Assign or Sub-Let Licence Solicitors in Milton Keynes

Assign or Sub-Let Licence Solicitors in Milton Keynes

If a business finds that it needs to downsize during the term of a lease on their premises, then it may be possible to assign the lease or sub-let the property to another party. The terms of the lease will need careful checking to make sure that it does not contain restrictions preventing these actions. 

Assigning or sub-letting a commercial lease

Whether you are a tenant or a Landlord of commercial premises, you are likely to need to address the granting of a Landlord’s Licence should the tenant wish to assign or sub-let the Lease. Equally, the tenant may require some alterations to the property which would involve the grant of a Landlords Licence for Alterations or other such variations to a Lease. 

Where a Lease is assigned (sold) by the current tenant, this often involves the Landlord looking for additional security in respect of a new tenant with whom the Landlord might not be fully familiar. This can involve the granting of a form of guarantee, either by the current tenant (an Authorised Guarantee Agreement or AGA), or by a guarantor of the purchaser, or may equally involve the new tenant putting down a deposit under a Rent Deposit Bond as added security for the payment of rent and performance of other obligations under the Lease. 

If a Landlord is to give a Licence to allow a property to be sub-let he will require the proposed Underlease to be carefully considered as it may well contain provisions regarding the incoming sub-tenant with which he, the Superior Landlord, must comply.

If you need help with a landlords' licence, please contact our commercial property solicitors based at our Milton Keynes office. Call 0330 0945 500, email or complete our Online Contact Form and we will get back to you.

Stewart Matthews
Joint Managing Partner & Head of Company Commercial
Kim Sayer
Solicitor - Company Commercial
Katy Williams
Senior Associate - Commercial Property