Assignment of Lease Agreements

Assigning a lease is a significant step in any commercial tenancy and involves transferring the rights and obligations of an existing tenant to a new party. Whether you’re a tenant seeking to exit a lease early or a landlord assessing an incoming assignee, the assignment process carries legal risks that must be carefully managed. From obtaining the landlord’s consent to reviewing title documents and drafting formal assignment deeds, each stage must comply with the lease terms and the law. At Stretton Solicitors, we provide expert legal guidance to ensure your lease assignment is completed efficiently, legally, and with full protection of your interests.

In legal terms, a lease assignment is the transfer of a tenant’s existing interest in a lease to another party. Unlike a subletting arrangement, where the original tenant retains some legal responsibility, an assignment fully passes on lease obligations to the new tenant (the assignee). However, many commercial leases contain detailed clauses regulating assignments — including requiring landlord consent, providing financial references, or demanding personal guarantees. Failure to comply with these terms can result in a breach of lease, rejection of the assignment, or future liability for the outgoing tenant. It is therefore vital to obtain legal advice before proceeding with an assignment.

For tenants, assigning a lease can be a strategic move — perhaps due to relocating, downsizing, or selling a business. However, it’s essential to confirm whether the lease allows for assignment and under what conditions. You may be required to provide an Authorised Guarantee Agreement (AGA), meaning you remain liable if the new tenant defaults. You’ll also need to ensure the assignee is financially sound and capable of meeting lease obligations. Our solicitors help tenants navigate these complexities, negotiate favourable terms, and ensure compliance with all lease conditions and statutory requirements.

From a landlord’s perspective, approving a lease assignment requires balancing risk with commercial interests. A poorly chosen assignee can increase the risk of rent arrears, property damage, or future disputes. As a landlord, you are entitled to request financial checks, references, and security before giving consent — but refusal must be reasonable and legally justified. Our team supports landlords in reviewing proposed assignments, drafting formal licence to assign documents, and ensuring that any conditions imposed are enforceable and compliant with the Landlord and Tenant Act 1954 or relevant lease provisions.

At Stretton Solicitors, we act on behalf of both landlords and tenants across the UK in all aspects of lease assignment. Our services include reviewing lease terms, obtaining necessary consents, preparing or scrutinising Deeds of Assignment and Licences to Assign, and guiding clients through the negotiation and registration process. We also provide strategic advice on the tax implications, stamp duty, and registration requirements at HM Land Registry. Whether you’re assigning, receiving, or approving a lease, our team ensures your interests are protected from start to finish with clear, practical legal advice.

If you’re considering assigning a lease — or you’ve been approached with a request to approve one — don’t take chances with your legal and financial security. Stretton Solicitors has the experience and expertise to ensure a smooth, compliant process tailored to your specific lease and business needs. Contact our commercial property team today to schedule a consultation and receive clear, expert advice on your lease assignment.