Subtenant rights when landlord lease ends HA 1988 s. 18
When a mesne landlord's superior tenancy ends, a lawful assured subtenancy continues under the head landlord, unless Schedule 1 exemptions apply.
If at any time— a dwelling-house is for the time being lawfully let on an assured tenancy, and the landlord under the assured tenancy is himself a tenant under a superior tenancy; and the superior tenancy comes to an end, then, subject to subsection (2) below, the assured tenancy shall continue in existence as a tenancy held of the person whose interest would, apart from the continuance of the assured tenancy, entitle him to actual possession of the dwelling-house at that time. Subsection (1) above does not apply to an assured tenancy if the interest which, by virtue of that subsection, would become that of the landlord, is such that, by virtue of Schedule 1 to this Act, the tenancy could not be an assured tenancy. Where, by virtue of any provision of this Part of this Act, an assured tenancy which is a periodic tenancy (including a statutory periodic tenancy) continues beyond the beginning of a reversionary tenancy which was granted (whether before, on or after the commencement of this Act) so as to begin on or after— the date on which the previous contractual assured tenancy came to an end, or a date on which, apart from any provision of this Part, the periodic assured tenancy could have been brought to an end by the landlord by notice to quit, the reversionary tenancy shall have effect as if it had been granted subject to the periodic assured tenancy. The reference in subsection (3) above to the previous contractual assured tenancy applies only where the periodic tenancy referred to in that subsection is a statutory periodic tenancy and is a reference to the fixed-term tenancy which immediately preceded the statutory periodic tenancy.
Text in force at .
Source: legislation.gov.uk — The National Archives (legislation.gov.uk), reproduced under licence Open Government Licence v3.0.
What it actually says
This provision protects subtenants holding lawful assured tenancies when the tenancy of their immediate landlord (the middle or mesne landlord) comes to an end. Rather than forcing the subtenant to leave when the mesne landlord's interest terminates, the subtenant's agreement automatically continues directly under the superior landlord.
This automatic continuation does not occur if the direct relationship with the superior landlord would create a tenancy that Schedule 1 prevents from being an assured tenancy (such as where the superior landlord is a resident landlord or an exempt body).
Where a new reversionary tenancy is granted to take effect in the future, but a periodic or statutory periodic assured tenancy carries on past that start date, the new tenancy takes effect subject to that existing assured tenancy.
When it applies
- A middle landlord surrenders their head lease to the freeholder while an assured subtenant is living in the property.
- A superior landlord terminates a mesne landlord's lease and attempts to demand vacant possession from the subtenant.
- A landlord grants a future reversionary tenancy to a third party while a statutory periodic assured tenant remains in occupation.
What this section does not say
- Unlawful subletting where the middle landlord lacked permission or right under their lease to grant a subtenancy.
- Rules governing how a family member inherits a tenancy after a tenant's death, which are governed by section 17.
- Standard notice periods and possession procedures for ending an assured shorthold tenancy, which are set out under section 21.
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This page reproduces the text of HA 1988 s. 18 in force at the date shown and explains it in general terms. It is not legal advice and takes no account of the circumstances of your case, which can change the answer completely. For a live dispute, for limitation periods, and before taking any step in court, consult a qualified lawyer in England and Wales.