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. Once the landlord’s consent has been obtained, the tenant and assignee can enter into a deed of assignment to transfer the lease to the assignee. If the lease is registered at the Land Registry the assignee will then need to register the assignment at the Land Registry.
In this folder we have a Tenant’s Letter seeking Consent to Assign, Heads of Terms for Assignments, Deeds of Assignment, Land Registry Form AP1 and Notice of Assignment. These documents will help tenants to handle a proposed assignment of a lease effectively.
Tenants should refer to the Protocol for Applications for Consent to Assign or Sublet when making 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 help the parties comply with the Protocol.
These Assignment of Lease documents are part of the Property Documents Folder. Just £35.00 + VAT will provide you with 1 year's unlimited access to download all/any documents from the Property Folder.