If you are moving out of your leased space and assigning the lease to another party, you are required to notify your landlord and obtain their consent. Use this free proforma template for this purpose.<\/p>\n <\/div>\n \n\nDownload Now<\/a> <\/section>\n <\/div>\n\n\n\n\n A lease assignment<\/a> is where you find a new tenant to take over your lease and lease commitments. Your interest in the lease passes to another company or individual, and you cease to be the tenant. <\/p>\n\n\n\n You will generally need to obtain your landlord\u2019s consent to take advantage of this option. The requirements for this will be detailed in your lease. The most common restriction is that you need their express consent. This is in the form of a written deed. Often, this will also include specific conditions that must be met. For instance, the assignee might need to have a particular financial standing. Therefore, your landlord will typically need to consent to both the assignment and the chosen assignee (the person taking over the lease). To ensure that you can quickly secure your landlord\u2019s consent for the new tenant, find a tenant who can adhere to all the conditions of your original lease. <\/p>\n\n\n\n To ensure the assignee\u2019s suitability, your landlord may review their financial records to confirm timely rent payment. This may be challenging if you assign your lease to a small or new business with a limited history. The landlord may also ask for references from prior landlords to ensure the premises are maintained. If the proposed assignee does not meet requirements, the landlord may withhold consent or seek alternatives like additional securities, such as a personal guarantee or a higher deposit amount.<\/p>\n<\/div>\n\n\n\n It is also likely that the landlord will want the current tenant to enter into an Authorised Guarantee Agreement. Most leases will include this as a condition a landlord can impose for their consent to an assignment. An authorised guarantee agreement is a document in which the tenant (which may be a company) assures the landlord that the tenant will be liable for any breach of the lease by the new tenant. Unfortunately, this means that most assignments won\u2019t provide a full release for the tenant. However, it does mean that the tenant is not directly liable as the tenant after the assignment, only as a guarantor. <\/p>\n\n\n\n A sublet<\/a> (an underlease) is different from a lease assignment. Here, your lease agreement with your landlord remains in place. Therefore, legally, you are still the tenant of the property. Likewise, you are still responsible for all commitments contained in your lease. With this option, you find a subtenant to lease the commercial premises (or part of the commercial space you are renting) and enter into a sublease with them. You essentially establish a landlord-tenant relationship with this new tenant, and you will both have obligations to each other. <\/p>\n\n\n\n You likely need your landlord\u2019s permission to sublet your lease. While the landlord usually does not need to approve the subtenant since they are not involved, ensure the subtenant can fulfil all lease terms, especially financial obligations, as this impacts you. Your lease may require landlord consent for the sublease, allowing them to review and potentially refuse based on disagreement, which can delay the process.<\/p>\n\n\n\n With a sublease, you remain responsible for fulfilling your obligations in the lease with your landlord. Additionally, you must ensure that your subtenant meets all responsibilities under the sublease. This is crucial because you are still liable to your landlord. If your subtenant fails to pay the rent owed, your landlord can seek payment from you, and you, in turn, can pursue the subtenant. Moreover, since sublease arrangements often require consent, there may be a contract in place among all parties. This is known as a licence to underlet. This could grant the landlord the right to pursue the subtenant for any breaches or to enforce indemnity directly.<\/p>\n\n\n\n\n\n Continue reading this article below the form\n <\/i>\n<\/a>\nAssigning Your Lease<\/h2>\n\n\n\n
Subletting Your Lease<\/h2>\n\n\n\n
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\n UK Lease Assignment Template<\/div>\n
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