Question: How can I transfer a commercial property under an existing lease to a new tenant?Answer:
The easiest way to transfer a commercial property and is to assign the lease to a new tenant. ‘Assignment’ of a lease means the transferal of the leasehold interest in a property – in other words, you are transferring the interest you gained when you took on the lease and are giving it over to another. The new tenant assumes the rights and obligations of the old tenant such as rent, outgoings, land tax, repairs etc. Assignment of any lease must have the consent of the landlord, which shouldn’t be hard to get as they are not allowed to refuse an assignment unreasonably. Also, a tenant who assigns can still be held responsible for losses that the landlord suffers because of the actions of the new tenant.
To transfer a commercial property and complete an assignment of a lease, first check the assignment clause in your commercial lease agreement. Then, gain the landlord’s consent, and fill out the relevant forms to complete the transfer and registration of the title on that property. A leasing lawyer will be able to help you with this process.