Commercial lease change

Commercial lease change of ownership in most cases, is transferrable with the consent of the landlord. However, some leases contain an absolute bar on assignment or underletting so it is important to review the relevant provisions within the lease, which will also detail the requirements of the landlord on any assignment or underletting. In this case, the landlord may still be prepared to give consent but is entitled to refuse it.

Applying for your Landlords consent should be made in the way of a formal agreement or document, but even this isn’t always as simple as it sounds. When applying for consent to transfer or assign it must be served in accordance with specific clauses in the lease regarding service of notices or in accordance with the Landlord and Tenant Act 1927 or it may be ignored by the Landlord or agent.

It may be wise to seek out the advice to seek advice or guidance from a solicitor to ensure that everything has been done correctly and even to look through your lease to ensure you’re covered in case of future disputes or arguments.

Commercial lease change of ownership is when the tenant will be liable for the Landlords costs whether or not the application is approved (although it may be possible to get the assignee to pay if the Landlord’s consent is given).

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