What does 'License to Assign' mean when buying a property?

 

licence to assign a lease

The tenant needs to transfer or assign to another business the rest of the term of years left on the lease, otherwise he’ll have to pay the rent for another six years. The tenant needs permission to assign the lease and this is given by way of a Licence to assign signed by the landlord, the out-going tenant and the in-coming tenant. This Licence to Assign should be used where the tenant wishes to assign (i.e. sell) the lease to a new tenant and, under the terms of the lease, the landlord’s consent is required. The Licence includes covenants by the tenant and assignee relating to payment of costs, registration at the Land Registry and performance of the covenants in the. Lease or Licence – do you know the difference? The most common ways to occupy a property are by a tenancy at will, licence, or lease. It is important that tenants, as well as landlords, know the difference between these types of occupation and are able to choose the most suitable for their requirements.


Licence to Assign a Lease Template - Legalo, U.K.


If you are a landlord of a licence to assign a lease property and your tenant wants to assign, or transfer their obligations under the lease to another commercial tenant, use this licence to assign to formally give them your consent to do so. This document contains all the usual provisions, including an optional requirement that the tenant will guarantee the rent and sums due under the lease, a time limit for completion of the lease assignment and the landlord's registration fee.

A licence to assign is an agreement between a landlord and a tenant where the tenant wants to assign or transfer their obligations under a lease to another party known as the assignee.

If the lease absolutely prohibits assignment, then the landlord can refuse consent without giving a reason. Refusal is likely to be justified only if the assignee:. If the date is known, the licence will include the date the tenant first made a request to the landlord for its consent to the assignment. If no date is known, the licence will just state that a request was made. The landlord can set a time limit for completion of the assignment and is entitled to insist that the assignment takes place within a reasonable period after the date of references of the assignee were provided.

If the assignment has not been completed within the agreed time period, the tenant will no longer have permission to assign the lease and the tenant will need to re-apply for permission. Members that make a Licence to assign sometimes need additional documents.

You licence to assign a lease be interested in:. Find trusted documents for hundreds of purposes. Create as many legal documents as you want, ask legal questions, and get advice from On Call Lawyers, licence to assign a lease. It's easy to cancel at any time. Your documents are stored securely online so you can access them from any device when you need to.

Our documents are created and reviewed by lawyers and legal professionals, so you can be confident when creating your next contract. Dashboard Make a document Ask a lawyer Get guidance Home. Profile information Account settings, licence to assign a lease. Make documents Ask a lawyer Get guidance About us. When should I use a licence to assign?

Use this licence: when your tenant has approached you for consent to assign the lease of a commercial property to another business when the original lease includes a clause preventing the tenant from assigning without your consent when you have seen the assignee's financial accounts and they are in a position to pay the rent and other sums due under the lease when the assignee will use the property for a purpose allowed under the original lease.

What's included in a licence licence to assign a lease assign? What's a licence to assign? Why do I need a licence to assign? What happens if the lease doesn't allow assignments? Refusal is likely to be justified only if the assignee: 1 cannot show that it has the financial strength to pay the rent and other sums under the lease or to meet the cost of repairs and other tenant obligations; or 2 intends to use the property for a purpose not allowed by the lease e.

In what form must the tenant's application be? Do you know the date when the request to assign the lease was made? How long will the licence last before it expires? What is the registration amount? Further advice. Ask a lawyer for: original leases that do not allow the tenant to assign an assignee that you do not agree has the ability to pay the rent under the lease an assignee whose use of the property is different to the use allowed under the original lease.

Sample Licence to assign, licence to assign a lease. View sample. Related Documents Members that make a Licence to assign sometimes need additional documents. You might be interested in: Licence to sublet. Related Documents. Licence to sublet. All Legal Documents. Easy legal documents Find trusted documents for hundreds of purposes. Try Rocket Lawyer free licence to assign a lease 7 days Create as many legal documents as you want, ask legal questions, and get advice from On Call Lawyers.

Access your documents. Anywhere Your documents are stored securely online so you can access them from any device when you need to. Legally reviewed Our documents licence to assign a lease created and reviewed by lawyers and legal professionals, licence to assign a lease, so you can be confident when creating your next contract. Sample Licence to assign Answer a few simple questions to make your Licence to assign in minutes Make document.

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Lease or Licence – do you know the difference? | Blaser Mills LLP

 

licence to assign a lease

 

Create a licence to assign if you are the landlord of a commercial property and your tenant wants to assign to another business with step-by-step guidance from . This Licence to Assign should be used where the tenant wishes to assign (i.e. sell) the lease to a new tenant and, under the terms of the lease, the landlord’s consent is required. The Licence includes covenants by the tenant and assignee relating to payment of costs, registration at the Land Registry and performance of the covenants in the. Lease or Licence – do you know the difference? The most common ways to occupy a property are by a tenancy at will, licence, or lease. It is important that tenants, as well as landlords, know the difference between these types of occupation and are able to choose the most suitable for their requirements.