Subletting a leased premises

[21TonyK]

In summary I am considering subletting a premises I lease to a tenant who wants to buy the lease from me but also wants to be trading in a matter of days as opposed to the 4-6 weeks which it will take for the lease to be assigned.

They're not buying the business persee but would buy fixtures and fittings on the day they start trading, be responsible for sorting out all their own suppliers, utilities etc and pay a refundable rent deposit and two months rent in advance.

This allows then to get up and running while the lease is being assigned.

I know there are risks, ie. they back out after a month etc but that is a risk I might be prepared to take.

Any suggestions or comments?

[surveyor]

Landlords consent will still be required. Won't be any quicker bearing in mind that he will want to see and approve the sub-lease.

The guy should just do it properly and accepts it takes a few weeks.

[anonymous-user]

Agreed. I would get him to hold fire and do it properly.

Unauthorised sub letting is likely to be a breach of your tenancy agreement, and may also void your insurance.

Why the hurry?

[21TonyK]

Inkyfingers said:

Why the hurry?

Both of us have reasons, I want out for financial and personal reasons and he wants in because he's already waited a long time and is impatient. Theres also another buyer in the frame who he wants to get ahead of.

Be interested to hear if anyone has any magic ways of speeding the process up!

Edited by 21TonyK on Saturday 10th January 16:40

[Chrisgr31]

Quickest way to speed it up is for him to buy the business that is in occupation, well assuming te lease is in the name of the business.

[surveyor]

As Chris says although any number of potential difficulties.

There is no real reason why a sub-lease or even assignment needs to take ages.

You need 2 to 3 solicitors who are able to move quickly (don't expect cheaply), and a Head Landlord prepared to turn things around. Expect Head Landlord / solicitor to ask for an undertaking on fee's. Expect your solicitor to ask for funds to give this.

[21TonyK]

Thanks for the replies guys.

Basically the lease is in my name personally and trading as a sole trader. I (for my mental health!) want out ASAP and the other guy wants in "tomorrow".

Its not vast sums of money involved, tens of thousands not hundreds or millions!

The problem is the landlord is old and very specific about how things happen and it took four weeks to get an appointment for a prospective purchaser just to meet with him.

At the last meeting the LL asked if I was sub-letting any part of the premises and had a form for me to put their details on if I was. Hence the thought that it might be a quick and simple way of getting things underway?

Should I be PM'ing any of you with a view to giving me some idea of costs to make it all happen?

[blueg33]

surveyor said:

Landlords consent will still be required. Won't be any quicker bearing in mind that he will want to see and approve the sub-lease.

The guy should just do it properly and accepts it takes a few weeks.

Depends on alienation clauses tbh.

[surveyor]

blueg33 said:

surveyor said:

Landlords consent will still be required. Won't be any quicker bearing in mind that he will want to see and approve the sub-lease.

The guy should just do it properly and accepts it takes a few weeks.

Depends on alienation clauses tbh.

When have you seen a lease that allows sub-letting without LL consent Blue?

[blueg33]

Just before Christmas. Lease on our new offices I'm Manchester

[loafer123]

Scan a copy of the alienation clauses and paste on here as a pic, and you will get a view pretty quickly.

[21TonyK]

loafer123 said:

Scan a copy of the alienation clauses and paste on here as a pic, and you will get a view pretty quickly.

Do I look for the word "alienation" in the lease or might it be called something else?

(And thanks)

[loafer123]

Subleting and assignment are probably the section headings.

[blueg33]

loafer123 said:

Subleting and assignment are probably the section headings.

And occasionally alienation.

[Chrisgr31]

blueg33 said:

Just before Christmas. Lease on our new offices I'm Manchester

Wonder what the background is to that deal, as sub-letting without Landlord consent is very rare.

[blueg33]

Chrisgr31 said:

blueg33 said:

Just before Christmas. Lease on our new offices I'm Manchester

Wonder what the background is to that deal, as sub-letting without Landlord consent is very rare.

To be fair, I negotiated it away on the pretext I may want to sublet to other Group companies. Landlord's solicitor didn't close it down or limit it. I just struck the clause out.

Moved into the nice new offices over Christmas

[tescorank]

21TonyK said:

Thanks for the replies guys.

Basically the lease is in my name personally and trading as a sole trader. I (for my mental health!) want out ASAP and the other guy wants in "tomorrow".

Its not vast sums of money involved, tens of thousands not hundreds or millions!

The problem is the landlord is old and very specific about how things happen and it took four weeks to get an appointment for a prospective purchaser just to meet with him.

At the last meeting the LL asked if I was sub-letting any part of the premises and had a form for me to put their details on if I was. Hence the thought that it might be a quick and simple way of getting things underway?

Should I be PM'ing any of you with a view to giving me some idea of costs to make it all happen?

Security of tenure is why the Landlord drew up a lease in the first place, its not his fault because your disorganized-why should he rush at things unless you give him a financial incentive as normally most Landlords know they are going to get the rent!