A lease assignment is where an existing tenant transfers their lease to a new tenant. This is often used where the current tenant cannot bring the lease to an end early, either because there is no break clause or the landlord has refused to agree to a surrender.
Most commercial leases restrict assignment and require the landlord’s consent, usually documented in a formal licence to assign. It is also common for the incoming tenant to cover the landlord’s legal costs in granting that consent.
At first glance, taking a lease assignment can seem like a quick and cost-effective way to occupy a property. However, it is important to understand that you are not starting with a clean slate. When you take an assignment, you step into the shoes of the outgoing tenant and inherit all obligations under the lease. This includes rent, repair and maintenance responsibilities, and compliance with all lease terms. In the case of full repairing and insuring leases, these obligations can be significant.
As your Solicitor we can help you understand exactly what you are taking on before you commit. This includes reviewing the lease to identify any onerous provisions or restrictions that may affect your business, as well as checking whether the landlord’s consent requirements have been properly followed. If they are not, the assignment could be invalid.
Why legal advice matters
There may also be hidden risks, such as existing breaches of the lease, ongoing disputes, or unpaid sums, which could become your responsibility after completion. Legal advice helps uncover these issues and, where possible, negotiate protections.
Finally, the assignment documentation itself must be carefully prepared to ensure your position is properly protected.
Obtaining legal advice at the outset provides clarity, reduces risk, and helps you make an informed decision—often at a cost far lower than the consequences of proceeding without it.
For help and advice call our Commercial Property Team at Ware & Kay on York 01904 716000, Wetherby 01937 58210 or Malton 01653 692247 or email law@warekay.co.uk.
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