Can a landlord withhold consent to dealing? - The Law House Family Law Solicitors, London & Peterborough

Can a landlord withhold consent to dealing?


This is a frequently asked question. Leases of business premises often contain a legal agreement by the tenant not to dispose, mortgage or part with possession of their interest in the property without the landlord’s agreement.

The law provides that a landlord is not entitled to refuse consent to such a transaction unreasonably.

As long as:
(a) the tenant makes his application in writing;
(b) the application provides the landlord with sufficient details to reach an informed decision; and
(c) the transaction would not put the tenant in breach of covenant;
the landlord should agree.

The landlord may place conditions on the giving of consent, but if he does, he must be in a position to prove that those conditions are reasonable.

Also, the landlord must serve written notice of his decision on the tenant within a reasonable period of time. What ‘a reasonable period of time’ might be would depend on the facts of the case.

However, a landlord should aim to serve written notice of his decision on the tenant no later than 14 days from the date of receipt of the application – or else risk the tenant bringing a claim in Court.

Important Notice to Landlords:-
Many tenant’s applications are incomplete, insofar as they do not contain full details of the transaction. Prompt delivery of reasonable queries to the tenant may buy the landlord valuable time.

It is worth noting that ‘A landlord is not entitled to refuse consent on a ground which has nothing to do with the landlord and tenant relationship within the context of the particular lease in question’

If you would like more information then get in touch with our dispute resolution team on 020 8899 6620 or email us at sbedford@thelawhouse.com

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