credit history and the landlord would not be able to do any thing about it.
After the words “..landlord’s consent” you should ask for “(such consent not to be unreasonably withheld or delayed” so that it prevents the landlord from unilaterally refusing a reasonable sub-tenant or assignee.
In most cases, the clause would also state the conditions on which the landlord would grant his consent to the assignee/sub-tenant, such as:-
1. Trade reference, bank reference, accountant
2. If a company, then a guarantor required
3. No rent being owed by you
4. Same rent deposit required of the assignee
5. Not outstanding breaches of the lease by you
6. A requirement by you to enter an authorised guarantee agreement (in the case of an assignment) whereby you agree to guarantee the rent that the assignee should pay and in the event of default by the tenant agree to take the lease back
Very standard I’m afraid
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Kind regards,


Tom
Customer: replied 4 years ago.

but i would always be the one responsible for rent, i do not want to assign the lease to someone else. I just need permission to sublet but the lease is on my name and additional tenants just have an agreement with me. is this possible?many thnks

Expert:  Thomas replied 4 years ago.
Hi,

If you assign the lease to an assignee but are not required to sign an Authorised Guarantee agreement then you would be completely released from liability (ie. no longer responsible for any rent).

If you assign the lease and are required to executed an Authorised Guarantee Agreement then you will have to pay the rent if the assignee defaults. If the assignee does not default and then himself assigns the lease then you are completely released from liability.

It is possible for you to sublet the lease provided you get the landlord's consent. If he give you consent then you can sublet, but if the sub-tenant does not pay rent then the landlord can always come after you for it. At this point you would obviously terminate your sublease to the subtenant to take back possession of the property to either occupy yourself or to assign/sublet to another person.

Trust this clarifies, please click accept.

Kind regards,

Tom
Customer: replied 4 years ago.
Tom,

I just had a second draft of the lease and it includes planing permission from which I can see that the permitted use is incorrect for me. The owner and the agent lead me to believe that the property was suitable for the letting agent but now it looks like he just has use D1, which not suitable. Please let me know who is responsible to let me know the permitted use. Prior bookIng the viewing I have asked if this office is suitable otherwise I wouldn't have booked the viewing. Where do I stand? Please I would really appreciate your advice on this.
Expert:  Thomas replied 4 years ago.
Hi,

Thanks for your reply.

This is technically a separate question. I will answer but please click accept.
It's not their responsibility to let you know about the use of the lease. It's for you to check.

You need to contact the council to check with their planning department to ensure that the use is correct for your purposes. If it's not then you should not sign the lease until it is.

Usually you would carry out a local search to confirm the listing of the use with the council. You should do this. Your local authority will tell you how.

You may have a claim against the agents/landlord if they misrepresent the use but you should not enter the lease unless you establish the correct use.

Trust this clarifies, please click accept.

Kind regards,

Tom
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