Lease prohibiting alienation?

by Readers Question

9 months ago

Lease prohibiting alienation?

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Lease prohibiting alienation?

Hi everyone.

I’m looking at a property in auction and the Property Register contains the comment that the lease prohibits or restricts alienation.

Does this mean that it can not be let to tenants or simply that the lessor cannot abrogate his obligations by assigning them to a third party?

Many Thanks in advance.



Neil Patterson

9 months ago

"Alienation is the legal term for assigning, sub-letting, charging or otherwise dealing with a tenant's interest in a lease of property."

Actually it could potentially be more complicated than it sounds when you look it up so I would get it checked out by a lawyer.

Ian Narbeth

9 months ago

Hi Paul
This is a common restriction. You need to check (better still get a lawyer to check) the terms of the lease. Certain types of alienation such as assignment of part will be banned. Depending on the property, subletting of part may be prohibited. There may be other restrictions and it may be necessary to obtain the landlord's consent to a dealing with the lease and normally this cannot be unreasonably withheld. However, don't assume anything. Get proper advice.

There is close to a one in infinity chance the restriction means "that the lessor cannot abrogate his obligations by assigning them to a third party". The lessor can usually transfer his interest without involving the lessee. He may remain liable in contract but that has nothing to do with the restriction you refer to.
It goes without saying: Be extra careful buying at auction. Auction is where the problem properties go.

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