Why Do I Need To Have My Transfer Of Lease Reviewed?

Let’s say you’re selling your business and were fortunate enough to quickly find an eager buyer. As part of the process, you offer to transfer your existing lease to the buyer to save them the hassle of negotiating a new lease. 

The buyer agrees, and you are now transferring your obligations under your existing lease to the buyer, who will now be occupying the premises. 

This is known as a Transfer of Lease (or an Assignment of Lease). 

What Is A Transfer of Lease?

A Transfer of Lease is the act of transferring your responsibilities under a lease to another party. It’s the same lease, but a new party will step into your shoes as the lessee (tenant). 

In the scenario we described earlier, this new party would be the buyer of your business. However, a transfer of lease isn’t only for business sales. It can also occur when you wish to exit your lease early, and another party is willing to take over the existing lease terms with the landlord. 

It’s crucial to have a properly drafted Assignment of Lease to ensure that all your obligations are transferred correctly. The last thing you want is to remain liable for a lease you’ve left behind. 

What Terms Should It Include?

The Assignment of Lease should include several essential terms about the transfer of responsibilities, such as:

• Landlord’s consent
• The assignment date
• The tenant’s agreement to transfer their entire interest in the lease to the assignee (the new tenant)
• The new tenant’s agreement to assume these responsibilities (which could encompass payment and maintenance obligations)

Why Do I Need To Have It Reviewed?

When dealing with any legal agreement, having the correct terms is vital to mitigate risks. For an Assignment of Lease, it’s imperative that all the existing duties are passed on to the new tenant, to prevent the original tenant from retaining obligations for a lease they no longer hold. 

Enlisting a lawyer’s assistance is always a wise decision. They can verify that you’ve met all the necessary conditions (such as securing the landlord’s consent) and ensure that you’re completely disengaged from the lease once you’ve transferred it. 

Where Can I Get A Lawyer To Help Me?

Obtaining legal support is straightforward with Sprintlaw. We offer a Transfer of Lease Review package which includes:

• A review of the Assignment of Lease and any associated documentation
• Phone consultations with a Sprintlaw lawyer who can advise you on the legal aspects specific to your situation 

Next Steps

Reviewing a Transfer of Lease can be complex, as you need to ensure all your legal bases are covered. Sprintlaw is here to assist – our team of expert lawyers can address your legal inquiries. 

If you would like a consultation to discuss your next steps, you can contact us at 0800 002 184 or [email protected] for a free, no-obligation chat.

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