Landlord’s consent to sublease request: A case update (Victoria)

By Alicia Hill, Principal

The recent appeal decision in Aventus Cranbourne Thompson Road Pty Ltd v Home Consortium Leasehold Pty Ltd1 (Aventus) places a spotlight on the right to sublease premises under a commercial lease, particularly on what amounts to “permitted use”, and to a lesser extent what amounts to “unreasonably withholding consent” by the landlord.

This paper looks at:

• What happened in the Aventus case?
• What is the impact of the case on a right of a tenant to sublease part of premises?
• The interpretation of restrictions on subletting under a lease – What amounts to permitted use?
• What amounts to unreasonably withholding consent to sublease?
• What should a landlord take into account in determining whether to give a tenant the right to sublease?
• What relevance is a landlord’s corporate structure on the exercise by a tenant of a right to sub-lease?
• How should you advise landlords when faced with requests from tenants wanting to sublease?

The paper can be found at the following link:TEN Leases Paper

If you have any questions, please contact Alicia Hill on (03) 8540 0292 or alicia.hill@mst.com.au.