Licence to Assign a Lease
Our Licence to Assign a Lease template:
- Expert-lawyer-drafted template for reliability
- Create a legally-binding licence
- Save on legal fees
- Easy to edit with our guidance notes
How Does It Work?
- 1. Download
- 2. Edit
- 3. Print
- 4. Sign
Landlord’s can use our Licence to Assign a Lease template to grant formal written permission to assign (transfer) a lease from one tenant to another.
This licence to assign incorporates various options, so it is appropriate:
1. where the lease was made on 1 January 1996 or since;
2. whether or not there was someone guaranteeing the tenant’s obligations under the original lease;
3. whether or not there is an option to renew the lease on expiry (called “security of tenure”) under the Landlord and Tenant Act 1954; and
4. regardless of whether the lease is a commercial one or is for residential property.
If a tenant is selling or transferring the remaining term of a lease to a new tenant, it is very likely that the landlord’s permission is needed for the sale or transfer – you can simply check the terms if the lease to see if this is the case. If so, this requires a licence to assign to be completed and signed by the landlord.
An authorised guarantee agreement does not come with this template of the licence to assign. There should be one in the existing lease, you should use. If not, or if its wording isn’t accepted by the present tenant, you can purchase the template AGA separately from Legalo – click on the link.
This licence to assign template should not be used just as it is for “old leases”. There is more about this in the guide to this template. If you are looking for a licence to assign for an “old lease”, then please email us at: firstname.lastname@example.org.
Using the Licence to Assign a Lease template
The template has been drafted by our co-founder and lawyer of over twenty years, David. It is written in plain English and without legal jargon. The download comes with full guidance notes to keep completing your final document simple.
Once purchased, the licence template can be downloaded in Word format and then edited to your requirements. Once the document is complete, it then just needs to be signed by the parties. It is then usually passed by the landlord to the purchaser of the lease.
We provide a full money-back guarantee if you are not happy with your template document for any reason.
When you draft the licence, use our free guidance notes to walk you through the document. A summary of the guidance notes can be viewed here.
What is a Licence To Assign?
The licence to assign is where the landlord and owner of the property grants permission to its tenant to sell or transfer the remaining term of the lease to another party, who will take over as the tenant.
There are situations in which a tenant will want to assign their lease. For example, a landlord owns a building which the tenant is using for storage. The tenant decides they no longer need the building. However, the original lease still has time left on it. If no “break clause” is available, to surrender the lease might cost the tenant their deposit and/or any rent owed to the end of the existing term of the lease.
To avoid this money being wasted, the tenant has presumably asked the landlord for permission to assign the lease to someone who will be able to use the building. If the landlord agrees, the remainder of the term of the original lease would then be transferred to the new tenant. This new tenant then becomes primarily responsible for paying the rent to the end of the term (although, with an AGA, the out-going tenant might still be responsible if the new tenant defaults).
The landlord will want to be sure that the new tenant is able to pay the rent before he consents to the assignment, or he may require someone to act as a guarantor before agreeing to it.
This is different from sub-letting. Where a sub-lease agreement is in place the existing tenant can be held responsible for any default on the original lease, even though a new tenant is in place. For a sub-letting situation you would need a sub-lease agreement and a licence to sub-let which again needs to be signed by the landlord.
If you need the full batch of documents for the assignment of a lease, we offer 20% off when you buy them all at the same time using our discount package – click here for more details.
Click the link to see the full range of commercial property documents we offer.