When the lessee creates a sublease, the lease is then often referred to as the ‘head lease’. The formal requirements of a sublease are similar to that of a lease.

Usually the head lease contains some restrictions on the grant of subleases, which need to be complied with when a sublease is granted.

The grant of a sublease without the consent of the lessor is usually a breach of the lease. Leases are subject to section 133B(1) of the Conveyancing Act 1900 (NSW) which stipulates that consent may not be unreasonably withheld. Click here for further information on Subleases