Alienation is the legal transfer of title of ownership to another party.
Rights to dispose of a leasehold interest in land or property are described as alienation provisions.
Usually a lease on a commercial building will permit assignment or subletting of the whole or parts dependent upon a range of conditions being satisfied such as landlord’s consent and defined parameters such a extent of “permitted parts” (for example, whole floors only) and rental rates applicable (rack rental or highest possible market rent achievable ).
When acquiring a new lease it is important to establish (and negotiate for) clear and open alienation rights that allow the future assignment or subletting of the whole or parts without too much hindrance in order to allow flexibility for future growth or contraction. We would advise accordingly and look to establish requirements at the heads of terms stage.