Handy Tips for Tenants: Subletting and Assignments

TIP 1

Try to make sure you are NOT required to sublet at teh same or higher rent than you pay.  You should not be limited other than by reference to the market rent at the time of subletting.

TIP 2

Ask your Landlord to reflect the flexibility you require in the sharing provisions of the lease.  This probably means you must not create a tenancy for your supplier. 

TIP 3

Make sure your Landlord, including any superior Landlords, is required to give consent within a defined (and short) period of time and that he is not allowed to refuse without good reason.

TIP 4

Ask the Landlord to limit his requirement for an Authorised Guarantee Agreement (AGA) to those cases where your proposed buyer (assignee) is financially weaker than you are at the date of assignment.  Ask the Landlord to include provisions that will allow you to cancel the Guarantee if defined conditions are met and/or after an agreed period.

TIP 5

Try to agree alternative conditions to avoid you having to enter into an Authorised Guarantee Agreement for example by having the new tenant pay a rent deposit.

TIP 5

Try to make sure the only precondition for assignment is obtaining the Landlord's consent in writing and that the Landlord may not unreasonably withhold or delay giving his consent.

Taken from The Code for Leasing Business Premises in England and Wales 2007 www.leasingbusinesspremises.co.uk

For further information on subletting and assignments, please contact Jeffrey Freed jlf@freedandco.com