Licence to Assign Heads of Terms
This Licence to Assign Heads of Terms template enables the parties to an assignment – landlord, tenant and assignee – to agree the key points of principle before the landlord prepares a Licence to Assign for the parties to sign.
Most commercial leases prohibit assignment of the lease without the Landlord’s prior written consent. During the term of a lease, a Tenant may need to apply to the Landlord for consent to assign. The Landlord’s consent is typically given in a formal Licence to Assign deed.
Usually, the Landlord has a duty “not to unreasonably withhold or delay consent”. The Landlord should therefore deal quickly with the Tenant’s request for consent and must either agree that consent will be given or give reasonable grounds for refusing consent. (It might be reasonable to refuse consent, for example, if the Landlord reasonably believes that the proposed assignee will not be able to afford the rent). If the Landlord has indicted that consent will be given, the parties should agree the Heads of Terms using this template before the Landlord (or the Landlord’s solicitor) prepares the draft Licence to Assign.
The template is suitable for any type of commercial property, including shops, restaurants, offices and industrial premises. It can be used in conjunction with the Licence to Assign template.
This document prompts the parties to record administrative information, such as their contact details, and details of the lease, and to set out what has been agreed in relation to the assignment, including whether the Tenant is to enter into an Authorised Guarantee Agreement and any fees payable by the Tenant.
This template is duplicated in the Commercial Property Management group of documents under Lease Assignments.
This document is in open format. Either enter the requisite details in the highlighted fields or adjust the wording to suit your purposes.
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