134Provisions as to covenants not to assign etc. without licence

134 Provisions as to covenants not to assign etc. without licence or consent (1) In a lease that contains a covenant, condition or agreement against assigning, underletting, charging or parting with the possession of the premises leased or a part of the premises leased unless a licence or other consent to do so is granted, the covenant, condition or agreement: (a) despite any express term of the lease to the contrary, is to be taken to be subject: (i) to a qualification that has the effect that the licence or consent is not to be unreasonably withheld; and (ii) if the lease is for more than 40 years and is made in consideration wholly or partially for the erection or the substantial improvement, addition or alteration of buildings – to a limitation or qualification that, in the case of an assignment, underletting, charging or parting with the possession (whether by the holders of the lease or an under-lessee and whether immediate or not) effected more than 7 years before the end of the term, no consent or licence is required if notice in writing of the transaction is given to the lessor not later than 6 months after the transaction is effected; and (b) unless an express term of the lease provides to the contrary – is to be taken to be subject to a qualification that has the effect that no fine or sum of money in the nature of a fine is payable for or in respect of the licence or consent. (2) In a lease that contains a covenant, condition or agreement against the making of improvements without a licence or consent, the covenant, condition or agreement is, despite any express term in the lease to the contrary, to be taken to be subject to the qualification that the licence or consent is not to be unreasonably withheld. (3) In a lease that contains a covenant, condition or agreement against the alteration of the user of the leased premises without a licence or consent, the covenant, condition or agreement is, if the alteration does not involve any structural alteration of the premises and despite any express term of the lease to the contrary, to be taken to be subject to a qualification that no fine or sum of money in the nature of a fine, whether by way of an increase of rent or otherwise, is payable for or in respect of the licence or consent.

Law of Property Act 2000 89 (4) A qualification referred to in subsection (1)(a)(i) or (b) does not preclude the right of the lessor to require the payment of a reasonable sum in respect of legal or other expenses properly incurred by the lessor in connection with the licence or consent. (5) A qualification referred to in subsection (2) does not preclude the right of the lessor to require, as a condition of the licence or consent: (a) the payment of a reasonable sum in respect of legal or other expenses properly incurred by the lessor in connection with the licence or consent; (b) the payment of a reasonable sum in respect of any damage to, or diminution in the value of, the premises or any neighbouring premises belonging to the lessor; or (c) in the case of an improvement that does not add to the letting value of the premises and if the requirement is reasonable – an undertaking on the part of the lessee to reinstate the premises in the condition in which they were before the improvement was executed. (6) A qualification referred to in subsection (3) does not preclude the right of the lessor to require: (a) the payment of a reasonable sum in respect of legal or other expenses properly incurred by the lessor in connection with the licence or consent; or (b) the payment of a reasonable sum in respect of any damage to, or diminution in the value of, the premises or any neighbouring premises belonging to the lessor. (7) If a dispute as to the reasonableness of a sum referred to in subsection (4), (5) or (6) is determined by a court of competent jurisdiction, the lessor is bound to grant the licence or consent concerned on payment of the sum that the court determined to be reasonable. (8) In this section, lease means a lease, whether made before or after the commencement of this Act, for a term of not less than one year.