Lease Assignments and Consents
Leases can be transferred to another person by way of an ‘assignment’, however, there are additional matters that need to be taken into consideration if you choose to assign your lease.
If you are the tenant, you need to make sure that any assignment is carried out in accordance with the lease terms, which may require consent from the Landlord. If the terms of the lease have not been complied with, you may be in breach of the lease and the landlord could forfeit the lease completely.
The covenants and obligations of both the landlord and tenant also have to be considered on assignment. Depending on the age of the lease, there are different rules as to how these obligations are transferred. An outgoing tenant may find that they are still liable for the tenant’s covenants under a lease, even after they have assigned the lease to someone else.
If you are considering making an assignment, or you are a landlord who has been contacted with a request to grant consent, you may want to seek legal advice regarding your obligations under the lease before you negotiate any heads of terms with a prospective buyer, to prevent disagreements later in the transaction.
Our experiences team can guide you in your transaction, whether you are landlord, tenant or assignee.
For more information or advice about Lease Assignments, please contact us today.
