Two styles of Sublease have now been published on the PSG website, available on a new Subleases page, and accompanied by Guidance Notes.
The Subleases are specifically designed to be used for a sub-letting of the whole of the let premises (as opposed to a sub-letting of part only of the premises let by the headlease).
Style 1 is drafted to be compatible with the PSG suite of leases.
To streamline use of this Sublease, the relevant terminology and clauses of the headlease are incorporated by reference, in much the same approach used in the PSG Bipartite MCL Compatible Licence for Works, rendering this a relatively succinct document.
Style 2 is available for use with other styles of lease. Some attention will need to be given to ensuring that defined expressions and reference to clauses in the head lease are aligned.
Despite the expectation of a straightforward delegation of performance of the Tenant’s obligations under the headlease obligations, users should consider whether other case-specific factors have to be catered for in the Subleases, for example:
- different Term End/Break/Rent Payment Dates;
- a new rent-free period being granted to the Subtenant;
- a different rent review cycle and a different basis for review;
- rent payment dates being out of sync; and
- the possibility of the Subtenant’s repairs liability being qualified (for example by a schedule of condition) or the user being more tightly defined.
However, minimal change will be required to the template where the Sublease is for the unexpired Lease term, with all Tenant’s obligations being passed on to the Subtenant. It is possible a Sublease like this might be used in circumstances where assignation is not feasible.
The PSG considers that a Sublease of Part of the Premises would be a useful companion document, and this is included in our list of future projects.
As ever, we welcome comments on this new document. Our contact details can be found on the PSG website homepage.