The right of tenants to 'virtually assign' leases has been strengthened by a recent case, but the change should also be welcomed by landlords, says Julian Sidoli del Ceno

Alienation clauses are standard features of both commercial and residential leases. They are used ultimately to protect a landlord’s interest in the property by giving him a fair degree of control over the tenant on the transfer of the tenant’s interest to another party whether by the usual method of formal assignment or by sub-leasing or some other means.

In practice, the tenant covenants not to assign or sublet the property which is subject to the lease without the consent of the landlord, with this consent not to be withheld unreasonably. This situation allows the landlord to examine any prospective tenant for their suitability and financial viability and also to enter into an authorised guarantee agreement (AGA) under section ...

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