Consent by a chargee where the landlord's title is subject to a charge

This is where the landlord's title is subject to a charge at the time that a sub-lease is granted. It is different to the situation where a chargee has a restriction on the landlord's title preventing a disposition without a consent. This is covered in detail in consent by a restrictioner.

In the context of this section, the term 'charge' includes legal charges, mortgages, fixed equitable charges, and floating charges.

The lack of a consent by a chargee of the landlord's title will not prevent the granting of absolute title to the sub-lease. If a consent has not been lodged, the following entry will be made in the register of the sub-lease:

"The title to the lease is, during the subsistence of the charge dated .... in favour of .... affecting the lessor's title (and, to the extent permitted by law, any charge replacing or varying this charge or any further charge in respect of all or part of the sum secured by this charge), subject to any rights that may have arisen by reason of the absence of chargee's consent, unless the lease is authorised by section 99 of the Law of Property Act 1925."

The purpose of this entry is to alert any potential purchasers to the possible vulnerability of the registered lease.

The next page looks at the evidence that can be lodged by a chargee.