Challenges of Subletting and Assignment: Key Considerations for Retailers

What can tenants do to mitigate the financial burdens of surplus properties including various strategies like subletting, underletting, and assignment in the UK retail property market? Join That Retail Property Guy' as host Gary Marshall discusses strategies for tenants to dispose of surplus leases. Gary explains the importance of reading lease terms, securing landlord consent, and the implications of the 1995 Landlord and Tenant Covenants Act. He delves into the risks and responsibilities involved in underletting, subletting, and assignment, and provides practical advice on mitigating financial losses, dealing with non-paying subtenants, and managing potential lease-end complications.

00:00 Introduction and Episode Overview

00:11 Understanding Lease Contracts and Tenant Obligations

01:27 Options for Retailers with Surplus Properties

01:34 Exploring Break Clauses and Alienation Rights

02:10 Underletting and Subletting Explained

03:32 Navigating the 1954 Landlord and Tenant Act

06:12 Landlord's Approval and Reasonable Consent

08:55 Assignment of Leases: Risks and Rewards

10:46 The 1995 Landlord and Tenant Covenant Act

14:01 Managing Financial Support and Lease Expiry

16:15 Conclusion and Final Thoughts.

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