Is a business lease transferable?

Is a business lease transferable?

Individuals may take new jobs in new cities, and companies may go out of business or sell their enterprise to a third party. Whatever the reason, tenants can transfer their lease interests to new parties by completing an assignment of the lease.

Can a lessor assign a lease?

Most often, the lease won’t permit assignment without the landlord’s approval, but leases often state that the landlord cannot unreasonably withhold consent. As long as you produce a tenant who’s shown a history of payment under prior leases and has been a model tenant, a landlord should consent to assignment.

Can lease property be sold?

A leasehold property can be sold to any third party only after obtaining a no-objection certificate (NOC) from the authorities concerned. Such properties get transferred to lessors after the lease period is over, if a renewal of the lease is not done.

Can you grant a lease to yourself?

Assuming you own the freehold of the building in your own name, you cannot grant long leases to yourself. The only way of having separate leases now would be for you to set up a company (with yourself as sole shareholder) and for you then to transfer the freehold to it.

How does a lease come to an end?

A lease will automatically come to an end if the tenant moves out on the last day of the lease. If you have security and you stay on then the lease is continued on the same terms until either party serves a three month statutory notice, and the rent is payable until the end of the notice period.

Can you assign a lease without landlord permission?

Does the Landlord have to give permission for this to be the case? The right to assign the lease is generally subject to permission of the landlord being granted. However, this permission cannot be unreasonably withheld.

What does transfer a lease mean?

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.

Does a lease supercede a sale?

A lease gives a tenant an interest in a property. When the owner sells a property, the lease moves with it and the sale has no effect on the lease.