An assignment of lease is also known as a transfer of lease.
A lease is assigned in the following circumstances typically when a tenant:
- sells a business and the lease needs to be transferred to the incoming party (known as the transferee, assignee and business purchaser); or
- for some other reason, the tenant wants to move on and has another party who has agreed in principle to take over the lease.
While a lease is often assigned precisely on the same terms enjoyed by the outgoing tenant, there are often variations that come with the assignment. For instance, the incoming tenant may have negotiated options for further terms with the landlord. This is quite common. Any changes to the lease requires special consideration for all concerned.
The outgoing tenant also needs to get sound legal advice as there is a very heavy onus on the outgoing tenant to absolve themselves any guarantors of any future liability.
We regularly provide legal advice to landlords, outgoing tenants and incoming tenants in relation to an assignment / transfer of lease. We also deal with any requirement for third party consent, where applicable, such as mortgagee consent.
To discuss, call us now on 1300 907 335 or simply complete the enquiry form on this page and we will get back to you promptly.