Payment Predicated on Process
If a landlord wants to ensure it can recover a debt owed by its tenant from either a former tenant or a guarantor it must serve a s.17 notice…
Published 16 May 2016
If as superior landlord you are called upon to give consent to the grant or an assignment of a sub-lease which is inside the protection of Landlord and Tenant Act 1954 ("the Act"), then it pays to consider carefully if you would want that party as a direct tenant.
This is because under s.65(2) of the Act, if your tenant's lease comes to an end without being renewed, then the sub-tenant automatically becomes your direct tenant.
Good reason to provide in your leases that any permitted sub-leases must be outside of the protection of the Act, or to make sure that you vet any incoming sub-tenant carefully.
By Bhavini Patel
By Kerri Tyler