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Free Deed of Assignment Tenancy Agreement Sample Form and Template

A Deed of Assignment is a legal document that transfers the ownership rights and interests of a property or asset from one party, known as the assignor, to another party, known as the assignee. It is commonly used in real estate transactions but can also apply to other types of assets such as intellectual property rights, stocks, or contractual rights.

The Deed of Assignment serves as evidence of the transfer of ownership and provides a clear record of the transaction. It outlines the terms and conditions of the assignment, including the details of the parties involved, a description of the property or asset being assigned, and any applicable terms or conditions.

Key elements typically included in a Deed of Assignment are:

• Parties: The document identifies the assignor (current owner) and the assignee (new owner) involved in the transaction. It is essential to provide accurate and complete information about both parties.
• Description of the property or asset: The Deed of Assignment should include a detailed description of the property or asset being transferred. For real estate, this includes the physical address, boundaries, and any relevant identifying information. In the case of other assets, it may include specific details such as patent numbers or stock certificates.
• Consideration: Consideration refers to the value or payment exchanged in return for the assignment. It can be in the form of money, goods, services, or any other agreed-upon consideration. The Deed of Assignment should clearly state the consideration provided by the assignee to the assignor.
• Terms and conditions: This section outlines the specific terms and conditions of the assignment. It may include any restrictions, warranties, or obligations that the assignee must adhere to after the transfer of ownership. These terms are mutually agreed upon by both parties and are legally binding.
• Signatures and witnessing: To make the Deed of Assignment legally enforceable, it requires the signatures of both the assignor and the assignee. Additionally, it is common to have witnesses present during the signing of the document to validate its authenticity.

Once the Deed of Assignment is signed and executed, it becomes a legally binding agreement between the assignor and the assignee. It ensures that the assignee acquires the rightful ownership of the property or asset, and the assignor relinquishes their ownership rights.

It is important to note that the requirements and legal implications of a Deed of Assignment can vary depending on the jurisdiction. Consulting with legal professionals or experts in the relevant field is recommended to ensure compliance with local laws and regulations.

When Can A Contract Be Signed As A Deed?

Under certain circumstances, a contract can be signed as a deed, distinguishing it from a standard contract. This is typically the case when the parties involved agree that no consideration, or payment, is necessary for the agreement to be valid.

As a more formal document, a deed follows a specific execution process. It requires the presence of a witness during the signing and in some cases, the use of a seal to authenticate the deed.

Is it Possible to Reverse a Deed of Assignment?

Once a deed of assignment has been executed and dated, it remains legally binding and enforceable until specific actions are taken. These actions include varying the deed using a deed of variation, surrendering it using a deed of surrender, or selling the property involved. If you intend to make changes to the original deed, it is more common to surrender the entire deed and then create a new deed with the desired modifications.

Which document do I require, a deed of assignment or a deed of trust?

When it comes to transferring the beneficial interest in land or property from one party to another, a deed of assignment is typically utilized. This document focuses solely on the assignment of the beneficial interest. On the other hand, a deed of trust can serve the same purpose but includes additional clauses that outline procedures for selling the property, among other things.

For most married couples seeking to assign their beneficial interest in an investment property, a deed of assignment is suitable for their needs.

Download a Deed of Assignment Tenancy Agreement Template

If you like a custom, completely personalised assignment agreement, use the link below. It takes about 5 min to create and you will end up with an agreement, tailored to your specific property.

Download CUSTOM Assignment Agreement

Alternatively, if you just want to download a generic deed of assignment of tenancy template, use the link below.

Download GENERIC Deed of Assignment of Tenancy Agreement

All content on this form and other forms for landlords published by Property Division are provided “as is”, with no guarantees of completeness, accuracy or timeliness, and without representations, warranties or other contractual terms of any kind, express or implied. Property Division does not represent or warrant that this letter or other material supplied by Property Division will be accurate, current, uninterrupted, error-free or omission-free.

Can a landlord refuse to assign a lease in the UK?

In the United Kingdom, a landlord’s ability to refuse to assign a lease is governed by the terms of the lease agreement and relevant landlord and tenant laws. The Landlord and Tenant Act 1988 (as amended) provides certain protections and guidelines for both landlords and tenants regarding the assignment of leases.

