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Paper 1 · Lesson 7 — Leases and Tenancies

Assignment sublet and reversion

Assignment vs sublet vs novation, the landlord's reversion, and who remains liable.

2 questionsAnswers & explanations includedFree — no sign-up

Question 1

A tenant of an office finds he no longer needs all the space and asks the landlord's consent to sublet part of it to a respectable, financially sound business on the same terms. The landlord, who simply dislikes the idea of anyone else in the building, refuses outright, giving no real reason.

Which statement is correct?

  1. A. The tenant may sublet freely without asking, consent to a sound subtenant being automatic.
  2. B. The landlord may refuse for any reason or none, subletting always being in his gift.
  3. C. The landlord may not unreasonably withhold consent, and a bare dislike is not a good reason.
  4. D. The landlord may refuse, a tenant having no right to sublet any part of the premises at all.
Show the answer and full explanation

Answer: C

The rule. Where a tenant needs the landlord's consent to sublet, that consent must not be unreasonably withheld. A refusal must rest on a proper reason connected to the letting; mere personal dislike is not enough.

Why C is correct. The proposed subtenant is respectable and sound and the terms unchanged; the landlord's bare dislike of anyone else in the building is not a good reason, and consent may not be unreasonably withheld.

The other options.

  • B lets him refuse for any reason. Consent must not be unreasonably withheld.
  • A lets the tenant sublet without asking. Consent is still required; it simply may not be unreasonably refused.
  • D denies any right to sublet. The tenant may sublet with consent, which here may not be refused.

Exam note. Consent to sublet may not be unreasonably withheld. A reason tied to the letting is needed; dislike is not one.

Where a tenant needs the landlord's consent to sublet, that consent must not be unreasonably withheld →

Question 2

Ms Kwek wants to hand the unit to Mr Devar and be fully released for the rest of the term. What best achieves this?

  1. A. Nothing, a retail tenant never being able to leave before the end of the term.
  2. B. A subletting from Ms Kwek to Mr Devar, leaving Ms Kwek still liable to Greenfield.
  3. C. An assignment of the lease by Ms Kwek, which keeps her liable to Greenfield as before.
  4. D. A novation, signed by Greenfield, Ms Kwek and Mr Devar, discharging Ms Kwek.
Show the answer and full explanation

Answer: D

The rule. To substitute a new tenant and fully release the outgoing one, a novation is used, signed by landlord, outgoing tenant and incoming tenant. An assignment or a sublet leaves the outgoing tenant liable.

Why D is correct. A novation signed by Greenfield, Ms Kwek and Mr Devar would discharge Ms Kwek and put Mr Devar in her place — the full release she wants.

The other options.

  • B uses a sublet, leaving Ms Kwek liable.
  • C uses an assignment, which also keeps her liable.
  • A says she can never leave early. Novation lets her.

Exam note. Full release of a tenant needs a novation signed by all three. Assignment and subletting keep her liable.

An assignment or a sublet leaves the outgoing tenant liable →

Practise it under exam conditions

Single questions test whether you know a rule. The paper tests whether you can find it in a scenario, at speed, with three plausible alternatives in the way. Start with the free 20-question half-paper.

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