Licence to underlet: subletting arrangements

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A licence to underlet is a crucial legal document required when a tenant wishes to sublet their leased property to a third party.

This agreement formalises the subletting process, ensuring that the landlord, tenant, and subtenant are all aware of their rights and responsibilities. Without this licence, tenants risk breaching the terms of their original lease, leading to potential legal and financial consequences.

Subletting can be an effective way for tenants to make better use of their leased space, but it must be done within the parameters set by the original lease agreement. A well-drafted licence to underlet ensures that subletting is carried out in a way that benefits both the tenant and landlord, while maintaining the integrity of the lease.

What is a licence to underlet?

A licence to underlet is an agreement in which a landlord gives formal permission for a tenant to sublet their leased property. Unlike a direct lease between a landlord and tenant, this arrangement allows the tenant to act like the main leaseholder (head tenant), while a third party (the subtenant) occupies or uses the property. It provides a legal framework for the subletting relationship, setting out the conditions under which the sublet is permitted, including the obligations regarding rent, maintenance, and adherence to the original lease terms.

This type of licence is particularly important in ensuring that subletting does not violate any conditions of the original lease. It clarifies responsibilities and ensures that any potential risks—such as damage to the property or non-payment of rent—are addressed before subletting begins.

Richard Hughes

Richard Hughes

Partner | Commercial Property, Real Estate, Real Estate Finance

020 3962 5855

How we assist with licences to underlet

Navigating the process of securing a licence to underlet can be complex. Our legal team provides comprehensive advice and guidance to ensure that the process is straightforward and that the licence is tailored to meet the specific needs of all parties involved. We work with tenants to review the terms of their original lease, ensuring that subletting is permissible and that all requirements are met before approaching the landlord.

For landlords, we ensure that the licence to underlet protects the value and condition of their property, addressing any concerns about how the property will be used or managed by a subtenant. Our expertise allows us to draft licences that clearly define all terms, from rent payments to responsibilities for property maintenance, ensuring that both tenant and landlord are protected.

Why our expertise in licences to underlet matters

Our approach to drafting and managing licences to underlet is based on a deep understanding of property law and the specific needs of both landlords and tenants. We recognise the importance of clarity in subletting arrangements, ensuring that all obligations are explicitly stated and that the licence serves as a clear guide for all parties. This helps to minimise the risk of disputes and provides a solid foundation for a smooth subletting relationship.

Whether you are a tenant looking to sublet part of your space or a landlord concerned about how subletting may affect your property, our legal team offers practical, tailored solutions. We ensure that the licence to underlet aligns with the terms of the original lease and protects your long-term interests.

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Who we assist with licences to underlet

We provide specialised legal support to a diverse range of clients. Tenants seeking to maximise their leased space by subletting can rely on our expertise to secure the necessary permissions and ensure the sublease complies with all legal requirements. Landlords, too, benefit from our comprehensive approach, as we work to safeguard their property and manage the risks associated with subletting.

Our experience extends across various sectors, from commercial offices and retail spaces to residential properties. Regardless of the nature of the property or the complexity of the subletting arrangement, we provide the clear, expert guidance needed to ensure the sublease is structured correctly.

Contact us

If you’re considering subletting or need advice on securing a licence to underlet, we are here to help. Our experienced solicitors provide practical, clear guidance to ensure that all legal requirements are met and that the subletting arrangement benefits all parties. Contact us today to discuss your needs and find out how we can assist you with your licence to underlet.

We are here to help

Discover how our expert property lawyers can help you.

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