Module 3 · Chapter 8
Assignment and Underletting
A tenant may need to pass its lease on before the lease ends. The lease says how: what needs the landlord's consent, what needs a guarantee, and what needs only a letter.
In this chapter
- The three ways a tenant can pass its lease on
- When the landlord may refuse consent, and how fast it must answer
- Why a tenant that assigns still guarantees the next tenant
8.1Alienation in one paragraph
A lease is an asset, and a tenant may want to pass it on before it ends. Passing a lease on is called alienation. Three forms of it matter here:
- Assignment: the tenant transfers the whole lease to a new tenant, the assignee.
- Underletting: the tenant grants a shorter lease out of its own, and stays the tenant.
- Sharing: another company works in the premises without a lease of its own.
Key point
The lease does not forbid alienation. It controls it. Clause 5.6 says which forms are allowed, what each one needs, and what is never allowed.
Also in this chapter
- Why the tenant wants a way out and the landlord wants control
- What clause 5.6 allows
- When the landlord may refuse consent
- Assignment, release and the guarantee
- When the assignee stops paying
- Underletting and sharing
- Your job
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