Leases generally require tenants to seek landlord’s consent for certain changes – such as a change of tenant, the grant of a sublease and/or alterations to the premises.
These lease restrictions come in various forms and there is lots of statute and case-law relating to how they operate, causing problems for those advising both landlords and tenants.
Common pitfalls when dealing with consent applications include:
- Misinterpreting the nature of the lease alienation covenants
- Failing to serve a valid consent application (when acting for tenants)
- Failing to comply with the relevant statutory duties and/or relying upon unreasonable reasons for refusing consent (when acting for landlords)
Serious risks arise for any landlord who fails to deal with a consent application promptly and/or reasonably. However, tenants also face difficulties if their proposed transaction is not progressed swiftly enough.
Our guidance on this topic looks at the risks and how both landlords and tenants can try to streamline the process so that transactions are not delayed.