Assigning your lease

What does assigning your lease mean?

Assigning a lease is the term used when a tenant hands over their lease to a third party. While this sounds relatively straightforward in theory, this process can often be very complex and take a lot of time. There are many things to consider such as whether the lease allows assignment or if the landlord gives consent.

If you are the existing tenant, you may still be liable even after your lease has been assigned to the tenant if you entered into your lease before 1st January 1996. If you entered into a lease after this date you will need to sign an Authorised Guarantee Agreement (AGA). This document essentially means that the old tenant will guarantee that the new tenant will continue their duties as per the lease. This can pose as a risk to the old tenant and therefore you will need to review and be certain of who you are assigning to.

When you are the new tenant, there are also a number of risks that you have to be aware of before you sign onto the lease. The existing lease will most likely have been written with the landlord and old tenant in mind so you will need to make sure that it is favorable to you and your business before signing on.

Whether you are the landlord, existing tenant or the new tenant, our solicitors will be able to assist you at any stage and negotiate to get you the best deal.