Here are some key points to consider:

• Lease Agreement Terms: The terms of the lease agreement will typically outline the conditions and requirements for assigning the lease. Some leases may include provisions that require the tenant to obtain the landlord’s consent before assigning the lease.
• Reasonable Refusal: The Landlord and Tenant Act 1988 imposes certain restrictions on a landlord’s ability to unreasonably withhold consent to an assignment. Generally, the landlord’s refusal must be reasonable, and they cannot arbitrarily deny permission. Common reasons for refusal may include concerns about the financial stability of the proposed assignee or if the assignee’s intended use of the property violates the terms of the lease.
• Landlord’s Costs: The landlord may be entitled to recover reasonable costs incurred in considering the request for assignment. These costs should be outlined in the lease agreement.
• Procedure for Seeking Consent: The lease agreement may specify the procedure that the tenant must follow when seeking the landlord’s consent for an assignment. It is important for tenants to adhere to these procedures to ensure compliance with the terms of the lease.
• Landlord’s Remedies: If the landlord believes there are valid reasons to refuse consent, they may have remedies available under the lease agreement or applicable law. However, these reasons must typically be specified in the lease.

It’s important for both landlords and tenants to be aware of the specific terms of the lease agreement and to understand their rights and responsibilities under the Landlord and Tenant Act 1988. If disputes arise, seeking legal advice is recommended to ensure compliance with the law and the terms of the lease. Additionally, the laws and regulations may be subject to change, so staying informed about any updates is advisable.

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Deed of Assignment

Introduction.

Most of the time, when a tenant chooses to leave their property they will do so at the end of the fixed term of the tenancy and they will give you vacant possession of the property when they do.

However, sometimes one of your tenants will want to leave in the middle of a tenancy and the other remaining tenants will want to stay. In these circumstances if you do agree to allow them to leave the agreement, you can provide a new tenancy agreement that starts afresh, or you, the outgoing tenant, the remaining tenants and the replacement tenant can sign a deed of assignment. This will transfer the outgoing tenants interest in the property over to their replacement.

Deeds and signatures

As a deed this document must be signed by all parties but that signature must be witnessed by someone who is not a family member or a party to the agreement. The most appropriate way to do this is to have the witness be physically present in the room as the parties sign the deed.

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Assignment of Lease Explained

• December 1, 2023

Understanding the complexities surrounding the assignment of a lease is crucial for both tenants and landlords. Within the UK, various situations might compel a tenant to transfer their lease to another party. In this guide we will delve into the essentials, helping you understand every facet of a lease assignment.

What is an Assignment of Lease?

In the world of property management and real estate, the concept of an “assignment of lease” is fundamental. It involves a tenant, known as the assignor, transferring their entire legal interest in a property to another individual or entity, called the assignee. This process is common in both residential and commercial contexts and plays a significant role in maintaining the fluidity of property interests, especially in a dynamic market.

When a tenant signs a lease, they agree to specific commitments, including paying rent and maintaining the property, which are enforceable for a set period. However, various circumstances may prompt a tenant to vacate the property before the lease term expires. Herein lies the importance of the assignment of lease.

Through lease assignment, the original tenant can exit the property and pass on the responsibility to a third party, who then assumes the role of the tenant with all its incumbent responsibilities. It’s important to note that while the new tenant steps into the shoes of the original tenant, the lease terms remain unchanged.

For instance, if an individual rents a flat and later decides to move out before the lease’s expiration due to reasons such as relocating for a job or changing living situations, they may opt for an assignment of the lease. This strategy allows another person to take over the living space and adhere to the responsibilities under the original lease, ensuring that the flat does not remain unoccupied and the landlord continues to receive rent payments. This seamless transition can be especially beneficial in residential areas with high demand for housing, as it minimises financial instability for the landlord and provides immediate accommodation for those in need of a home.

Key Components of Lease Assignment

• Assignor and Assignee: The existing tenant (assignor) and the new tenant (assignee) are the primary parties in this agreement. Their willingness to transfer and assume the lease’s obligations, respectively, drives the assignment process.
• Landlord’s Role: While not a direct party to the assignment, the landlord plays a pivotal role. Most lease agreements stipulate that landlords must provide consent before any assignment takes place. This clause protects the landlord’s interests, ensuring the new tenant is reliable and meets the required standards.
• Legal Documentation: The process requires several legal documents, including the initial lease agreement and a deed of assignment. The latter must clearly articulate that all rights and responsibilities have been transferred to the new tenant. This precision prevents future disputes regarding the terms of the lease.
• Liabilities: The assignment of lease doesn’t inherently absolve the original tenant of responsibilities. Depending on the agreement’s terms, the assignor might remain liable if the assignee fails to fulfil the lease obligations. This potential continued liability underscores the importance of thorough assignee vetting.

The Legal Ground

The legality surrounding the assignment of a lease is rooted in UK property law. It necessitates compliance with various statutory requirements and often involves complex legal procedures. Consequently, parties usually engage solicitors to ensure that the assignment aligns with legal protocols, protecting the interests of all involved parties.

The assignment of a lease is a nuanced process, influenced by factors unique to each situation. Whether prompted by personal, business, or financial changes, lease assignments facilitate flexibility in property occupancy and use. Understanding this concept is crucial for tenants seeking an early exit from a lease, individuals looking for established lease properties, and landlords wishing to maintain continuous tenancy and income streams.

