Assignments of Commercial Leases

April 2013
We have added to our Property folder a number of documents relating to assignments (or transfers) of business leases. These will be of use to occupiers of commercial premises who are assigning (or selling) their leases or who are acquiring (or buying) a lease from an existing tenant.

The Property Management section of our Property folder already contains Heads of Terms for a Licence to Assign as well as a template Licence to Assign. These are documents which involve the Landlord, outgoing Tenant (Assignor) and incoming Tenant (Assignee).

We have added two Deeds of Assignment, which effect the transfer of the Lease from the Assignor to the Assignee. The Deed of Assignment of Unregistered Lease should be used where the Lease is not registered at the Land Registry. In general, this means a lease which was granted for a term of seven years or less. For registered Leases, we have the Deed of Assignment of Registered Lease (Land Registry Form TR1).

In the case of a registered Lease, the transfer must be registered at the Land Registry to be properly effective. Our Form AP1 Application to Register Assignment of Lease can be used for this.

Once an assignment (or transfer) of a Lease has taken place, the Landlord must be informed. This can be done using our Notice of Assignment of Lease.

The contents of this Newsletter are for reference purposes only and do not constitute legal advice. Independent legal advice should be sought in relation to any specific legal matter.

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