Can a Landlord Refuse to Assign a Commercial Lease?
Under the Landlord and Tenant Act 1927, landlords are not allowed to unreasonably refuse to give consent for lease assignments unless permitted in the lease.
If you’re facing issues with a commercial lease assignment, call our commercial lease solicitors at 0203 959 7755 to ensure your interests are protected.
Table of Contents
- What is a commercial lease assignment?
- What steps are involved in assigning a commercial lease?
- How to request and obtain landlord consent for lease assignment?
- Can a landlord refuse to assign a commercial lease?
- When can a landlord refuse consent?
- When is a refusal considered unreasonable?
- What information does the landlord need for approval?
- What can a tenant do if a landlord refuses to assign a lease?
- What should tenants do to avoid delays or refusals?
- Do you need a solicitor to assign a lease?
- How much do solicitors charge for the assignment of a commercial lease?
- How to contact our commercial lease solicitors?
What is a commercial lease assignment?
Commercial Lease assignment is a legal process of transferring a commercial property lease from an existing tenant (assignor) to a new tenant (assignee).
The assignee takes over the lease under the same terms and conditions, while the original tenant is typically released from any further obligations. However, the landlord must approve the transfer for it to proceed.
What steps are involved in assigning a commercial lease?
The process for assigning a commercial lease typically involves the following steps:
- Step 1: Review the Lease Agreement
- Step 2: Find a Suitable Assignee
- Step 3: Obtain the Landlord's Consent
- Step 4: Draft the Assignment Agreement
- Step 5: Execute a Deed of Assignment
- Step 6: Register the Assignment (if applicable)
How to request and obtain landlord consent for lease assignment?
Most leases require the landlord's consent for a transfer. Write a formal letter to the landlord requesting consent for the lease assignment. You should include all the supporting documents, explain why the assignment is necessary, and how the assignee meets the lease terms.
The existing tenant (assignor) must get written consent from the landlord to assign the lease. Failure to do so can result in legal action being taken against you.
You must review your existing lease agreement for any clauses relating to lease assignment and follow the process outlined by your landlord.
Can a landlord refuse to assign a commercial lease?
A landlord might have reasons not to agree to an assignment. But, Section 19(1) of the Landlord and Tenant Act 1927 says they can't unreasonably say no.
The existing tenant (assignor) must review the clauses related to “assignment” or “transfer of lease” and follow the correct procedure.
When can a landlord refuse consent?
A landlord can only refuse for "reasonable" reasons. What's reasonable depends on the lease and the situation.
A landlord might refuse to assign a lease for several reasons:
- Inability of the new tenant (assignee) to meet financial obligations or not have enough money to pay the lease.
- Proposed use of the property conflicts with lease terms.
- Risk of reducing the property’s value or reputation.
- Current tenant's breach of lease terms.
- Insufficient information about the new tenant or assignment details.
The Landlord and Tenant Act 1927 prohibits landlords from unreasonably refusing consent for lease assignments unless explicitly permitted in the lease.
When is a refusal considered unreasonable?
A refusal is unfair if it's based on personal reasons, trying to get extra money, or without a good reason. For example:
- Refusing because of personal dislike.
- Trying to get extra money from the tenant.
- Not responding without a good reason.
If a landlord unfairly says no, the tenant can take legal action.
What information does the landlord need for approval?
Landlords want to know about the new tenant. They might ask for:
- Financial statements or proof of income.
- Details about the business and plans.
- References or guarantors (if needed).
What can a tenant do if a landlord refuses to assign a lease?
If the refusal is unfair, the tenant can:
- Talk more with the landlord to fix issues.
- Get legal advice to fight the decision.
- Go to court to say the refusal is unfair or to get compensation.
What should tenants do to avoid delays or refusals?
Here are a few tips for tenants to avoid delays or refusals in obtaining landlord consent for lease assignment:
- Review the lease to understand assignment clauses, processes, and conditions.
- Provide complete details about the proposed assignee, including financial statements, business information, and intended property use.
- Clearly explain the need for the assignment and the assignee's suitability.
- Fix any lease breaches, like rent arrears or maintenance issues, before requesting consent.
- Engage early with the landlord to allow time for questions and adjustments.
- Consult a commercial lease solicitor to ensure your request meets legal and lease requirements.
Do you need a solicitor to assign a lease?
The process of commercial lease assignment can be complex, and seeking professional legal advice from a specialist commercial lease solicitor is essential.
Commercial lease solicitors play a vital role in the lease assignment process, ensuring that all documentation is complete and legally compliant.
With years of experience in the field, we at Moeen & Co. Solicitors can provide the necessary guidance and support for a smooth lease assignment.
The benefits of choosing Moeen & Co. Solicitors
- Top-quality advice from highly experienced commercial lease solicitors.
- A proactive approach to finding cost-effective solutions for your business.
- A client-focused service tailored to your unique needs.
- Clear communication and transparency throughout the process.
- Our commercial lease solicitors provide legal services on a fixed fee basis without blowing your budget and with no hidden costs.
- We are authorised and regulated by the Solicitors Regulation Authority (SRA), so you know you are in safe hands.
By consulting Moeen & Co. Solicitors, you can rest assured that your lease assignment is in good hands. Call us today at 0203 959 7755 to discuss your lease assignment needs and schedule a consultation.
How much do solicitors charge for the assignment of a commercial lease?
Our lease solicitors in Hayes, London charge an affordable fixed fee between £1000-£1500 for our legal services regarding the assignment of the commercial lease.
By choosing our fixed fee services, you can have the peace of mind that there will be no hidden costs or surprises. We believe in transparency and making the lease assignment process as smooth as possible.
How to contact our commercial lease solicitors?
If you require assistance with assigning your lease, contact our commercial lease solicitors in London at 0203 959 7755 or complete our enquiry form.
There are several ways to contact our solicitors based in Hayes, London:
- Phone - Call us on 0203 959 7755
- Email us - info@moeenco.com
- Online - Fill in our online enquiry form
- Visit our office - Room 1, The Winning Box, 27-37 Station Road, Hayes UB3 4DX
We are located near Hayes and Harlington Station on Hayes High Street, in Hayes Town Centre.
Legal Disclaimer
The information provided is for general informational purposes only and should not be taken as legal advice. While we make every effort to ensure accuracy, the law may change, and the information may not reflect the most current legal developments. No warranty is given regarding the accuracy or completeness of the information, and we do not accept liability in such cases. We recommend consulting with a qualified lawyer at Moeen & Co. Solicitors before making any decisions based on the information provided on this website.