Property Notepad - May 2009

1. Dealing with applications for Landlord’s Consent

Landlords, and their surveyors and agents, should proceed with great caution when faced with any tenant application for permission or consent. This applies irrespective of the subject matter of the application (eg. assignment, subletting, alterations, change of use etc).

The problem is that even a seemingly innocuous reply might in law amount to the grant (or unreasonable refusal) of consent. For example, the High Court recently ruled that correspondence qualified by the words “in principle” was nonetheless sufficient to grant consent to an assignment, and thereby render a conditional contract unconditional (Alchemy Estates v Astor (2008)). Once consent is deemed granted, a landlord will often be unable to insist on completion of collateral arrangements, such as the provision of a rent deposit or even signature of a formal licence document.

The safest course of action is for landlords to reply that they are immediately referring the application to their solicitors for advice. This will create the opportunity for all factors to be considered, and for a suitable reply to be given within the framework and timetable created by the terms of the lease, and by law.

Property Notepad - May 2009

1. Dealing with applications for Landlord’s Consent

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