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Will a right granted in an underlease survive the part surrender of the headlease and be binding on the head tenant?
I should be grateful for your advice/thoughts regarding the following matter: I act for a client who has granted an underlease of part of the premises demised under the head lease. The underlease granted a non-exclusive right to the undertenant to use a meeting room which is within the head lease demise but does not form part of the underlet property. The use is for a limited number of hours per week, on prior notice and for a fixed daily fee (paid only if the room is actually used). My client now wishes to surrender that part of the head lease demise as is included within the underlease. This means that the head landlord will become the immediate landlord of the undertenant.
What is the position regarding the right of the undertenant to use the meeting room? Will it survive the part surrender and be binding on the head tenant? Clearly, the head landlord cannot grant such right afresh to the undertenant.