Occasionally at the commencement of a Lease, or during the term, the tenant by agreement with the landlord agrees to formally sub-let all or part of the premises for the remainder of the term and/or any renewal periods. The preparation of the Sub-Lease is usually undertaken by the existing Tenant.
The Retail Leases Act indicates that a landlord can claim the reasonable legal or other expenses incurred in respect of a sub-lease itself which may well include the preparation of the sub-lease if that is more expedient than the landlord having to peruse and approve a tenant’s proposed sub-lease.
Occasionally a Sub-Lease will include certain agreed variations to the Lease, but the existing Tenant and guarantors will remain liable to the Landlord throughout the duration of the Sub-Lease or any renewal.