Assignment and sub-letting
Most commercial leases will contain provisions restricting the tenant’s ability to deal with the lease or the property: any transfer of the lease will need the landlord’s consent – which cannot normally be unreasonably withheld, though the landlord might insist on the outgoing tenant guaranteeing performance of the incoming tenant’s obligations; subletting might be completely prohibited, or subject to the landlord’s unrestricted approval.
Repossession
The lease will normally include a right for the landlord to “repossess” (take back) the property if the rent is paid late or if any of the tenant’s other obligations is not fulfilled. If the landlord seeks to use this right, both landlord and tenant should seek immediate professional advice, as the law relating to these provisions is both detailed and complex.
Tenants should note that repossession will not “wipe the slate clean”: they will still be liable to pay any money that is due, including (usually) the cost of any “dilapidations”: repairs needed to bring the property up to the standard required under the lease.
Stamp Duty Land Tax
In addition to the Tenant paying Stamp Duty Land Tax (SDLT) when the lease is granted, SDLT returns may be needed, and further SDLT due, if the lease is varied or extended, if there is a rent review within the first 5 years of the lease term or (sometimes) if you remain in occupation of the property after the lease expires.
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