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Amazing experience
After placing an enquiry, I received a call 20 minutes later, and then 2 hours later, I had a solicitor assigned to me. They were absolutely incredible right from the word go - amazing and very prompt with replies, answering all my questions and keeping the process moving. We finally completed today and I am so unbelievably happy. I wouldn’t hesitate to use Lawhive again in the future if needed.
Lily
First class service
I initially made an online enquiry about a tricky conveyancing matter and received an immediate call back. They understood straight away what was needed and gave me a quote that was very reasonable. It was such a pleasure to find someone who was cheerful, professional and completely reassuring as I’d been getting quite anxious about the sale of my house. The service Lawhive has provided is absolutely first class and I cannot recommend them enough.
Charles
Empathetic, professional and efficient
I am an executor, selling my mother's home. I found the assistance I received from Lawhive first rate - empathetic, professional and efficient.
Mark
Great service from Lawhive
We used Lawhive for our conveyancing needs and our solicitor was very helpful, patient and informative. She helped us with our needs with prompt responses and provided a very efficient service.
Kelvin
Great service when you need clarity and calm
Our solicitor was warm, friendly and provided crystal clear communication. A lot of conveyancers assume customers know everything about the process already, so it was really appreciated to hear each stage included in the price given.
Em
Quick and efficient
We used Lawhive for a transfer of property and conveyancing. Our solicitor was so helpful and thorough with the whole process. He responded quickly and efficiently to any questions or requests that we had and explained some of the more complicated issues regarding the process clearly.
Geri
Fantastic service and experience with Lawhive
I had the pleasure of working with Lawhive doing a transfer of equity on a property. Our solicitor’s service was amazing, she responded quickly to any questions or concerns and kept me updated throughout the process. I can strongly recommend her for any conveyancing work that you may need. Fantastic service all round.
Jane
Amazing experience
After placing an enquiry, I received a call 20 minutes later, and then 2 hours later, I had a solicitor assigned to me. They were absolutely incredible right from the word go - amazing and very prompt with replies, answering all my questions and keeping the process moving. We finally completed today and I am so unbelievably happy. I wouldn’t hesitate to use Lawhive again in the future if needed.
Lily
First class service
I initially made an online enquiry about a tricky conveyancing matter and received an immediate call back. They understood straight away what was needed and gave me a quote that was very reasonable. It was such a pleasure to find someone who was cheerful, professional and completely reassuring as I’d been getting quite anxious about the sale of my house. The service Lawhive has provided is absolutely first class and I cannot recommend them enough.
Charles
Empathetic, professional and efficient
I am an executor, selling my mother's home. I found the assistance I received from Lawhive first rate - empathetic, professional and efficient.
Mark
Great service from Lawhive
We used Lawhive for our conveyancing needs and our solicitor was very helpful, patient and informative. She helped us with our needs with prompt responses and provided a very efficient service.
Kelvin
Great service when you need clarity and calm
Our solicitor was warm, friendly and provided crystal clear communication. A lot of conveyancers assume customers know everything about the process already, so it was really appreciated to hear each stage included in the price given.
Em
Quick and efficient
We used Lawhive for a transfer of property and conveyancing. Our solicitor was so helpful and thorough with the whole process. He responded quickly and efficiently to any questions or requests that we had and explained some of the more complicated issues regarding the process clearly.
Geri
Fantastic service and experience with Lawhive
I had the pleasure of working with Lawhive doing a transfer of equity on a property. Our solicitor’s service was amazing, she responded quickly to any questions or concerns and kept me updated throughout the process. I can strongly recommend her for any conveyancing work that you may need. Fantastic service all round.
Jane
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01 overview
If you want to sublet your premises as a tenant you will first usually need to get permission from your landlord. This allows the landlord to have a say in how the tenancy is run and who the subtenant is.
Underletting is a useful option for the owner of commercial property who wants to dispose of part or all of their premises. When you underlet your premises, you become a landlord to a subtenant or undertenant.
If you are planning to enter a sublet agreement or you are already engaged in one, it is important to seek legal support to make sure you fully understand the obligations placed on you by the agreement and your rights and responsibilities as a landlord or underletter.
Our network of commercial property solicitors is on hand to help you navigate the complex world of underletting.
A solicitor can draft and proofread a license to underlet to make sure that it is legally binding and protects the rights of landlords, tenants and subtenants alike.
Get in touch with our legal assessment team for a free case evaluation and quote today.
A licence to underlet is permission given by a landlord to a tenant that allows a tenant to sublet the entirety or part of a property they’re renting.
The tenant is still responsible for the property and any damage caused by the subtenant. As the original tenant you remain a tenant to your landlord so you must be aware of your responsibilities to them and not ignore them.
