Assignment of a Lease

There are several reasons why you might want to exit your commercial lease early:

Changing Needs:
Perhaps your current premises no longer suit the needs of your growing business.

Financial Difficulties:
If your business faces financial challenges, you may need more favourable lease terms.

Options for Exiting a Lease Early – Common options include:

Assignment of a Lease:
Passing the lease onto another business.

Terminating the Lease:
You may be able to terminate the lease if it includes a break clause.

Subletting:
Adopting the role of landlord yourself.

Assignor and Assignee:
The tenant who transfers the lease is the assignor, and the assignee becomes the new tenant.

Landlord Consent:
Your landlord’s consent is usually required for the assignment. Whilst they typically cannot unreasonably withhold consent, they can assess whether or not the new tenant can meet the original lease terms.

Restrictions:
Your lease likely specifies restrictions on when and if you can assign the lease. For example, assignments may be prohibited if the lease is ending soon.