Assignment of Leases
Are you renting a property for commercial use? Do you want to move, but have a contract with your landlord preventing you from doing so? Feeling stuck?
How to Get Out of a Commercial Lease
If you’re unhappy about your current commercial lease situation, an assignment of lease may be the answer.
If you know or can find someone who would be willing to take over as tenant of the property, you can apply to your landlord for an assignment of lease. If everyone agrees, the lease can be handed over to the new tenant, freeing you from many of your obligations. It is worth noting that many leases state that the tenant who is selling has to guarantee the performance of the new occupants. Sometimes it may be possible to negotiate your way out of this, so it’s a good idea to get professional advice.
Sometimes, a landlord can refuse to give an assignment of lease. For example, if you were renting a warehouse and using it for your bookbinding business, but the new tenant intends to use it as a car-repair centre, the landlord could refuse permission because the property would be used for a different use from that in the lease. A landlord can also refuse if the new tenant’s references aren’t good enough, or for financial reasons. If you are unsure talk to one of our experienced solicitors who will be able to tell you what needs to be done.
If the lease allows, and unless your landlord has good reason not to give permission, assignments are often the easiest way of getting out of a commercial lease. The new tenant will be vetted in the same way as you, with financial checks and references, and will have to sign the lease themselves.
Maximise Your Lease
If you are considering a Commercial Lease you should have it checked by an experienced solicitor. Our 5-star rated property team have put together this guide to provide you with our top tips to make the most out of your Commercial Lease.
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