The original tenant and the landlord will sign a legal document which allows the tenant to sublet the property unless the landlord has a good reason for refusing.
The landlord can use the licence to underlet to include tenant obligations relating to the proposed underlet. Landlords will typically grant permission to sublet through this formal notice.
A whole underlet licence gives the tenant permission to sublet the entire property that they’re renting.
A part underlet licence gives the tenant permission to sublet part of the property that they are renting from their landlord.
Tenants with leases in smaller properties may only be permitted to underlet part of the building they occupy.
A larger building where a tenant leases several floors in an office building may allow the tenant to underlet part of their building by renting out a floor to a business that requires more space.
When a tenant requests to underlet the property they’re renting it is up to the landlord to decide whether they want to grant a licence to underlet or not.
Whether a landlord decides to grant the licence will depend on the type of property, their relationship with the tenant and the landlord’s circumstances.
A landlord should get legal advice before entering into a licence to underlet to ensure the terms and conditions are worded correctly and will be legally binding.
A landlord may choose to grant a licence in the following circumstances:
A sublease and underlet are essentially the same.
Both underleases, granted by a licence to underlet, and subleases create new leases from an existing lease.
The terms can be used interchangeably, one might be used in one location or region while the other could be used elsewhere.
In some circumstances, this may be possible. However, in the majority of cases, a lease will say that a tenant must get permission from the landlord if they want to sublet a property in part or whole.
If you are unsure, your lease it should outline whether subleasing is possible and under what circumstances it is allowed.
When a tenant is granted a licence to underlet a new lease will be created between the tenant and the undertenant.
As the original tenant named on the lease, you will be responsible for observing the tenant covenants specified in the lease until it comes to an end. You can be held personally liable if the sublessor breaches the lease.
A licence to underlet can be revoked:
When you apply for a licence to underlet, you’ll need to be comfortable that your subtenant will be able to afford the rent on the premises and trust that they’ll comply with the terms of the underlease.
Typically, the rent charged to a subtenant follows the rent paid in the original lease or is calculated against the market rent.
When a subtenant breaches the terms of the lease, by not maintaining the property for example, your lease will be breached and you’ll have to cover the costs of rectifying any issues.
Most commercial leases don’t allow tenants to make alterations to a rented commercial space without the permission of the landlord.
If a landlord consents to any alterations planned by a tenant or subtenant, this will be recorded in either of the following legal documents:
A tenant who makes alterations to their property without consent may be in breach of their lease. A landlord can respond by evicting a tenant. Tenants may also be charged for the landlord’s costs when removing any alterations and or evicting a tenant.
Consent can be applied for after alterations have been made, as long as a landlord okays them.
If the lease between the landlord and the original tenant is cancelled consensually the tenant’s interest in the property passes to the landlord, without neglecting the rights of the undertenant.
When a licence is created the licensee benefits from the non-exclusive use of a property, the licensor therefore, can also occupy the property at the same time, and grant additional licences to other businesses.
This is unlike a lease that grants a tenant exclusive possession, so not even a landlord can enter a property without the tenant’s permission.
A licence to underlet can unintentionally become a lease. This is a risk to both landlords and tenants who enter into this type of agreement on the understanding it will be a short-term arrangement.
A licence to underlet typically last 6-12 months, however, they can continue longer if both parties agree. Usually, the agreement is for a set period.
When a licence to underlet continues for a significant time past 12 months a court may determine that it has become a lease.
The landlord will want to ensure that the rent in the sublease is at least at a similar level to the rent in the main lease, meaning the landlord maintains their income if the original lease is terminated.
Rent review clauses may be included in a licence to underlet which allows for the adjustment of rent at various intervals.
There are a few main types of rent review clauses in licence to underlet agreements:
Tenants can take several steps when looking to protect their interest during a negotiation for a licence to underlet.
Key points to consider include:
It is best practice for three copies of the agreement to be created, one for each interested party. The landlord, tenant and undertenant should all keep a copy of the document.
A single document can also be created if this makes things easier, including separate sections for each party
You should always seek legal advice before entering into a complex legal arrangement like a licence to underlet. They can have serious ramifications if entered into lightly, or without considering their legal implications.
Our network of commercial property solicitors can assist with the drafting of a licence to underlet ensuring your rights are fully represented.
We can also review the language used in the licence to ensure that the relationship between all parties remains a landlord-tenant relationship under the terms of a licence and not a lease.
If you’re a landlord worried about a tenant under a licence receiving security of tenure we can ensure this isn’t the case.
If you’re a tenant with a subtenant we can help you when you’re being pursued for your subtenant’s lack of care maintaining a property.
Get in touch today for a free case evaluation to discuss your requirements with an expert commercial property solicitor.
With straightforward pricing - so you know exactly what to expect at every step.
