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Assignment of Tenancy

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The Assignment of Tenancy is a legal process that allows a tenant to transfer their tenancy rights and responsibilities to another individual. This process is particularly useful in various situations, such as when a tenant needs to leave a property before the end of their tenancy agreement.

 
 
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There are several scenarios where an Assignment of Tenancy may be appropriate, for example, where a tenant must move out before the end of the tenancy they can assign their tenancy to someone else, ensuring it continues without disruption. Also, in a shared tenancy, one tenant may wish to leave while the others prefer to remain. An assignment allows the departing tenant to transfer their interest in the property to a new tenant.

Assigning a tenancy is not merely a casual agreement it involves several key steps:

  • The transfer of tenancy must be formalised through a Deed of Assignment. This legal document needs to be signed by the landlord, the outgoing tenant, the incoming tenant, and any remaining tenants, with an independent witness present.
  • The new tenant inherits all the rights and responsibilities under the original tenancy agreement. This includes paying rent, adhering to property rules, and maintaining the property as stipulated in the lease.
  • The landlord plays a crucial role in the assignment process as the landlord’s consent is required before an assignment can take place. A landlord may refuse consent if they believe the new tenant does not meet the financial or other criteria necessary to uphold the tenancy agreement.

Both the outgoing and incoming tenants should carefully consider the implications of an assignment:

  • Loss of Rights: Once the assignment is completed, the outgoing tenant forfeits all legal rights to the tenancy and cannot reclaim it in the future.
  • Responsibility for Arrears: Any rent arrears that existed before the assignment remains the responsibility of the outgoing tenant unless there is an explicit agreement to the contrary.

This  Assignment of Tenancy is in Microsoft Word format, written in plain English, easy to use and edit. It is a valuable option for tenants who need to exit a tenancy agreement before the end of the term.

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