Assignments of Leases
Most business leases permit a tenant to assign (or sell) the lease subject to obtaining the landlord’s consent. The landlord’s consent is usually given in a formal Licence to Assign.
Before a landlord will give consent he will usually want to be satisfied that the incoming tenant will be able to pay the rent and perform the other tenant covenants in the lease. It is open to a landlord to request a guarantor or a rent deposit if the incoming tenant is of poor covenant strength.
In this folder we have Heads of Terms for Assignments, Letters for the Landlord to send to the Tenant and a Licence to Assign. The Licence is a tripartite document involving the landlord, outgoing tenant and new tenant (assignee).
Landlords should refer to the Protocol for Applications for Consent to Assign or Sublet when handling an application for consent to assign. The Protocol can be found at http://www.propertyprotocols.co.uk. Compliance with the Protocol is voluntary but the Protocol has broad support in the commercial property sector. Our documents are designed to aid compliance with the Protocol.
Other documents may be needed during the term of a lease. A wide variety of documents can be found in our Managing the Letting, Breaches of the Lease, Alterations and Underletting folders.