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A Licence to Assign a Lease is where the landlord gives consent to its tenant to sell or transfer the remaining term of the lease to another party called the “assignee”, who will take over as the new tenant for the remainder of the term of the original lease. The new tenant then becomes primarily responsible for paying the rent to the end of the term.
This Licence to Assign an Old Lease is a licence from the landlord giving consent to the tenant to assign an OLD lease under the Landlord and Tenant (Covenants) Act 1995. An “new” lease is one where date of the lease is on or after 1 January 1996, whereas, an “old” lease is one where the date of the lease is before 1 January 1996.
A Licence to Assign a Lease is different from sub-letting where the existing tenant can be held responsible for any default on the original lease, even though a new tenant is in place. Please use this Licence to Assign a Lease if you are a landlord and want to grant formal written permission to assign a lease from one tenant to another. It can be used regardless of whether the lease is a commercial one or is for residential property.
This document is drafted as a deed to avoid any argument about whether adequate consideration has been given. The licence may constitute a deed of variation in which case it may be liable for SDLT. This is only likely to be the case if there is a variation of the rent.
This Licence to Assign an Old Lease is in Microsoft Word format, written in plain English easy to use and edit.
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