#4874 - Grant Of A Lease, Assignment And Subletting - Property Law and Practice

Grant of a lease, assignment and subletting 1) Grant of a lease 2) Assignment of a lease What is it? * * * Brand new lease Free to negotiate Will normally follow the heads of terms Documents / formalities * The Lease Examples * First sale of a newly build flat by a residential developer who owns the freehold What is it? * * There is no new lease It is the transfer of the old lease to a new tenant Documents / formalities * * The Lease (which is already in existence) Licence to assign signed by: o Landlord o Tenant (assignor) o Assignee Deed of assignment signed by o Tenant o Assignee * Examples * * 3) Under-letting of existing lease Sale of a residential flat where the freehold belongs to a developer under the same terms A lease with 3 years remaining where another lease is granted over the entire premises to another occupier for the remainder of the term of the lease What is it? * * Creation of a new lease based upon the terms of the old lease Not completely free to negotiate the terms Documents / formalities * Licence to underlet signed by o Landlord o Tenant o Under-tenant (giving landlord a covenant to comply with the head lease excluding the covenant to pay rent) The Under-Lease * Examples * * A tenant allows a friend to live in the flat for 6 months A lease with 3 years remaining where another lease is granted over the entire premises to another occupier for the remainder of the term of the lease minus 1 day