underlease


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Related to underlease: sublease, lessee
See: rent

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.

References in periodicals archive ?
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.
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.
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.
NEWLY refurbished former garage/workshop premises in Oaston Road, Nuneaton, are available to let on an underlease at an initial rental of pounds 25,500 per annum, exclusive.
SPACIOUS and newly refurbished, this showroom in Tower Street, Coventry city centre, is available to let on underlease.
That agreement will provide for the assignment of the lease or grant of the underlease being conditional upon receipt of the landlord's consent.
The property is available by way of assignment of the existing lease or by underlease for the remainder of the term.
Agents Any rents from the occupiers of the properties and any monies paid by undertenants on the surrender of an underlease would be paid to the buyer.
The non-qualifying body grants a lease or underlease back to public body.
AVAILABLE to let by assignment or underlease are well presented offices in Kenilworth town centre.
NOW available due to relocation by way of assignment or underlease is a modern building on a well established and popular industrial estate.
The property is held by the current tenant by virtue of an underlease which expires in June 2009 and the passing rental is pounds 97,500 per annum.