Jurisdiction(s):
United Kingdom

Related legal acts

Key definition

Alienation definition

What does Alienation mean? In landlord and tenant practice, alienation describes any disposal or passing of a tenant’s estate or occupational rights—typically assignment (Scotland: assignation) of the lease, subletting/underletting, granting a charge over the leasehold, or parting with or sharing possession or occupation (for example, licences to share, concessions or desk‑sharing). Most leases restrict alienation and require the landlord’s prior written consent. In England and Wales, legislation (notably the Landlord and Tenant Act 1927 and the Landlord and Tenant Act 1988) qualifies covenants against alienation (consent not to be unreasonably withheld) and imposes procedural duties on landlords; the Landlord and Tenant...

Leasehold issues on asset purchases: assignments, new leases, landlord consent, pre-emption, alternatives, early occupation and post-completion (England and Wales)

Published by a LexisNexis Property expert

Practice notes

On an asset acquisition that includes leasehold premises, the property can either be transferred in full to the purchaser or, alternatively, a fresh lease can be granted. Whenever a leasehold interest is involved—whether already in place or newly created—key points arise, outlined below.

Existing lease: points to consider

Assignment provisions

Where the deal includes leasehold property, the lease’s Alienation provisions must be scrutinised to ensure that every condition relating to assignment is strictly complied with. The remaining terms of the lease should likewise be reviewed to check that no clauses are impacted by an assignment, for example a break right that is personal to the seller, or a surrender‑back clause. If any lease contains an absolute prohibition on assignment, the buyer may require a Deed of variation (or comparable certainty) from the landlord, or, alternatively, may ask for the property to be taken out of the sale/purchase.

Pre-emption Rights

In some cases, the landlord benefits from a pre‑emption right, meaning the property must first be offered back to the landlord. Where that right is exercised, the agreement should make clear whether the remainder of the sale/purchase will continue to completion, or whether the balance of the transaction will not proceed...

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Web page updated on 21/05/2026

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