Assigning A Lease

Assigning A Lease-15
Most commercial leases are fairly long term contracts, with most being 5-10 years in length, possibly with break clauses.It is common for businesses to outgrow premises or to want to move and in such situations, assignment or sale of the lease is often the solution.Subletting occurs when a tenant permits another party to lease the rental property that the tenant has leased from the landlord.

If a tenant assigns a dwelling to an existing sub-tenant, the Part 4 tenancy will continue to exist in favour of the new assignee for the remaining period of the original Part 4 tenancy and the assignee becomes the tenant of the Landlord.

Assignment can only take place with the consent of the landlord.

Where a landlord refuses an assignment of a fixed term tenancy, a tenant can serve a notice of termination on the landlord.

Tenants of Approved Housing Bodies are not permitted to assign or sublet their tenancy.

If you are unable to sublet or assign your apartment, you are still responsible for paying rent for the duration of the lease, even if you are no longer residing in the apartment.

The landlord can take legal action against you if you fail to pay the monthly rent until the end of the lease, and you could be held responsible for not only the outstanding rent, but also any legal fees the landlord may have incurred.Assignment is where a tenant transfers their entire interest in a tenancy to a third party.The original tenant then ceases to have any interest or involvement in the tenancy and the assignee becomes the tenant who now deals directly with the landlord and is responsible for the tenancy.Where a landlord refuses the tenant the option of subletting, the tenant can serve a notice of termination to end the tenancy if they so wish.Subletting is not available in Approved Housing Body tenancies.What can complicate lease transfer agreements is the necessity to have the Landlord’s consent and that it is usual for the Landlord to insist on the outgoing tenant to agree to guarantee the new tenant’s obligations.Another area which can be problematic is payment of legal costs.Outside of extraordinary circumstances (please see Rights and obligations), the only legal way to get out of a lease is to sublet or transfer your lease.In certain cases, such as Joint tenancy, there may be restrictions on the right to sublet or transfer the lease.Lease transfer releases the original tenant from all rights and responsibilities for the apartment, as of the date of the assignment.When a lease is assigned, the new tenant assumes all the legal rights and responsibilities for the apartment and can take action against the landlord directly.

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