Assignment of lease
Explore how we can help businesses with their commercial lease requirements.
Contact our teamThe assignment of a lease allows a tenant to transfer their leasehold interest in a commercial property to another party, effectively stepping out of the lease agreement.
Whether you’re looking to exit a lease early or acquire one from an existing tenant, the process must be carefully managed to ensure that all parties—landlord, current tenant, and incoming tenant—are fully protected. At Moore Barlow, we specialise in guiding clients through this complex procedure, ensuring the assignment is legally sound and aligns with your business needs.
For tenants, assigning a lease can provide an exit strategy when business circumstances change, while for landlords, it’s essential that the new tenant is suitable and the terms of the lease continue to be met. Our expert solicitors ensure that your assignment is handled smoothly and efficiently, safeguarding your interests at every stage.
Richard Hughes
Partner | Commercial Property, Real Estate, Real Estate Finance
What is an assignment of lease?
An assignment of a lease occurs when an existing tenant transfers their rights and obligations under a commercial lease to a new tenant. The new tenant effectively “steps into the shoes” of the original tenant, taking over the lease for the remainder of its term. Assignments often require the landlord’s consent, and specific conditions may apply to ensure that the incoming tenant is suitable and financially secure.
For landlords, the process must be carefully monitored to ensure that the lease terms are upheld by the new tenant, while outgoing tenants should ensure they are fully released from any future liabilities where possible.
How we can help
Moore Barlow’s experienced team is on hand to manage every aspect of your lease assignment. We understand the balance between meeting legal requirements and securing the most advantageous outcome for you. Whether you’re the assigning tenant, the landlord approving the assignment, or the incoming tenant, we tailor our advice to suit your specific situation.
Our services cover:
Due diligence
We ensure the new tenant is fully aware of the lease terms, and we advise landlords on assessing the suitability of the incoming tenant.
Reviewing the lease terms
Before proceeding with an assignment, we carefully review the existing lease to identify any restrictions or requirements, such as landlord consent, that must be met to complete the assignment.
Negotiating consent
If you’re the outgoing tenant or the landlord, obtaining and granting consent is often required before an assignment can proceed. We manage this process, ensuring all parties’ interests are addressed and that any necessary guarantees are in place.
Who we help
We assist a wide variety of clients in navigating lease assignments, from tenants looking to assign their leases due to business changes to landlords concerned about the incoming tenant’s suitability. We also work closely with incoming tenants acquiring leasehold properties, providing clarity on their new obligations under the lease and negotiating favourable terms where applicable.
Our expertise spans multiple sectors, from retail to office space, and we work with businesses large and small to ensure that lease assignments proceed smoothly and protect all parties involved.
Meet our team of commercial property solicitors
Jo Farr
Partner | Commercial Property, Real Estate, Land Development, Real Estate Finance
Richard Hughes
Partner | Commercial Property, Real Estate, Real Estate Finance
Julian Parkes
Partner | Commercial Property, Real Estate, Landed Estates and Farming
Nellie van der Lande
Senior Associate | Commercial Property, Real Estate Finance, Rural Services
Callum Leary
Senior Associate | Commercial Property, Real Estate, Real Estate Finance
Sam Ho
Senior Associate | Commercial Property, Real Estate, Real Estate Finance
Sharon Mays
Senior Associate | Commercial Property, Real Estate, Land Development, Real Estate Finance
Nicola Donnelly
Associate | Real Estate, Plot Sales, Residential Property
Fiona Hampton
Chartered Legal Executive | Commercial Property, Land Development, Plot Sales
Helen Archibald
Consultant | Commercial Property, Real Estate, Land Development
Janice Taylor
Conveyancing Executive | Real Estate, Plot Sales, Residential Property
Why choose Moore Barlow?
At Moore Barlow, we understand that the assignment of a lease is a strategic decision for your business. We combine legal expertise with a practical approach to ensure that the process aligns with your business goals and provides the flexibility or security you need.
Our team’s attention to detail and proactive handling of assignments means you can have confidence that every step is covered, from gaining landlord consent to finalising documentation. Whether you’re looking to exit a lease or take on new premises, we ensure your rights are protected and your transition is seamless.
Contact us
If you’re considering assigning a lease or need advice on accepting a new tenant through assignment, contact Moore Barlow today. Our experienced team is ready to provide the guidance and legal support you need to navigate this complex process smoothly. Let us take care of the legalities so you can focus on what comes next for your business. Reach out to us to discuss how we can help you with your lease assignment needs.
Contact our commercial property team
Frequently asked questions
Are tenants liable after assignment of lease?
After the assignment of a lease, the original tenant may still be liable for certain obligations under the lease, depending on the terms of the lease agreement. In many cases, particularly for leases signed before 1996, the original tenant may retain liability for rent and other obligations if the new tenant (assignee) fails to meet them. This is known as “privity of contract.” However, for leases signed after 1996, liability may transfer entirely to the assignee, unless an “Authorised Guarantee Agreement” (AGA) is in place, which requires the original tenant to guarantee the assignee’s performance.
Difference between assignment and transfer of lease
The terms “assignment” and “transfer” of a lease are often used interchangeably, but they have distinct meanings.
- Assignment of a lease: This occurs when the tenant (assignor) transfers their entire interest in the lease to a new party (assignee), effectively stepping out of the lease. The assignee takes over the tenant’s obligations under the lease for the remainder of the lease term.
- Transfer of a lease: While similar to an assignment, a transfer usually refers to a more formal change in ownership, often associated with the sale of a property or business. It could imply broader changes in rights and responsibilities than an assignment.
In both cases, landlord approval is typically required, but an assignment focuses on the transfer of the tenant’s interest in the lease, while a transfer might be broader, involving more than just the lease terms.
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