Lease Assignment
Assigning a commercial lease means handing over your responsibilities as tenant to someone else — usually because you’re selling your business, moving to a new location, or no longer need the space. It can be a smart way to exit a lease without having to negotiate a formal surrender with your landlord.
At Jonathan Lea Network, we help businesses like yours manage lease assignments smoothly and with confidence. Whether this is part of a wider business transaction or a standalone matter, we’ll guide you through the legal process, explain your options clearly, and handle all the paperwork on your behalf — so you can focus on your next step.
When Lease Assignments Are Needed
Commercial lease assignments are commonly used when:
- Selling your business: If the lease forms part of the assets being transferred, the buyer will usually require an assignment of the lease.
- Relocating or downsizing: You may wish to exit a lease early without incurring penalties or negotiating a surrender.
- Group restructuring: Internal reorganisations within corporate groups often involve moving leases between entities.
- Lease not needed anymore: Assignment is often the most viable route when exiting a space before the lease expiry.
- We support clients through standalone assignments and those forming part of wider business or asset sales.
Legal Requirements and Landlord Consent
Most commercial leases contain clauses restricting assignment without the landlord’s written consent. This is often referred to as the “alienation clause”. While landlords must not unreasonably withhold or delay consent, they are typically allowed to impose conditions such as:
- Evidence that the assignee has sufficient financial strength
- The assignor entering into an Authorised Guarantee Agreement (AGA)
- Payment of the landlord’s legal and/or surveyor’s fees
- A rent deposit or personal guarantee from the assignee
- We handle the entire landlord consent process, negotiating terms that protect your position.
The Assignment Process
A typical lease assignment for an outgoing tenant will involve:
- Lease review
We analyse your lease’s alienation clause and assess any restrictions on assignment. - Negotiation of terms
Agreeing the assignment terms, such as premium, apportionments, and timing. - Landlord application
Preparing and submitting the formal request for consent, supported by relevant information. - Document drafting
Preparing the Licence to Assign, Deed of Assignment, and any AGA or Rent Deposit Deed. - Pre-completion checks
Ensuring there are no arrears or breaches of covenant before completion. - Completion and post-completion
Overseeing execution and, if necessary, handling Land Registry registration.
We project manage every stage to reduce delays and ensure your transaction stays on track.
Risks and Considerations
When assigning a lease, you must consider:
- Ongoing liability
If required to sign an AGA, you may remain liable for the lease obligations if the assignee defaults. We’ll assess this risk and try to limit its impact. - Legal compliance
Assigning without consent or proper documentation could invalidate the assignment and expose you to claims. - Financial exposure
Even after assignment, liabilities such as service charge disputes or disrepair claims could come back to you without proper protections. - Stamp Duty Land Tax (SDLT)
SDLT may be payable if a premium is involved or the rent is high. We calculate and file this for you. - Registration
Leases over 7 years (or assigned leases that meet registration criteria) must be registered. We manage this process in full.
Our Lease Assignment Services
We offer fixed-fee and bespoke support packages to help outgoing tenants through every stage:
- Lease review and risk analysis
- Drafting and negotiating all assignment documentation
- Submitting landlord consent applications and liaising with their solicitors
- Preparing Authorised Guarantee Agreements where required
- Handling SDLT and Land Registry matters
- Advising on related business or asset sale implications
Why Choose Jonathan Lea Network?
- Expert legal team: We specialise in commercial lease matters for SMEs across a wide range of sectors
- Fast, proactive service: We move quickly to meet tight transaction timelines
- Clear advice: Complex legal concepts are explained in plain English so you can make informed decisions
- Value for money: Transparent pricing and cost-effective fixed fees wherever possible
- Collaborative approach: We work seamlessly with agents, surveyors, and your other advisers
Get in Touch
If you’re looking to assign a lease and exit your commercial premises, we’re here to help. We offer clear, practical legal advice and efficient transaction handling to get you over the line with minimal fuss.
Contact us today for a free 20-minute consultation.
📞 Call: +44 (0)1444 708640
📧 Email: wewillhelp@jonathanlea.net
🌐 Visit: jonathanlea.net
FAQs: Lease Assignment
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Do I always need landlord consent to assign a lease?
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Yes, in nearly all cases. Most leases require landlord consent before an assignment can take place, and failure to obtain consent properly can invalidate the transfer.
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Will I still be liable after assigning the lease?
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Often yes. If you’re required to enter an AGA, you will remain liable for the assignee’s default for a period. We’ll advise you on how this works and how to manage the risk.
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Who pays the landlord’s legal fees?
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Usually, the outgoing tenant (assignor) pays the landlord’s legal and surveyor’s fees. These should be disclosed upfront and must be reasonable.
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What happens if the landlord refuses consent?
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They can only refuse on reasonable grounds. If consent is unreasonably withheld or delayed, you may be entitled to legal remedies.
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How long does a lease assignment take?
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Typically 4 to 8 weeks, depending on the landlord’s responsiveness, complexity of the documents, and whether registration is required.
Our Areas of Experience
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Acquisitions and disposals of freehold and leasehold properties, including agricultural land and buildings
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Construction contracts
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Development projects including planning agreements, options, conditional contracts and joint venture arrangements
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Leasebacks and re-financings
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Leasehold arrangements and landlord and tenant negotiations
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Leasehold enfranchisement;Planning contracts including s.106 agreements
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Residential site assembly and plot sale disposal
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Short term licence to occupy agreements
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Vacant property management, including property guardian contractual documentation
Our Commercial Real Estate Team
What Our Clients Say
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However, please be aware that the free 20 minute call is at our discretion. If you are more looking for advice and guidance on an initial call, we may instead offer a one-hour fixed fee appointment instead.
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