An assignment of lease is the answer to challenges like: A tenant who is willing to move to another apartment but is not certain of what to do because he has a contract with his Landlord which is preventing him from moving, a tenant who is willing to take over as tenant of the property can apply to his landlord for an assignment of lease. If everyone agrees, the lease can be handed over to the new tenant. This may free you from your obligations but many leases state that the tenant who is selling has to guarantee the performance of the new tenant. Sometimes it may be possible to negotiate your way out of this, so contact us on advice about this and to assist in negotiation.
If you let any premises, it’s important to be aware that a range of complex legislation controls the relationship between Landlord & Tenant. To safeguard against potential disputes relating to ownership and occupation of property, our specialists can provide you with clear advice and assistance. Some leases do not allow assignments. For certainty on the class of your lease, contact us to check this and see what your options are.
A landlord can refuse to give permission in some cases. The landlord could refuse permission if the property would be used for a different use from that in the lease. A landlord can also refuse if the new tenant’s references aren’t good enough, or for financial reasons. If you are unsure talk to one of our experienced solicitors who will be able to tell you what needs to be done.
If the lease allows it and unless your landlord has good reason not to give permission, assignments are often the easiest way of getting out of a commercial lease. The new tenant will be vetted in the same way as you, with financial checks and references, and will have to sign up to the lease themselves.
Generally, however, an assignment of lease is the easiest and fastest way to hand the lease over to someone else. Your landlord must respond quickly and in writing and, if there is anyone else to ask (i.e. if your landlord has a landlord himself), the permission of everyone must also be sought quickly.
An assignment of lease might be the best thing for your business. To make sure that you act within the law, and to know where you stand, call us for help in contacting your landlord, making negotiations and securing the future of your business. As a commercial tenant you will be familiar with the request you must make to your landlord before you assign/transfer the lease to a new tenant.
An assignment usually involves the landlord checking that the financial references of the new proposed tenant are acceptable before proceeding any further. After this, you will need to make a formal request for the landlord’s consent to transfer the lease.