Assignment of Commercial Lease

Property Law: 03 April 2024

Author: Lauren Woolley & Ralph Davies - Our People

A tenant may wish to assign their lease in certain circumstances, for example if they sell their business, or if the premises’ is no longer suitable.

When a lease is assigned to a new tenant, the current tenant’s legal obligations under the lease are transferred to the new tenant. If drafted and implemented appropriately, this releases the old tenant from their obligations under the lease.

When assigning a lease, landlord consent is first and foremost required. With a retail lease, a landlord must act reasonably when considering whether or not to consent. However, with a commercial lease, the situation will depend on the provisions of the lease agreement.