Basic principles

The Landlord and Tenant Act 1988 was introduced to force landlords to respond quickly to applications by tenants for consent to assign, underlet, charge or part with possession of their premises.

Where a landlord is under a duty in its lease not to refuse consent unreasonably, it will be liable to indemnify the tenant for any damages it suffers where consent is unreasonably delayed or refused.

Market conditions

In a falling market, a tenant is more likely to suffer serious loss if the landlord, in breach of the Act, is unreasonably slow in consenting to an assignment or underletting. The tenant may lose its chance to assign or underlet.

The courts' attitude

In recent cases the courts have not been sympathetic to landlords who do not deal with tenants applications for consent quickly.

A landlord has to make a decision within a reasonable time. Whilst the amount of time will depend upon the facts of each case, such time is usually measured in weeks and in some cases, days.

Considering applications

It is vital that landlords obtain all the information they need before making any decision to give or refuse consent. A landlord cannot subsequently try to justify a refusal by relying on reasons not given in writing to the tenant at the time of refusal.

It is this state of affairs at the date of the landlord's decision which is relevant. Any information which comes to the attention of the landlord after a decision has been given to the tenant is irrelevant.

A refusal of consent will be unreasonable if a landlord does not inform the tenant of the decision in a reasonable time, and has not raised any reasonable objection or has any query outstanding.

Landlords should remember:

• Have a procedure in place so that applications for consent and requests for further information from tenants are dealt with promptly.
  
  
• If you decide to refuse consent or impose conditions your reasons are given to the tenant in writing quickly.
  
  
• If the tenant has said there is a particular urgency in dealing with the application, take this into account and act expeditiously.
  
  
• If you do not consider that an application for consent has been served on you by the tenant in accordance with the terms of the lease this is made clear to the tenant as soon as possible.
  
  
• If there are pre-conditions set out in the lease, make sure these are complied with before the application for consent is determined.

Update: Landlords' consents - Update May 2005

Who can help?

If you would like further advice about dealing with tenants' applications for consent and whether any reason relied on when considering a refusal is likely to be considered unreasonable, please contact Philip Horn on 01865 240202 or e-mail him on philip.horn@plainlaw.co.uk.

This edition of "The law made plain" is written to provide you with general information. It is recommended that you seek specific professional advice before taking any action.

© Copyright plainlaw 2004

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