| |
Assignment
An assignment of a lease takes place when the tenant (assignor)
transfers/sells to another person (assignee) their entire
interest in the property for the unexpired residue of the
lease.Section 52 (1) of the Law of Property Act 1925 requires
that for the legal estate to pass to the assignee, then the
assignment must be by Deed.Under the doctrine of "privity
of contract", the original tenant remains liable to perform
all the covenants in a lease throughout the term.
Thus, if the lease is assigned to a third party, in the event
that the new tenant defaults, the original tenant remains
liable for the covenants contained therein.In some cases therefore,
if an assignee is found to be in breach of contract, the landlord
is able to look to the assignor to seek redress; even though
the original tenant has no control over the subsequent occupiers
business.
The Landlord and Tenant (Covenants) Act 1995 sought to address
this issue and relieve the original tenant from such liability
upon assignment.
Modern leases granted on or after 1st January 1996 usually
incorporate this change in legislation.
 |
Before you go office
hunting, make sure you have defined your space needs and service
priorities. Global Office Search can help you determine your
exact space requirements, locate the commercial properties that
best fit and help you negotiate favourable terms. |
|
|
|
Global Office Search
Global Office Search
|
| Global Office Search can provide
in-depth knowledge. |
|
|
| Insight on the potential
for buying, selling or leasing offices and commercial
property and land in London and throughout the UK. |
|
|
| We specialise in offices, with or without
warehouse, distribution or industrial space, and we represent
many owners, occupiers, developers and investors across the
country. |
|
| As part of your office relocation
process, we offer an informal meeting to assess the realistic
options of selling or letting existing commercial property
or finding more suitable alternatives. |
|
|
| We make our recommendations
but you decide what happens next. |
|
|
|
|
|
