One of our expert team members can help you with the assignment of lease and acquisition of existing leasehold premises or the drafting of a new lease.
Definition of “Assignment of Lease”
The Assignment of Lease is a process where all rights that a lessee or tenant possesses over a property are transferred to another party.
What is an Assignment of Lease?
If a tenant wants to get out of a lease that is not expired, one of the legal options is to assign or transfer the lease to somebody else. For example, if somebody signs a commercial lease for 12 months and the business stops working after 10 months, that person can still opt not to pay for the remaining 2 months by assigning the lease. The document attesting the transfer is called an “Assignment of Lease Agreement”.
Are there any duties placed on the landlord when an assignment of lease is to take place?
The Landlord and Tenant Act 1988 provides for the following duties placed on the landlord when an assignment is to take place:
- To give consent to an assignment, except where it is reasonable not to do so
- To give consent without undue delay
- If the landlord also requires the consent of a superior landlord, to take reasonable steps to secure consent without undue delay
What happens if the landlord and tenant cannot come to an agreement over the assignment of a lease?
In some scenarios, a tenant will feel that he can justify a claim for assignment of the lease and the landlord is unreasonably withholding consent. If this situation occurs the tenant has the option of simply carrying on the transaction for the assignment of the lease.
We understand that this can be a complicated process and will advise you on all issues, keeping you fully informed at all times throughout the process. If you have any specific questions or would like more detailed advice on the assignment of lease, then please contact on 01206500181.