If an existing lease is assigned part way through its term by an
existing tenant to a new tenant, and the new tenant receives an
inducement, that will be a relevant transaction. The lease must
originally have been granted by whoever holds the superior
interest, so there is a
grantor. The inducement will be chargeable as a
reverse premium, however, only if the inducement is provided by the
grantor, or by a person connected with the grantor, or by a nominee
or person directed by either (
BIM41100).
Thus, a commercial payment by an existing tenant to induce a
new tenant to take over an onerous lease will not normally result
in a charge on the new tenant. There will be a charge only if the
tenant paying the reverse premium is connected with the landlord,
or is acting on the landlord's behalf in making the payment.
