This Licence to Assign should be used where the tenant wishes to assign (i.e. sell) the lease to a new tenant and, under the terms of the lease, the landlord’s consent is required.
The Licence includes covenants by the tenant and assignee relating to payment of costs, registration at the Land Registry and performance of the covenants in the lease. There is also an optional surety (or guarantor) covenant and an optional authorised guarantee agreement (AGA).
A landlord will often ask the outgoing tenant to guarantee the assignee’s covenants to pay rent and comply with the terms of the lease. This is known as an authorised guarantee agreement (AGA) and it was introduced by the Landlord and Tenant (Covenants) Act 1995.
As an alternative, or in addition, the landlord may require the assignee to have a guarantor, otherwise known as a surety, to guarantee the assignee’s covenants to pay rent and comply with the terms of the lease.
Optional phrases / clauses are enclosed in square brackets. These should be read carefully and selected so as to be compatible with one another. Unused options should be removed from the document.
This Licence to Assign 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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