uuid : ef6e3e45-57eb-44ea-9c26-cce834262343 templates_id: 119566 templates_uuid: "a0864265-8ebe-402c-a55e-f00973c82d87" title: "Sublet Agreement - Create a Licence to Sublet Online" display_name: "Licence to sublet" meta_keywords: "Subletting licence and Sublet licence" description: "

As a landlord of a commercial property, you may decide to grant your tenant a sublease at their request. In which case you will need to use this straightforward licence to sublet to formally give them your consent to sublet. This sublet agreement will make sure everything\'s properly done and contains the usual covenants so that the tenant and landlord are adequately protected.

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Use this licence

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What is a licence to sublet?

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A licence to sublet is an agreement between a landlord and tenant giving the tenant the right to sublet the whole or part of the property to another party ( known as the subtenant).

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Why do you need a licence to sublet?

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You will need a licence to sublet if you have a lease of property and the tenant must obtain the landlord\302\222s consent to the grant of a sublease. It can be used to consent to the grant of a sublease of the whole or any part of the property let to the tenant.\r\n

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What happens if the lease doesn\302\222t allow subleases?

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If the lease absolutely prohibits subletting then the landlord can refuse consent without giving a reason. If it prevents subletting without landlord\302\222s consent the landlord must have a good reason for refusing. Refusal is likely to be justified only if the subtenant:

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How long will the licence last before it expires?

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The landlord can set a time limit within which the sublease must be granted and is entitled to insist that the sublease is completed within a reasonable period after the date of references of the subtenant were provided. If a sublease hasn\302\222t been completed within the agreed time period the tenant will no longer have permission to grant a sublease and the tenant will need to re-apply for permission.

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Who is a party to the licence to sublet?

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A landlord should insist that the subtenant joins in the licence to sublet so that the landlord can claim against the subtenant if there is any breach of its obligations under the sublease.

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What is the landlord\302\222s registration fee?

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A landlord can charge a fee to cover its administration costs for updating records and management systems as to who is in the property. Fees of \302\24325 or \302\24350 are common.

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Further advice

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Ask a lawyer for:

\r\n" created_timestamp: "2018-10-08 04:36:59.0" modified_timestamp: "2018-10-08 04:36:59.0" active: true created_by: 157 modified_by: 157 dcm_id: 224 url_slug: "Licence-to-sublet" meta_description: "Create a sublet agreement to grant your tenant a licence to sublet a commercial property with step-by-step guidance from Rocket Lawyer. Create a sublease for free." time_to_complete: "10 minutes" role1: "Landlord" role2: "Tenant" role3: "Subtenant"

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Sublet Agreement - Create a Licence to Sublet Online

Overview of the Licence to sublet

As a landlord of a commercial property, you may decide to grant your tenant a sublease at their request. In which case you will need to use this straightforward licence to sublet to formally give them your consent to sublet. This sublet agreement will make sure everything's properly done and contains the usual covenants so that the tenant and landlord are adequately protected.

Use this licence

  • when your tenant has approached you for consent to sublet the whole or part of a commercial property to another business
  • when the original lease includes a clause preventing the tenant from granting a sublease without your consent
  • when you have seen the subtenant's financial accounts and they are in a position to pay the rent and other sums due under the sublease

What is a licence to sublet?

A licence to sublet is an agreement between a landlord and tenant giving the tenant the right to sublet the whole or part of the property to another party ( known as the subtenant).

Why do you need a licence to sublet?

You will need a licence to sublet if you have a lease of property and the tenant must obtain the landlord’s consent to the grant of a sublease. It can be used to consent to the grant of a sublease of the whole or any part of the property let to the tenant.

What happens if the lease doesn’t allow subleases?

If the lease absolutely prohibits subletting then the landlord can refuse consent without giving a reason. If it prevents subletting without landlord’s consent the landlord must have a good reason for refusing. Refusal is likely to be justified only if the subtenant:

  • (1) cannot show that it has the financial strength to pay the rent and other sums under the Sublease or to meet the cost of repairs and other obligations, or
  • (2) intends to use the property for a purpose not allowed by the lease (e.g. using a shop as a fast food outlet or restaurant).

How long will the licence last before it expires?

The landlord can set a time limit within which the sublease must be granted and is entitled to insist that the sublease is completed within a reasonable period after the date of references of the subtenant were provided. If a sublease hasn’t been completed within the agreed time period the tenant will no longer have permission to grant a sublease and the tenant will need to re-apply for permission.

Who is a party to the licence to sublet?

A landlord should insist that the subtenant joins in the licence to sublet so that the landlord can claim against the subtenant if there is any breach of its obligations under the sublease.

What is the landlord’s registration fee?

A landlord can charge a fee to cover its administration costs for updating records and management systems as to who is in the property. Fees of £25 or £50 are common.

Further advice

Ask a lawyer for:

  • original leases that do not allow the tenant to sublet
  • a subtenant that you do not agree has the ability to pay the rent under the sublease
  • a subtenant whose use of the property is different to the use allowed under the original lease

Sample Licence to sublet

More than just a Licence to sublet template, our step-by-step interview and guidance makes it easy to create your document.

Easily create online, download, print and sign your free Licence to sublet in minutes.

This document is also sometimes called: Subletting licence and Sublet licence.