If you are a landlord or a tenant of a commercial property, the likelihood is that you will come across a licence to assign at one point or another – if you haven’t already. This legal document is a crucial aspect when it comes to transferring a lease from one party to another. In this blog, I’ll explain what it is, how it works in practice, and how we can assist.

What is a Licence to Assign?

A licence to assign is a formal consent, given by a landlord, allowing a current tenant (the assignor) to transfer their leasehold interest to another party (the assignee). This step is necessary because most commercial leases contain clauses that restrict the tenant’s ability to assign their lease without the landlord’s prior written consent.

Why is it Important?

The licence to assign serves to protect the landlord’s interests by ensuring that the new tenant is financially stable and capable of fulfilling the lease obligations. It also provides an opportunity for the landlord to impose conditions or adjustments to the lease terms if needed, ensuring the property remains in compliant and capable hands. Simply, it gives the landlord another layer of control on who occupies their property.

The Process

The process of obtaining a licence to assign typically involves the following steps:

  • Request for consent: The current tenant must formally request permission from the landlord to assign the lease.

  • Landlord’s consideration: The landlord will consider the request, often requiring financial and personal references from the prospective tenant.

  • Drafting the licence: Once the landlord agrees, the licence to assign is drafted, detailing any conditions or covenants that must be adhered to.

  • Execution: The final document is signed by all parties, officially granting the new tenant the right to take over the lease.

How We Can Assist

Navigating the intricacies of lease assignments can be complex and time-consuming. Our experienced team of solicitors is here to assist every step of the way. Whether you are a landlord looking to safeguard your property or a tenant seeking to assign your lease, Farleys provides expert legal guidance, tailored to your specific needs.

Contact us today to learn more about how we can help you with your licence to assign and other commercial property-related legal matters. Call 0845 287 0939, get in touch by email, or use the online chat below.