What is the difference beteen a Head Lease and Sub Lease?
What is a Head Lease?
A Head Lease is a Lease to an entity that will subsequently grant leases to sub-lessees who will be tenants in possession.
It sets out the promises the Landlord has made to his Superior Landlord. The promises contained in this Head Lease will bind the Tenant if he has prior knowledge of those promises.
What is a Sub Lease?
A Sub Lease is the name given to an arrangement in which the lessee in a lease assigns the lease to a third party, thereby making the old lessee the sub lessor, and the new lessee the sub lessee, or subtenant. Should you take over a lease in a co-operative or rental apartment from the current tenant. The sublet renter usually shares responsibility for the apartment with the main leaseholder. A lessee can transfer the whole or any part of his interest in the property by Sub-leasing. A sub Lease will be in place when can be made by a transaction in which leased property is released by the original lessee to a third party, and the lease agreement between the two original parties remains in effect. This also includes a property which is already leased is leased again, but not for a longer period that the unexpired part of the original lease A sub Lease will be in place when an agreement between a tenant and a sub-tenant that requires the tenant to remain responsible for the performance of the lease to the head landlord.