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Virtual assignments come of age

By: Language: English Series: Lovells Real Estate Quarterly ; Spring 2010, 3-4(2)Publication details: 2010Subject(s): Summary: Virtual Assignments (VAs) are transfers of the economic burdens and benefits of a lease without any actual assignment of the underlying leasehold interest or any change in the occupancy of the premises. Generally landlords have accepted this new concept but it has recently been challenged in Clarence House Ltd v National Westminster Bank PLC, [2009] EWCA Civ 1311, CA (see E149610). The Court of Appeal held that the VA did not amount to a breach of covenants in the bank's lease and did not alter the underlying relationship between landlord and tenant. VAs will continue to serve the industry,helping tenants without damaging the interests of landlords.

Virtual Assignments (VAs) are transfers of the economic burdens and benefits of a lease without any actual assignment of the underlying leasehold interest or any change in the occupancy of the premises. Generally landlords have accepted this new concept but it has recently been challenged in Clarence House Ltd v National Westminster Bank PLC, [2009] EWCA Civ 1311, CA (see E149610). The Court of Appeal held that the VA did not amount to a breach of covenants in the bank's lease and did not alter the underlying relationship between landlord and tenant. VAs will continue to serve the industry,helping tenants without damaging the interests of landlords.

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