Licence to Assign

When a commercial tenant wishes to transfer (or assign) their lease to a new party, they usually require the landlord’s formal consent — known as a Licence to Assign. This legal document ensures that the lease can be transferred while protecting the landlord’s interests and maintaining the integrity of the tenancy arrangement. At Stretton Solicitors, we provide clear, practical legal advice to both landlords and tenants navigating the Licence to Assign process, helping to ensure the assignment is smooth, compliant, and in your best interest.

A Licence to Assign is not just a formality — it’s a legally binding agreement that can impact both parties long after the assignment has taken place. For landlords, it’s an opportunity to vet the incoming tenant and secure guarantees or rent deposits to mitigate risk. For tenants, it’s a critical step in exiting their lease obligations lawfully and without future liability. Failing to obtain a Licence to Assign where one is required can constitute a breach of lease and potentially lead to forfeiture. That’s why legal guidance is crucial from the outset.

At Stretton Solicitors, we act swiftly and efficiently on Licence to Assign matters. For tenants, we assist in reviewing the lease to identify assignment conditions, negotiating favourable terms, and preparing the application to the landlord. For landlords, we help review the financial standing of the proposed assignee, draft robust licence terms, and advise on any conditions such as authorised guarantee agreements (AGAs). Our goal is to protect your interests while facilitating a timely and lawful transfer.

Timing and communication are critical. Many leases specify tight timeframes for landlords to consider and respond to a tenant’s request for assignment. Our team ensures these deadlines are met and that all required documentation — including undertakings for legal costs, financial references, and business plans — is gathered and presented in accordance with the lease terms and legal requirements. We liaise with all parties involved to keep the process on track and avoid unnecessary delays.

The process of assigning a commercial lease can be more complex than anticipated, especially when consent is withheld or conditions are disputed. If disagreements arise, such as unreasonable refusal of consent by the landlord, our solicitors can advise on your rights and pursue appropriate legal remedies, including applications to the court. Equally, we ensure that landlords are within their rights and obligations under the Landlord and Tenant Act 1988, which governs the duty to give consent reasonably and promptly.

Whether you are a landlord reviewing an assignment request or a tenant planning to transfer your lease, professional legal advice is key to avoiding risk and ensuring a smooth transition. At Stretton Solicitors, our commercial property experts are here to guide you through every step of the Licence to Assign process with clarity and precision. Get in touch with our team today for a consultation and practical legal support you can rely on.