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Licence to Underlet Heads of Terms


These Heads of Terms for Licence to Underlet Whole of Property are designed to ensure that the landlord, tenant and undertenant agree all significant points of principle before the landlord issues a Licence to Underlet Whole for signature.

If the proposed underletting is of part of the Tenant’s premises, rather than the whole, the Heads of Terms – Part should be used instead. Commercial leases tend to prohibit underletting without the Landlord’s consent. During the term of a lease, the Landlord may well receive a request from the Tenant for consent to grant an underlease. The Landlord’s consent is usually given by way of a formal Licence to Underlet.

Usually, the Landlord will be under a duty “not to unreasonably withhold or delay consent”. The Landlord must therefore deal promptly with the Tenant’s request for consent and must either agree that consent will be given or give reasonable grounds for refusing consent. If consent is to be given, the parties should use the template to agree the Heads of Terms before the Landlord prepares the draft Licence to Underlet Whole.

The template is suitable for any type of commercial property, including shops, restaurants, offices and industrial premises. It can be used in conjunction with the Licence to Underlet Whole template. These Heads of Terms prompt the parties to record administrative information, such as their contact details and details of the lease, and to set out what has been agreed in relation to the underletting, including the underlease term, rent and other key points. They also set out any fees to be paid by the Tenant in relation to the application for consent.

This document is in open format. Either enter the requisite details in the highlighted fields or adjust the wording to suit your purposes.

This template can also be found under Commercial Property Management: Underlettings.

Once you have purchased access to the appropriate document folder click on the “Download Document” button below. You will be asked what you want to do with the file. It is recommended that you save the document to a location of your choice prior to viewing.

Licence to Underlet Heads of Terms is part of Property Documents. Just £35.00 + VAT provides unlimited downloads from Property Documents for 1 year.

This document can also be downloaded from:

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