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Transfer of head lease from Company to another Company

Land, Registered Land, Planning law etc.

Transfer of head lease from Company to another Company

Postby iwanttoaskaquestion » Fri Sep 23, 2016 10:52 am

Someone I know says he has a 100 year or so lease on his property (flat in a block) .
He has recently received a letter from the company holds the head lease saying
they want to transfer the lease to another Company of which the current lead lease
holder is a shareholder with other new parties/companies .

He is worried that they will take advantage and leave him in a less beneficial
position. Can he block the transfer ?

By the way David, does your firm still exist or could you recommend someone
further up Northwards

Thanks
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Re: Transfer of head lease from Company to another Company

Postby atticus » Fri Sep 23, 2016 11:01 am

Probably not. Your acquaintance should look at his lease. The purchaser of the head lease will be bound by the terms of (a) the head lease (b) underleases.
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Re: Transfer of head lease from Company to another Company

Postby dls » Fri Sep 23, 2016 2:54 pm

I retired from practice several years ago now.

The relations between the two parties are governed by the leases. The rights and obligations should not change. The only objection might come if, for example the new head lessee retains substantial obligations but is a shell company.

There are provisions protecting an original lessee against obligations under a lease after the next but one transfer. He remains liable on the first assignment, but not after the second. Be careful that the assignment is not being used to dump any (typically repair) obligations on a 'man of straw'
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