Real Estate Tip of the Week: Unintentional Direct Dealing - DAC Beachcroft

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Real Estate Tip of the Week: Unintentional Direct Dealing

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.

Authors

Richard Marshall

Richard Marshall

Bristol

+44 (0)117 918 2296

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