Licence of alterations for commercial and residential properties

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Category: Leases & Titles

You may come across a legal document called a ‘Licence of Alterations’ or ‘Licence to Alter’ related to what alterations a tenant has (or wants) to carry out at a property.

This is when you have a let property and a landlord and tenant, where the tenant usually wants to make some physical changes and alterations to their area. 

It boils down to the landlord or freeholder giving consent to this and all the nitty-gritty details of how and when this is carried out.

It’s often with commercial properties, where there’s a lease in place and usually big and regular changes needed by a business tenant – for example, a new office layout with a new partition and a breakout area, or a retail shop new fit-out with shelves and...

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Subletting Leases & Under Lettings at Commercial & Residential Properties – the Low Down

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Category: Leases & Titles

You will often hear the phrases of subletting out a property and maybe a subtenant cropping up somewhere. Or perhaps more an underletting that comes to light.

In terms of what such subletting means and a basic definition – it’s allowing another tenant in a property ‘underneath’ the current and primary tenant.

So, the existing lease stays in existence – not like an assignment where it is transferred to another tenant.

You place a new lease below this, hence the phrase ‘sub’ or ‘under’ lease.

The existing tenant is then right in the middle of the landlord and new subtenant. So they act as a direct landlord to the subtenant, but then a tenant back to the leading landlord.

How subletting can help

These are underutilised, particularly...

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Assignment of Leases with Commercial & Residential Properties – Explained

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Category: Leases & Titles

You often hear talk of ‘assigning’ a lease that a tenant holds of a property, with a specific clause in the tenancy regarding the process.

In simple terms, this means transferring the lease to another tenant.

Often a tenant needs to move on and no longer occupy the property. Or cash in and sell the lease interest if it has value, therefore, transfer it to another for payment.

You tend to have a broader alienation clause in the lease, which covers many different ways to part with occupation and responsibility of a lease, including underletting to sub-tenants and shared occupation with a connected party.

One aspect of this you’ll need to look into is how you assign a lease.

Most Types of Property Interests

Whilst most leases with a...

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