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What does it mean for a lease to be assigned?

What does it mean for a lease to be assigned?

An assignment of a lease is a complete transfer of the right to be the tenant under the lease. This means that the tenant remains liable for monthly rent under the original lease, while collecting rent from the subtenant under the sublease, which may be more, less or the same as the rent due under the main lease.

How do I assign a lease to someone else?

Answer. Under a typical lease assignment, you transfer all of your space to someone else for the entire remaining term of the lease, and the new tenant pays rent directly to the landlord. If the new tenant fails to pay rent or damages the rental, your landlord could look to you for compensation.

Who pays for the lease transfer?

Who pays for preparing a lease? The Retail Leases Act 1994 (the Act) states that the landlord pays the full cost of preparing the lease, including the mortgagee consent fee. If the landlord or agent asks the tenant to pay the legal costs, the tenant should write to them and refer to sections 3 and 14 of the Act.

Can a freeholder refuse consent for me to assign my lease further?

Most leases contain restrictions on assignments as the Landlord will want to ensure that the incoming tenant/assignee is able to pay the rents and comply with the tenant covenants in the lease. The landlord can only refuse to grant consent if: it is done within a reasonable time of the tenant’s application.

What happens when you assign a lease to another person?

If a tenant wants to move out before the lease expires and does not plan to return, he or she can assign the lease to another person, who will then become the tenant. Assigning a lease transfers all the tenant’s rights and obligations to another person.

Can a landlord refuse to assign a lease?

This can be done using a Landlord’s Consent to Lease Assignment form. Unfortunately, not obtaining consent before assigning your lease could result in a negative outcome, including the assigned tenant (who is called the assignee) getting evicted from the property.

Is the assignment of a lease the same as subletting?

Assigning a lease is not the same thing as subletting, although the two terms are often confused. In the case of an assignment of lease, there is a direct relationship established between the new tenant and the landlord, as the landlord collects rent directly from the new tenant after the latter’s assumption…

Do you have to give consent to a lease assignment?

Although a landlord is not required to consent to a lease assignment, in some cases your lease will state that a landlord’s consent will not be “unreasonably” withheld. This is more common in commercial leases.