Closes 16 Sep 2026
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We provisionally propose that the 1995 Act should clearly facilitate assignments and guarantees between members of the same group of companies as set out in the Consultation Paper at paragraphs 4.132 to 4.141. Do consultees agree?
Please explain why.
We provisionally propose that the rule proposed in Consultation Question 6 should apply to both the assignment itself and any agreement to enter into the assignment (including allowing for it to be made a condition of a landlord giving consent to assign).
However, where there is an agreement to enter into the assignment and a later assignment, the relevant parties to both should be – at the time each is entered into (or consent to an assignment is given) – members of the same group of companies.
Do consultees agree?
We provisionally propose that what constitutes a group of companies for the purpose of facilitating more transactions involving them to be valid for the purposes of the 1995 Act should be based on section 42 of the Landlord and Tenant Act 1954. Do consultees agree?
In particular, we invite views from consultees on the possibility of using the definition in section 42 of the Landlord and Tenant Act 1954 and whether there is a more appropriate definition that might be employed.
We provisionally propose that the 1995 Act should clearly facilitate assignments within partnerships as set out in the Consultation Paper at paragraphs 4.154 to 4.192 and for repeat guarantees to be valid in such circumstances.
The above would require that the partners comprising the assignor and assignee to be in substantially the same partnership. This would be met where:
We invite consultees’ views on whether the greater flexibility afforded by the provisional proposal set out in Consultation Question 9 risks tenants and/or their guarantors (particularly those who are not advised) being put in a materially worse position than under the existing law.
Where consultees believe the 1995 Act currently has an adverse impact on business relationships (other than in respect of transactions involving group companies and partnerships) we invite consultees’ views, together with evidence where possible, on the following:
1. the types of business relationships;
2. the prevalence of such business relationships in the market; and
3. the nature of the adverse impact caused to the business relationship(s) by the 1995 Act.
We provisionally propose that, where a tenant (T) under a lease has the performance of its obligations guaranteed by a guarantor (G), the 1995 Act should facilitate the assignment of the lease by T to G. This proposal would not extend to any agreement entered into in advance by G to complete that assignment. Do consultees agree?
