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Assignment and Sublease: When can a Landlord say no?

14th April 2015

Assignment and Sublease: When can a Landlord say no?

In a market as tight as the current market in London, assignment and subleases are important for many reasons; it gives tenants comfort that they will have an exit strategy if they grow as in the current market break clauses are far and few between. Additionally the options for sublet and assignment put many spaces back on the market which is in high demand. 

This being said, it is important to make sure you have the right to sublease or assign written into your lease, whether or not you anticipate you’ll need it. In addition, you need to ensure the wording around it is not prohibitive, for example when a landlord agent is drafting a lease they may use a phase like “the right to assign only to a party with a stronger covenant strength”, this can cause problems when you come to sublet or assign as it heavily limited the companies which you are able to sublet or assign to and give the landlord a reason to withhold consent. 

Teresa Beatty, a commercial surveyor at Morgan Pryce says “sublease and assignments have been strong options for clients in this market, as it can provide a solution for a client looking for a 2-3 year lease which is often not achievable direct from a landlord in the current market.” 

This news was brought to you by Morgan Pryce, a specialist tenant acquisition agent with offices in Oxford Circus and the City. Morgan Pryce specialises in search, negotiation and project management and works exclusively for tenants.

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