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Sub Lease Agreement Template for Ireland

A Sub Lease Agreement under Irish law is a legally binding document that establishes the terms and conditions under which a tenant (acting as sub-landlord) grants occupation rights to a third party (sub-tenant) for all or part of a property they themselves lease from a head landlord. The agreement must comply with Irish property law, including the Landlord and Tenant Acts and the Land and Conveyancing Law Reform Act 2009, while ensuring consistency with the terms of the head lease. It covers essential elements such as rent, duration, permitted use, maintenance obligations, and requires the head landlord's consent.

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What is a Sub Lease Agreement?

The Sub Lease Agreement is utilized when a tenant wishes to transfer part or all of their leasehold interest to another party while maintaining their original lease with the head landlord. This arrangement is common in commercial settings where businesses need to optimize their space usage or reduce costs. The document must carefully balance the interests of all three parties - head landlord, tenant (as sub-landlord), and sub-tenant - while ensuring compliance with Irish property law and the original head lease terms. It typically requires explicit consent from the head landlord and must address key aspects such as rent payments, maintenance responsibilities, insurance requirements, and permitted use of the property. The agreement is particularly relevant in Ireland's dynamic commercial property market, where flexibility in property arrangements is increasingly important for business operations.

What sections should be included in a Sub Lease Agreement?

1. Parties: Identifies all parties to the sub-lease: the tenant (as sub-landlord) and the sub-tenant, including full legal names and addresses

2. Background: Recitals explaining the head lease's existence, the tenant's right to sub-let, and any relevant context

3. Definitions: Defines key terms used throughout the agreement, including references to the head lease

4. Demise: The formal grant of the sub-lease, specifying the property and term

5. Rent and Payment Terms: Details of rent amount, payment schedule, review periods, and payment methods

6. Sub-tenant Covenants: Sub-tenant's obligations including maintenance, use restrictions, and compliance with head lease terms

7. Sub-landlord Covenants: Sub-landlord's obligations and warranties, including maintaining the head lease

8. Insurance: Insurance requirements and responsibilities of each party

9. Assignment and Further Sub-letting: Restrictions and conditions on assignment or further sub-letting

10. Termination: Circumstances and procedures for early termination

11. Head Landlord Consent: Confirmation of head landlord's consent and any conditions attached

12. Notices: Process for serving formal notices between parties

13. Governing Law: Confirmation of Irish law as governing law and jurisdiction

What sections are optional to include in a Sub Lease Agreement?

1. Service Charges: Include when the sub-tenant is responsible for a portion of building service charges

2. Break Clause: Include when either party has the option to terminate early under specific conditions

3. Fit-out Works: Include when the sub-tenant is permitted to carry out initial modifications

4. Car Parking: Include when car parking spaces are part of the sub-lease

5. Utilities and Services: Include when there are specific arrangements for utilities separate from service charges

6. Guarantor Provisions: Include when a guarantor is required for the sub-tenant's obligations

7. Environmental Matters: Include for properties with specific environmental compliance requirements

8. Planning Use: Include when specific planning use restrictions need to be highlighted

What schedules should be included in a Sub Lease Agreement?

1. Schedule 1 - Property Description: Detailed description of the sub-let property including plans and measurements

2. Schedule 2 - Head Lease: Copy or relevant excerpts of the head lease

3. Schedule 3 - Rent Review Provisions: Detailed procedures for rent reviews if applicable

4. Schedule 4 - Service Charge Provisions: Breakdown of service charge calculations and obligations

5. Schedule 5 - Condition Schedule: Schedule documenting the condition of the property at the start of the sub-lease

6. Schedule 6 - Permitted Use: Detailed description of permitted uses of the property

7. Appendix A - Head Landlord's Consent: Copy of the head landlord's written consent to the sub-lease

8. Appendix B - Plans: Property plans and drawings

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

Ireland

Publisher

Genie AI

Document Type

Lease Agreement

Cost

Free to use

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