Underleases

Contents

An underlease  is a derivative interest, depending for its efficacy on the headlease. There are significant legal, practical and drafting issues. Producing an effective underlease is not straightforward. In this session we will review:

• Why underleases are granted and their limitations
• When undertenants are vulnerable
• Whether underletting should be restricted
• Applicable law and drafting issues
• Underleases and the Landlord and Tenant Act 1954

Learning Objectives

On completion of this video you should be better equipped to:

• Draft lease clauses that permit, or restrict, the grant of underleases
• Advise prospective undertenants and their landlords on the relevant issues
• Draft underleases, knowing the legal and practical issues
• Deal with 1954 Act renewals where underleases are involved

Speaker

PAUL CLARK

Paul Clark has been a consultant at Cripps LLP since 2003. He was head of property at DJ Freeman and before that a solicitor at Linklaters & Paines. Paul has experience in major projects, development, shopping centres, landlord and tenant, land registration and SDLT.  A plain language enthusiast, responsible for many standard forms, including the RICS common auction conditions. Former chair of the City of London Solicitors Company Land Law Subcommittee. Member of the Stamp Taxes Practitioners Group. Conveyancing Editor of ‘The Conveyancer and Property Lawyer’. Writes for isurv, the surveyors’ on-line legal service.