Lease assignment

If you are unhappy about your current commercial lease arrangements, wish to move or if you have encountered unforeseen circumstances you might wish to apply for an assignment of lease.

Get out of a commercial lease

An assignment of lease is a way you can get out of a commercial lease – provided you can find a willing tenant to take over the remainder of it. Some reasons you might want to do this are: –

  • You’re selling the business. When a business is sold, the lease assignment allows the new business owner to occupy the premises.
  • You’re relocating. You may need to move to a different location, making it necessary to assign the lease.
  • You’re downsizing or expanding. Business needs may change, leading to a desire to either reduce or increase the leased space.
  • You don’t need the property any more. If you no longer require the premises, you may seek to have the lease assigned to minimise financial obligations.

To carry out this process, you have to apply to your landlord. If they agree, then the lease can be assigned to the new tenant. However, it’s usually not as simple as that.

If the new tenant is more of a risk for the landlord, you might have to agree to guarantee the lease or make a one-off payment to the landlord to compensate.

The landlord could refuse to allow an assignment of lease. This might happen dependent on the usage of the property; for example the new tenant might want to use it for something vastly different to its current use as specified in the lease. The landlord might also refuse if the new tenant has poor references or unreliable finances.

Sometimes the landlord will accept a surrender of a lease if you wish to leave the business early but this is a matter of commercial negotiation and Inghams would be happy to assist in such cases.

As all leases and circumstances are different, you should seek proper legal advice if you are a tenant seeking to get out of a commercial lease or a landlord facing want-away tenants. In either circumstance, we can help. Please contact your nearest office and arrange an appointment.