This is an extract of our Leasehold Management Alienation document, which we sell as part of our Property Law and Practice Notes collection written by the top tier of Cambridge And Oxilp And College Of Law students.
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Work Shop 10 Assignment + Alienation
(Lease) Leasehold Management: Alienation T disposes of residue of the term of the lease and retains no interest in the property or lease. It must be by deed (s.52(1) LPA) and registered at Land Registry. If unregistered, a lease of 7 years or more will trigger compulsory first registration (use Form TR1). Assignment pre-01/01/96 There is an Implied indemnity covenant from assignee to assignor except in unregistered land where the value is not given by assignee (s.77 LPA). Instead, an express indemnity covenant is used (SCPC 6.6.4)
1. Assignment P.349
There are 5 different types of Alienation:
Assignment on or after 01/01/96 Assignor automatically released of future liability, so no need for indemnity. But, if there's an AGA an express indemnity from assignee to assignor must be included because it's not implied (SCPC 6.6.4) T creates new leasehold interest between him and the subtenant of part or the whole of the premises which were let under the original lease (known as the "Head-Lease"). The sublease can be either for part of the original term or for almost the whole of the original term but with a nominal revision. The T retains an interest in the property even if it is just for one day. During the term of the sublease the T is the landlord of the sub-T This includes assignment and sub-letting.
T allows someone else into occupation or so that T is excluded from occupation themselves.
3. Parting with Possession
[NB: s.42 LTA '54 "two bodies corporate shall be taken to be members of a group where one is the subsidiary of the other or both are subsidiaries of a third body"]??
4. Shared Occupation
Several different people/companies occupy the same premises at the same time with the T
Grant a mortgage/other security or other debenture over the freehold or leasehold interest held by T as a security for borrowings
Landlord's Concerns Who is the T Will they meet its rent/other obligations Provide suitable guarantors Who will pay legal costs for checking deed of?Assignee's Concerns Can't negotiate lease beyond agreeing a deed of variation Must take it or leave it What incumbrances and potential problems are there?
Assignor's Concerns Ensure LL's consent is obtained in good time LL will want an AGA, therefore make sure assignee can perform its obligations
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