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Related to Underlease: sublease, lessee

UNDERLEASE, contracts. An alienation by a tenant of a part of his lease, reserving to himself a reversion; it differs from an assignment, which is a transfer of all the tenant's interest in the lease. 3 Wils. 234; S. C. Bl. Rep. 766. And even a conveyance of the whole estate by the lessee, reserving to himself the rent, with a power of re-entry for non-payment, was held to be, not an assignment, but an underlease. Str. 405. In Ohio it has been decided that the transfer of only a part of the lands, though for the whole term, is an underlease; 2 Ohio, R. 216; in Kentucky, such a transfer, on the contrary, is considered as an assignment. 4 Bibb. R. 538.
     2. In leases there is frequently introduced a covenant on the part of the lessee, that he will not underlet the premises, nor assign the lease. This refers to the voluntary act of the tenant, and the covenant is not broken when the lease is transferred without any act on his part; as, if it be sold by the sheriff on execution, or by assignees in bankruptcy, or by an executor. 8 T. R. 57; 3 M. & S. 353; 1 Ves. 295.
     3. The underlessor has a right to distrain for the rent due to him, which, the assignor of a lease has not. The under-lessee is not liable personally to the original lessor, nor is his property subject to his claim for rent longer than while it is on the leased premises, when it may be distrained upon. The assignee of the lessee stands in a different situation. He is liable to an action by the landlord or his assignee for the rent, upon the ground of privity of estate. 1 Hill. Ab. 125, 6; 4 Kent, Com. 95; 9 Pick. R. 52; 14 Mass. 487; 5 Watts, R. 134. Vide 2 Bl. R. 766; 3 Wils. 234; 4 Campb. 73; Bouv. Inst. Index, tit. Underletting. Vide Estate for years; Lease; Lessee; Notice to quit; Tenant for years.

A Law Dictionary, Adapted to the Constitution and Laws of the United States. By John Bouvier. Published 1856.
References in periodicals archive ?
But it says the underlease with Liverpool CSC will earn it [pounds sterling]4.3m over the first five years "meaning it (the council) will make a profit over the loan repayments to facilitate the purchase".
Cllr Anderson said the extended underlease will make running the theatre more attractive.
But it says the underlease with Liverpool CSC will earn it PS4.3m over the first five years "meaning it (the council) will make a profit over the loan repayments to facilitate the purchase".
"In the light of the information now provided in respect of your three-year plan, which was not provided at the time of your original request in June of last year, the decision to change the underlease dated August 27, 2010 is of public interest, and is one that should be taken openly through a formal decision of the council at a cabinet or cabinet member meeting."
Sub-letting gives the tenant more control in that, if the sub-tenant's actions put the tenant in breach of its own covenants in the main lease, the tenant can terminate the underlease. However, the tenant remains liable to pay the rent to the landlord.
Meanwhile Mars has granted an underlease of the Newforge site to Morrisons.
ENJOYING a prime position and offering 452 sq ft, this first floor suite of offices in Leamington town centre is available to let on a new underlease.
The tenure will be available on a new underlease at pounds 16 per sq ft for a period to be agreed.
NEWLY refurbished, these spacious showroom premises in Coventry city centre are available to let on an underlease.
ARECENT decision by the Court of Appeal has created a real time pressure for intermediate landlords who wish to regain occupation of sublet premises at the end of an underlease.
AVAILABLE to let on an underlease, these former garage/workshop premises in Oaston Road, Nuneaton, provide a gross internal floor area of 6,480 sq ft.