Understanding the Deed of Assignment of Tenancy

A “deed of assignment tenancy” is a legal document that evidences the transfer of lease obligations from the current tenant to another. It is an essential part of the lease assignment process, binding the new tenant to the terms stated in the original lease.

Landlord’s Checks Before Permitting Assignment of a Lease

The assignment of a lease, while beneficial in maintaining continuous occupancy and consistent rent payments, necessitates thorough due diligence on the part of the landlord. Before consenting to an assignment, it’s imperative for landlords to conduct comprehensive checks, mirroring the depth of evaluation done during the initial tenant screening process. These checks are crucial in mitigating potential risks and safeguarding the landlord’s investment.

Detailed Assessment of the Prospective Assignee

Landlords should ascertain the financial stability and reliability of the assignee. This assessment often involves:

• Credit Checks: This allows landlords to have a clearer understanding of the prospective assignee’s credit history, highlighting their ability to keep up with regular rent payments and financial commitments.
• Employment Verification: Landlords typically require proof of ongoing, stable employment. This verification helps ensure that the new tenant has a consistent income stream capable of covering the rent and other associated costs.
• References: Previous landlords or property managers can provide insights into the assignee’s behaviour, paying habits, and overall reliability. Personal references might also be necessary to form a more comprehensive view of the prospective tenant.

Review of the Assignee’s Intent

Understanding the prospective tenant’s reasons for seeking the property and their long-term intentions can provide reassurance. For instance, landlords should feel more comfortable knowing that the assignee plans to reside in the property for an extended period and doesn’t intend to sublet without permission or engage in unlawful activities.

Examination of Financial Documentation

Landlords may request documentation such as bank statements or savings accounts to further verify the assignee’s ability to afford the property. This scrutiny is particularly pertinent in higher-rent areas or for properties with higher maintenance costs.

Ensuring Contractual Compliance

It’s important for the landlord to confirm that the assignee understands and agrees to the terms set out in the original lease. The assignee must comply with all existing conditions, and any deviation needs to be negotiated with and approved by the landlord.

Legal Considerations

Given the legal complexities surrounding lease assignments, landlords often seek legal advice during this process. Lawyers can help ensure that the assignment adheres to local property laws, the original lease’s terms, and that the landlord’s interests are thoroughly protected throughout the transition.

By conducting these comprehensive checks, a landlord exercises due diligence, significantly reducing the likelihood of issues arising from the assignment of the lease. This meticulous approach helps maintain the property’s revenue stream, upholds community standards, and ensures the continued preservation and value of the property investment. It’s a proactive measure, providing the landlord with peace of mind that they are handing over their property to a reliable and responsible assignee.

Costs Involved in Lease Assignment

The process of lease assignment, while a practical solution for tenants looking to transfer their lease obligations, does entail various costs that both the assignor (original tenant) and assignee (new tenant) need to consider. These expenses contribute to a seamless transfer process, ensuring all legalities are properly managed, and all parties are adequately protected. Understanding these costs is essential as it prevents unexpected surprises and allows for a more transparent transaction.

Costs for the Assignor

• Advertising Costs: If the landlord does not immediately have a new tenant, the original tenant may need to advertise the property. This could involve online listings, printed materials, or hiring an estate agent to expedite the process, all of which incur costs.
• Tenant Screening Costs: The assignor might opt to conduct preliminary screenings of potential assignees, which include credit checks, reference checks, and other background investigations to ensure they’re presenting a reliable tenant to the landlord.
• Legal Fees: The legal intricacies of transferring a lease require the involvement of legal professionals. The assignor typically bears the cost for legal consultations, drafting the deed of assignment, and any related legal documentation.
• Landlord’s Administrative Fees: Some landlords charge an administrative fee for processing a lease assignment, covering the time and resources they expend to conduct their checks and modify their records.
• Potential Liability Costs: If the assignee fails to meet the lease obligations, and depending on the terms of the assignment, the original tenant may remain partially liable. This contingent liability could lead to future costs.

Costs for the Assignee

• Security Deposit: It’s standard practice for the new tenant to provide a security deposit before moving in. In some cases, the assignee reimburses the original tenant for the initial deposit, depending on its condition and any agreement between the parties.
• Advance Rent: The assignee may need to pay the first month’s rent in advance, similar to standard leasing arrangements.
• Legal Fees: Assignees also incur legal fees. They need legal counsel to review the terms of the lease, ensure the assignment is conducted correctly, and understand their new responsibilities and liabilities.
• Stamp Duty: Depending on the property’s value and the lease’s remaining duration, the assignee might need to pay Stamp Duty Land Tax (SDLT) on the premium or the rent of the lease.

Shared Costs

In some instances, both parties negotiate and equally share specific costs, such as those for legal consultations, to ensure fairness and mutual satisfaction in proceeding with the transaction.

