Overview

The recent Court of Appeal decision in Clarence House Ltd v National Westminster Bank plc offers welcome guidance on the status of virtual assignments. These are a mechanism used to pass the economic benefit and burden of a lease to a third party without actually assigning the lease to them and are common in large portfolio sales and business transfers.
In this bulletin, we explain how a virtual assignment works, examine the facts of the case and review the Court's decision. We also offer guidance to landlords who may be concerned about virtual assignments and advice to those who may wish to enter into them.
To read more, click 'View Briefing'