Allied Dunbar Assurance Plc v Homebase Ltd: ChD 26 Apr 2001

The defendant took a lease of substantial property, subject to a covenant not to sublet without the landlord’s consent, such consent not to be withheld unreasonably, and which covenant was made subject to additional conditions. The defendants ceased to operate and sought to sublet. They eventually found a possible sub-tenant, and sought the landlord’s licence. The court held that each of the additional provisos must be complied with before the reasonableness of the proposed sub-letting was to be assessed, and it was for the tenant to demonstrate that compliance. Promises made by the tenant to the proposed sub-tenant did not invalidate the fulfillment of the conditions by the sub-tenant, particularly in the light of the difficulties in finding a new tenant. However the arrangements did not achieve the requirement to align the terms of the rent reviews in the sub-tenancy with those in the head tenancy.


Gazette 26-Apr-2001


Landlord and Tenant Act 1988


England and Wales

Landlord and Tenant

Updated: 17 May 2022; Ref: scu.77756