1. Landlords Consents Alienation Assignment and sub-letting
No restrictions
Absolute covenant against assignment
Qualified covenant
Express proviso

2. Assignment Absolute covenant is rare as value is affected
Qualified covenant ie “ without landlords consent”. Implied not to be unreasonably withheld s19 LTA 1927.
Not a strict list of rules, Bickel v Duke of Westminster 1977.
But see s19(1A) grounds below
Character of assignee and effect on rent or investment value are key.
Assignment

3. Examples of unreasonableness
Lose a good tenant of other property
Would result in a change of use restricted elsewhere.
Consider the request in a reasonable time and consent cannot be unreasonably withheld LTA
Threat of damages for delay can influence decision to give consent.
Examples of unreasonableness

4. Reasonableness In most cases a few weeks
What are the facts of the case at the time of the request eg three months has been held to be too long, but 28 days has been held to be reasonable.
Landlords careful approach may be reasonable if there are genuine concerns eg around robustness of proposed assignee, effect on other tenants or building
Reasonableness

5. Damages Design Progression v Thurloe Properties 2004
No written decision in breach of 1988 Act
Exemplary Damages £25,000
Loss of premium agreed with assignee
Loss of business goodwill and turnover
Refusal in good time followed by request for further information can lead to damages Go West v Spigarolo 2003
Damages

6. Landlord and Tenant Act 1927 S19(1A)
In a new lease, agreed circumstances that would constitute reasonable refusal( and conditions for grant of consent).
Examples
An outstanding breach of tenants covenant
Assignee of weaker covenant strength
Assignee financially unlikely to be able to fulfil covenants in the lease
Conditions that may be imposed could be
Covenant from assignee to observe tenants covenants in the lease.
Covenant to provide a rent deposit at assignment.
Assigning tenant to provide an AGA
See Authorised Guarantee Agreement under L and T Covenants Act 1995
Landlord and Tenant Act 1927 S19(1A)

7. Illegal Sub letting Forfeiture, s146 LPA 1925 Injunction
Claim damages.
Do not accept rent
Brinkmanship by Landlord and or sub tenant. Crestfort v Tesco 2005
Illegal Sub letting

8. User No implied covenant around consent
But.... Cannot take a premium or fine
Planning law runs parallel, but can help interpret user
Landlord should not seek an opportunistic advantage. Anglia Building Society v Sheffield City Council 1982
Hours can be restricted, delivery times etc to protect the working of other tenants.
The building may need to be protected eg from heavy machinery.
User

9. User - Effect on value May be an opportunity to add value.
May be an opportunity to make useful suggestions to tenant and advisor
May be a catalyst to improved L and T relationship (see commercial lease code).
User - Effect on value

10. 1927 Act again applies if there is a qualified covenant ie Landlords consent cannot be unreasonably withheld.
Landlord can have compensation for diminution in value.
Tenant can be compensated at end of lease
May be in their interest to not require removal at end of lease eg where re – letting value is increased
Improvements

11. Improvements Interpreted from tenants perspective
Up to tenant to prove unreasonableness if consent withheld
Refer to county court (etc?) if Landlord is asking too much compensation
Alterations can be improvements eg where adjacent buildings are better used, yet the value of the demised premises may not increase.
Improvements