Alienation covenant
An alienation covenant deals with the transfer of property from one party to another. It is a covenant in a lease which determines whether a tenant can ‘alienate’ the land. This refers to the tenant’s ability to do the following:
- Assigning the lease to another party.
- Underletting or sub-letting the property.
- Sharing occupation of the property.
Alienation may be permitted, it may be prohibited or it may be permitted subject to certain conditions.
According to the Landlord and Tenant Act 1927, where the alienation covenant provides that the tenant cannot alienate the land without consent, the landlord must not unreasonably withhold or delay their consent.
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