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What is a Licence to Assign?
A Licence to Assign is an agreement between a commercial landlord and a tenant used when the tenant wants permission to assign or transfer their obligations under a lease to another party (known as the ‘assignee’). Landlords should use Licences to Assign to formally consent to commercial tenants transferring their commercial lease obligations to another party.
For use in England and Wales only.
When should I use a Licence to Assign?
- your tenant has approached you for consent to assign the lease of a commercial property to another business
- the original lease agreement prevents the tenant from assigning without your consent
- 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
- the assignee will use the property for a purpose allowed under the original lease