Can a sublease be carved out of a head lease?

A lawyer will tell you that a sublease is “carved out” of the head lease. That is to say the original head lease remains intact and the sublease operates within it. The sublease can be for the whole of the property in the head lease or any part of it. The document required for a sublease of “the whole” is simpler than one which covers only part.

Do you need a sublease to sub let a building?

Before you consider subletting, you should carefully check your own head lease to make sure you are allowed to sub let. Even if the original lease prevents subletting, a sublease may be negotiated if all parties agree. The most common use of a sublease is for letting an old building to many tenants.

When to start afresh with a sublease or lease?

If the whole of the building is being let, it may be simpler to start afresh with a new lease between the head landlord and the new tenant instead of a sublease. There are obvious administrative advantages in the landlord dealing direct with proposed new occupier.

What happens when you sublease an office space?

Some Pitfalls to Subleasing Office Space. In almost all cases, office subleasing is done at a lesser rate than the original lease. The primary reason for this is because the other two options for the lease holder are to let the property sit vacant, which doesn’t benefit anyone, or to break the lease.

When do you have a sublease on a property?

A sublease occurs when the original owner does not lease the premises to you, but there is another person or entity in between you and the landlord. That is, the property owner rents to someone else, and then that person rents to you. Subleases are common in both commercial and residential properties.

When to break lease and sublease office space?

Most leases last at least three to five years. If your company grows faster than expected or you want a change of scenery, you may find yourself considering breaking your lease. However, subleasing your old space to some subtenants while you move into a better space may be a less messy and more cost-effective solution.

How does a landlord sign a sublease agreement?

Once you have approved a sub-tenant, create a sublease agreement and have all parties invo lved sign it, including all tenants from the original lease and the new sub-tenant.

Can a landlord void a sublease on a business?

Take care to notice any restrictions regarding subleasing as well. In some commercial leases, the landlord may have the capacity to void the contract if he or she does not approve of the sublessor or its particular type of business. If possible, you should review the underlying lease before entering negotiations with the sublessor.