Subletting Commercial Premises

Subletting a commercial property can be a strategic way for tenants to reduce overheads or make use of surplus space. However, it also comes with legal risks and obligations that are often overlooked. Whether you are a landlord concerned about unauthorised subletting, or a tenant seeking to sublet part or all of your commercial premises, it’s vital to understand your rights, responsibilities, and any restrictions within your lease. At Stretton Solicitors, we advise both tenants and landlords on the legal complexities of commercial subletting, helping to ensure any arrangement is lawful, properly documented, and in your best financial interest.

Before subletting any commercial property, tenants must review the terms of their lease. Most commercial leases include a clause requiring the landlord’s written consent to sublet, and proceeding without this can constitute a breach — potentially leading to forfeiture of the lease. It’s not just about gaining permission: the lease may impose specific conditions on subletting, such as only allowing subleases of the entire property, maintaining the same rental terms, or requiring a deed of covenant with the subtenant. Tenants must also consider their continuing liability under the head lease, as they usually remain responsible for the obligations even after subletting.

Landlords must act reasonably when a tenant seeks permission to sublet — but they are not automatically obliged to consent. Their decision must be based on legitimate business reasons, and delays or outright refusals without valid justification can expose them to legal claims. That said, landlords are entitled to assess the suitability of proposed subtenants, consider the impact on other occupants, and ensure that the sublease will not undermine the value or security of the property. At Stretton Solicitors, we help landlords protect their interests while ensuring they meet legal obligations under the Landlord and Tenant Act 1988.

A poorly drafted sublease can create significant legal issues, both for the original tenant (the sublessor) and the subtenant. The sublease should clearly outline the length of the term, rent payable, repair responsibilities, permitted use, and any break clauses. It should also mirror, or at least be compatible with, the terms of the head lease to avoid conflicts. Our team at Stretton Solicitors can draft and review sublease agreements to ensure full legal compliance and protect your commercial interests throughout the subletting arrangement.

Engaging in unauthorised subletting can lead to serious legal consequences. Landlords may seek to forfeit the lease, initiate possession proceedings, or claim damages. For tenants, it could also result in reputational harm or disputes with subtenants over legal standing. In some cases, unauthorised subletting may even void insurance policies or breach planning permissions. Seeking legal advice early can help tenants avoid these risks by ensuring all necessary consents are obtained and proper documentation is in place. Stretton Solicitors works proactively to prevent disputes and, where needed, to resolve them efficiently.

If you’re considering subletting your commercial premises — or facing issues related to unauthorised subletting — it’s essential to get the right legal guidance. At Stretton Solicitors, we offer clear, practical advice to both landlords and tenants to help you stay compliant, protect your interests, and avoid costly disputes. Contact us today to discuss your subletting arrangements and ensure you’re on solid legal ground from the start.