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Sub Lease Contract Template for England and Wales

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Key Requirements PROMPT example:

Sub Lease Contract

"I need a Sub Lease Contract for subletting my office space in central London to a tech startup, with a 2-year term starting March 2025, including break clauses after 12 months and specific provisions for shared meeting room facilities."

Document background
A Sub Lease Contract is essential when an existing tenant wishes to transfer part or all of their leased premises to another party while retaining their obligations under the original lease. This document, governed by English and Welsh law, defines the relationship between the original tenant (acting as sub-landlord) and the new occupant (sub-tenant), while ensuring compliance with the head lease terms. It includes crucial details about rent, duration, permitted use, maintenance obligations, and various other terms that protect all parties' interests. The agreement must comply with both property law requirements and any restrictions in the head lease regarding subletting.
Suggested Sections

1. Parties: Identification of head landlord, tenant (as sub-landlord), and sub-tenant

2. Background: Details of head lease and context for sub-lease

3. Definitions: Key terms used throughout the sub-lease

4. Demise: Description of premises being sub-let

5. Term: Duration of sub-lease

6. Rent and Payment Terms: Rent amount, payment schedule, and review provisions

7. Tenant Covenants: Sub-tenant's obligations

8. Landlord Covenants: Sub-landlord's obligations

Optional Sections

1. Break Clause: Optional provisions for early termination of the lease

2. Service Charge: Provisions for shared services and facilities when sub-let premises are part of larger building

3. Insurance: Specific insurance arrangements and obligations between parties

Suggested Schedules

1. Schedule 1 - Property Plan: Detailed plan of sub-let premises

2. Schedule 2 - Head Lease Terms: Relevant terms from head lease that apply to sub-lease

3. Schedule 3 - Condition Report: State of premises at start of sub-lease

4. Schedule 4 - Service Charge Items: List of services provided and charging methodology

5. Appendix 1 - Head Landlord's Consent: Written consent from head landlord for sub-letting

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈ˰æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

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Landlord and Tenant Act 1954: Primary legislation governing landlord-tenant relationships and security of tenure for business tenants. Essential for understanding the basic rights and obligations in commercial leasing.

Law of Property Act 1925: Foundational legislation establishing fundamental property law principles and requirements for creating legal interests in land.

Landlord and Tenant (Covenants) Act 1995: Legislation dealing with enforcement of covenants in commercial leases and provisions regarding assignment and subletting.

Land Registration Act 2002: Sets out requirements for registration of leasehold interests and determines priority of interests in land.

Landlord and Tenant Act 1985: Covers repairs and maintenance obligations, including provisions about fitness for human habitation.

Landlord and Tenant Act 1988: Specific provisions regarding landlord's consent to assignments and subletting arrangements.

Regulatory Reform (Business Tenancies) (England and Wales) Order 2003: Modifies and updates aspects of the 1954 Act for modern business tenancy arrangements.

Rent Act 1977: Relevant if residential elements are involved in the sub-lease arrangement.

Housing Act 1988: Additional provisions for residential tenancies if the sub-lease includes residential elements.

Building Regulations: Technical requirements for building works and modifications that might be relevant to the leased premises.

Health and Safety Legislation: Various regulations ensuring workplace safety and proper conditions in commercial premises.

Environmental Protection Legislation: Laws concerning environmental standards and obligations for commercial properties.

Energy Efficiency Regulations: Requirements for minimum energy performance standards in leased properties.

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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