How Much Does It Cost to Assign a Lease?

In the UK, assigning a commercial lease typically costs between £1,000 and £5,000. This includes assignment fees, legal fees, and landlord consent charges.

These costs may vary depending on the property location, lease terms, and specific landlord requirements.

Our commercial lease solicitors charge a fixed fee between £1,000–£1,500 plus VAT for full legal services related to the assignment of a commercial lease.

Need assistance with assigning a commercial lease? Contact our fixed-fee commercial lease solicitors in London at 020 3417 3700 or fill in the enquiry form.

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What are the costs involved in assigning a commercial lease?

Assigning a commercial lease in the UK involves several costs for both the outgoing and incoming tenants. Key costs include:

1. Legal Fees
2. Landlord's Costs
3. Meeting Lease Obligations
4. Surveyor's Fees
5. Premium
6. Energy Performance Certificate (EPC)
7. Other Costs for the Assignee

1. Legal Fees

Legal fees are a primary cost in assigning a commercial lease. A solicitor reviews the lease, drafts documents, and ensures legal requirements are met. Both the outgoing and incoming tenants usually pay their own legal fees.

Our commercial lease solicitors charge a fixed fee between £1,000 to £1,500 plus VAT, for comprehensive legal services for assigning a commercial lease.

2. Landlord's Costs

Landlords charge legal and administrative fees for processing the assignment. They may also review the assignee's financial status.

These costs are usually covered by the assignee, however the assignor may agree to split the landlord's costs, depending on the negotiation scope.

3. Meeting Lease Obligations

Before the landlord agrees to the assignment, the assignor must fulfil all lease obligations. This includes confirming rent is up to date, addressing any outstanding repairs, or dealing with dilapidations. The cost varies based on the property condition and landlord requirements.

For example, if necessary, repairs or maintenance are required, the assignor may need to cover the costs before consent is granted.

4. Surveyor's Fees

If a surveyor is hired to check the property, it will cost more. The price depends on the property size and the work needed. This is usually for big or complicated commercial properties.

5. Premium

If the rent is higher than the market rate, the new tenant might pay a premium. This is an upfront payment for taking over the lease. It's common when the lease has a good deal, like a low rent.

The premium's amount changes with the market and lease length. It's key to think about this payment in the bigger financial picture.

6. Energy Performance Certificate (EPC)

If the EPC is out of date, the outgoing tenant might need a new one. This is to meet legal rules. The cost of a new EPC is usually the outgoing tenant's but can be discussed.

7. Other Costs for the Assignee

An incoming tenant may also need to consider Stamp Duty Land Tax (SDLT) if a premium is paid, security deposits, advance rent, or Land Registry fees.

Both parties need to budget for these costs to ensure smooth financial planning for the assignment.

How long does the lease assignment process usually take?

A commercial lease assignment usually takes a few weeks to several months, depending on the lease's complexity and the landlord's consent and responsiveness.

Delays can happen if the landlord is slow to grant consent or requires repairs or lease obligations to be met beforehand. To avoid delays, tenants should contact their landlords well in advance and ensure they are compliant with all lease terms.

What is the process of assigning a lease in the UK?

The process of assigning a lease in the UK typically involves the following steps:

1. Review the Lease Agreement
2. Obtain Landlord's Consent
3. Negotiate Terms
4. Deed of Assignment
5. Land Registry Notification
6. Completion and Handover

1. Review the Lease Agreement

The assignor (current tenant) should review the existing lease agreement to understand the terms and conditions associated with the lease assignment. It is important to check for any clauses or restrictions on assignments and seek legal advice.

2. Obtain Landlord's Consent

The assignor must seek the landlord's consent to assign the lease. This usually involves making a formal request in writing by providing details of the proposed assignee and their financial standing. The landlord may request additional information or documents as part of their assessment process.

3. Negotiate Terms

The assignor and assignee negotiate the terms of the assignment, including any financial arrangements and responsibilities. This may include agreeing on rent apportionment, security deposits, and any other relevant terms. Legal professionals can assist in ensuring that the negotiation process is fair and comprehensive.

4. Deed of Assignment

Once the terms are agreed upon, a Deed of Assignment is drafted. This document outlines the specifics of the lease assignment, including the names & details of the parties involved, the property address, the assignment effective date, and any additional terms or conditions. The Deed of Assignment must be signed by both the assignor and assignee in the presence of witnesses.

5. Land Registry Notification

After the Deed of Assignment is signed, it is typically submitted to the Land Registry. This ensures that the assignment is officially recorded and that the assignee's interest in the property is registered.

6. Completion and Handover

Upon completion of the assignment, the assignee assumes all rights and obligations under the lease. This includes paying rent, fulfilling maintenance responsibilities, and adhering to any other lease terms. The assignor is typically released from future liabilities, subject to the terms negotiated with the landlord.

Throughout the process, it is advisable for both parties to seek legal advice to ensure that their interests are protected and that all necessary legal requirements are met. Additionally, consulting with the landlord or a property professional can help navigate any specific requirements or conditions set by the landlord regarding lease assignments.

Do you need a solicitor to assign a lease?

It is crucial to consult with legal professionals, such as solicitors or commercial property specialists when dealing with lease assignments in the UK. They can provide guidance and ensure that the process is conducted correctly, protecting the interests of all parties involved.

How much do solicitors charge for the assignment of the lease?

At Wembley Solicitors, we offer affordable legal services regarding the assignment of a commercial lease on a fixed fee basis with no hidden costs or nasty financial surprises.

Our commercial property solicitors in London charge a fixed fee between £1000-£1500 (Plus VAT) for complete services regarding the assignment of a lease.

Why choose Wembley Solicitors for the assignment of a commercial lease?

• We have extensive knowledge and experience in drafting commercial leases and assignments of leases.
• Our commercial lease solicitors provide legal services on a fixed fee basis without blowing your budget and with no hidden costs.
• We provide professional legal advice and assistance at every step and keep you updated as your matter progresses.
• We provide legal services remotely throughout England and Wales. You do not need to physically attend our office.
• We have a team of qualified and accredited solicitors.
• We are authorised and regulated by the Solicitors Regulation Authority (SRA), so you know you are in safe hands.

We provide legal advice and services to both landlords and tenants. Call our property solicitor today at 020 3417 3700 for more information about the services.

Contact commercial lease solicitors

For guidance on any aspect of lease assignment, please call our expert commercial property solicitors at 0203 417 3700 or fill out our online enquiry form.