What is the difference between subletting and underletting

The case highlights the fact that, regardless as to whether the lease allows subletting, if the user clause itself only permits the flat to be used by the tenant and their family, this could prevent the lease being sublet, unless it is argued that this is an unfair term of the lease. It is fairly common for people to need to move out of their permanent home for a short period for example due to work commitments and as such you must ensure that you are permitted under your lease to sublet your home on an assured shorthold tenancy during such a period.

If you require advice on your lease or require assistance in any aspect of conveyancing please contact Sonal Ghelani on sonalghelani boltburdon. You can also contact one of our other solicitors in the Residential Property team here. They are unattractive to landlords because:.

In the case of an 'old' lease ie a lease granted before 1 January , the doctrine of privity of estate applies and therefore the assignee is liable to the landlord for an apportioned part of the rent and performance of those other covenants referable to the part of the premises which has been assigned to him.

The landlord retains a contractual remedy against the original tenant for the whole of the rent and performance of the other covenants. In the case of a 'new' lease a lease granted on or after 1 January , a distinction is drawn between covenants which apply to the whole premises and those which do not.

Upon an assignment of part, the assignor is released from any covenant to the extent that it falls to be complied with in relation to that part of the demised premises, eg a covenant to repair, and the assignee becomes liable to perform the covenant in relation to it sections 5 3 and 3 2 of the Landlord and Tenant Covenants Act LT C A A covenant to pay rent applies to the whole premises and is referred to in LT C A , s 9 6 as a non-attributable covenant.

The starting point is that the assignor and assignee are jointly and severally liable for the rent of the whole premises LT C A , s 13 1. However, LT C A , s 10 includes a mechanism whereby the assignor and assignee can serve a notice on the landlord before or within four weeks of the date of the assignment proposing to make their apportionment binding. The apportionment will bind the landlord unless the landlord serves a counter-notice within four weeks of the date of service of the initial notice, or if a counter notice is served but the court makes a declaration that it is reasonable for the landlord to be bound.

Therefore, in the rare circumstances where a lease permits a tenant to assign part and the tenant chooses to do so, the tenant and its assignee should agree an apportionment of:.

When dealing with a new lease, the procedure under LT C A , s 10 can be invoked. For further information, see Practice Note: Assignment of part of the demised premises. Landlord and Tenant Act , s 1 3 makes it clear that where landlord's consent is required for an assignment or underletting, the landlord must give that consent except where it is reasonable to withhold it.

Consent must be given within a reasonable time after receipt of the tenant's application. If there is no good reason for withholding consent then there is case law to suggest that it should be given within a week after the tenant's request - a far tighter timescale than the 28 days sometimes suggested by inference from Dong Bang Minerva v Davina [] 2 EGLR Although the landlord must make a decision within a reasonable time, it is entitled to request reasonable information in order to make that decision.

It is usually sufficient for the landlord to be informed of the details of the heads of terms. Ultimately, the level of information that the landlord may reasonably request will depend on the terms of the lease. Generally, it is unreasonable for a landlord to refuse consent where it will gain a disproportionate benefit or 'collateral advantage'. Posts Latest Activity. Page of 1. Filtered by:. Previous template Next. I need to get permission from the Freeholder to rent out my apartment.

The Lease states the below, but what does ths mean in simple English please? Or do I need to get the new tenants' signature too, saying that they'll abide by the terms of the Lease? Thanks for some help. Tags: freeholder permission , lease agreements , lessee , renting , subletting , underletting.

Originally posted by Seychelles View Post. Comment Post Cancel. Sub tenants have nothing to do with your lease or permission, but read on.

You put in the AST that the sub-tenants called tenants in an AST agree to observe the headlease your lease with the freeholder copies of relevant pages given to agent to give to sub-tenants Check your lease again, to find "underletting", and if there is no clause to that effect, you don't need permision. BUT, tell the freeholder in any event, as insurance premiums may increase, or freeholder requires copies of the AST for the sub-tenants, usualy within 28 days of residency another thing to look for in your lease.

Hope you find the clauses if you look again. Thank you so much for your reply - I will look again at the lease for underletting. Good to know that the clause I took from the lease relates to selling the apartment it's hard to decipher these legal documents. I will advise the Freeholder in any event and perhaps it'd be worth me sending them a copy of the AST anyway - or could it inadvertently open a can of worms??

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