Grant of a lease, assignment and subletting 1) Grant of a lease

2) Assignment of a lease

What is it?

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Brand new lease Free to negotiate Will normally follow the heads of terms

Documents /
formalities

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The Lease

Examples

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First sale of a newly build flat by a residential developer who owns the freehold

What is it?

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There is no new lease It is the transfer of the old lease to a new tenant

Documents /
formalities

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The Lease (which is already in existence) Licence to assign signed by: o Landlord o Tenant (assignor) o Assignee Deed of assignment signed by o Tenant o Assignee

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Examples

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3) Under-letting of existing lease

Sale of a residential flat where the freehold belongs to a developer under the same terms A lease with 3 years remaining where another lease is granted over the entire premises to another occupier for the remainder of the term of the lease

What is it?

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Creation of a new lease based upon the terms of the old lease Not completely free to negotiate the terms

Documents /
formalities

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Licence to underlet signed by o Landlord o Tenant o Under-tenant (giving landlord a covenant to comply with the head lease excluding the covenant to pay rent) The Under-Lease

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Examples

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A tenant allows a friend to live in the flat for 6 months A lease with 3 years remaining where another lease is granted over the entire premises to another occupier for the remainder of the term of the lease minus 1 day

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