If you are considering subletting your property then you will need to consider some of the following points before doing so:
- Check that your existing lease contains a term allowing subletting. If it is silent on this point, then you may sublet.
- The Sub Lease cannot be granted for a term that exceeds the term of the Head Lease
- It is advised that all the terms of your lease (Head Lease) are imported into the Sub Lease, apart from the rent and term. This should pass on to the sub tenant all the responsibilities of the tenant – though of course it does not relieve the tenant of those liabilities to the landlord as a direct contract remains between the Head Landlord and the Head Tenant.
- There are generally two documents that will be required: the Sub Lease itself and the Licence to Sublet, which is granted by the landlord
- The same requirements regarding registration and SDLT apply to a Sub Lease
- Consider taking a rent deposit in order to attain security in case the sub tenant fails to fulfil the obligations
- You will be responsible for the landlord’s solicitor’s legal costs for dealing with the Licence to Assign.
Be aware that leases are substantial and often complex documents. Some Head Leases set out various requirements that have to be observed in the way in which the Sub Lease is to be drafted. If you have any further queries, please feel free to contact our Commercial Property department and speak to one of our specialist Solicitors.