Both assignors and assignees must factor in these expenses to accurately assess whether a lease assignment is a financially viable option. It is advisable to consult with real estate professionals and legal advisors to understand all potential charges fully. Having a clear, upfront understanding of these costs allows both parties to make informed decisions, ensuring a smooth, transparent, and fair transition process.

Does Assignment Create a New Tenancy?

No, an assignment does not create a new tenancy. It merely transfers the existing tenant’s rights and obligations to the new tenant, who then steps into the shoes of the original tenant under the same lease terms.

The Necessity of Legal Assistance

It is highly advisable to engage a solicitor during the assignment of a lease. A solicitor can provide necessary legal advice, prepare the deed of assignment of lease, and ensure compliance with various property and contract laws.

Deed of Assignment vs Tenancy Agreement

While they might sound similar, a deed of assignment is not the same as a tenancy agreement. The former refers to the document transferring existing lease rights to a new tenant, while the latter is a contract outlining the terms between a landlord and tenant for new occupancy.

Parties Involved in Signing the Deed of Assignment

The deed of assignment of lease is typically signed by the outgoing tenant, the incoming tenant, and sometimes, the landlord, especially when their consent is a prerequisite for the lease transfer.

Landlord’s Consent to Lease Assignment

A landlord can refuse to consent to assign a lease, but this refusal must be reasonable. Scenarios for justifiable refusal might include the prospective tenant’s inability to meet financial commitments or proposed use of the property that violates lease terms.

Lease Assignment vs Subletting

• Lease assignment involves the complete transfer of the tenant’s rights to another party.
• Subletting occurs when the tenant temporarily hands over the property rights to another party but retains some rights or eventually plans to return.

Financial Responsibilities in Lease Assignment

Typically, the outgoing tenant or the incoming tenant covers the costs related to the assignment of lease, such as legal fees, administrative charges, and any leasehold improvements. The specific arrangements may vary based on mutual agreements.

Assigning a Lease Without a Deed: Is It Possible?

No, a lease assignment must be evidenced by a deed to be legally binding. The deed of assignment tenancy is crucial as it protects the interests of all parties involved and provides legal clarity.

The Meaning of ‘Assignment’ in Rent Context

In the context of renting, ‘assignment’ refers to transferring the existing tenant’s lease obligations and rights to another party. The assignee assumes responsibility for rent payments and adherence to the lease terms.

Advantages of Assigning a Lease

There are several benefits associated with the assignment of a lease, including:

• Flexibility for the tenant needing to vacate the property before lease termination.
• Minimal interruption in rent payments for the landlord.
• Opportunity for another tenant to occupy the premises without having to negotiate a new lease.

Stamp Duty and Lease Assignment

Stamp duty on assignment of lease may apply depending on the premium paid and the lease’s yearly rent. It’s important to consult a solicitor to understand any potential tax implications.

Post-Assignment Liabilities for Tenants

After the assignment of a lease, the original tenant is generally released from future liabilities. However, they may remain liable if the new tenant defaults, depending on specific lease terms or if guarantees were provided.

Essential Documents for Lease Assignment

In the process of a lease assignment, several critical documents must be prepared, reviewed, and signed to ensure a legally binding transfer of rights and responsibilities from the original tenant (assignor) to the new tenant (assignee). These documents are crucial in defining the terms of the assignment, protecting the interests of all parties involved, and complying with legal standards. Here are the essential documents required for a successful lease assignment:

1. The Original Lease Agreement

• Before any transfer, all parties must review the original lease. It’s vital to understand any clauses or terms that could impact the assignment, such as conditions requiring the landlord’s consent for any lease transfer.
• The original lease agreement serves as the foundation for the assignment, outlining the terms and obligations that the assignee will need to adhere to.

2. Deed of Assignment of Lease

• This legal document formally transfers the lease obligations from the assignor to the assignee. It must clearly state the terms under which the lease is assigned, including any continuing liabilities of the assignor, if applicable.
• It should be comprehensive, detailing the rights and responsibilities of all parties and any guarantees provided by the assignor.
• The deed is usually drafted by a solicitor to ensure that it complies with legal standards and adequately protects everyone’s interests.

3. Landlord’s Consent to Assignment

• Most leases require the landlord’s formal approval for any assignment to occur. This document is the landlord’s written agreement, permitting the transfer from the current tenant to the new one.
• It may come with conditions the assignee must satisfy, which should be clearly outlined in the consent form.

4. Assignee’s Letter of Acceptance

• This document is proof that the assignee understands and agrees to the terms set out in the original lease and the deed of assignment.
• The letter may restate key lease terms for clarity and will affirm the assignee’s commitment to abide by all the lease conditions and responsibilities.

5. Legal Advisories

• Though not a formal part of the lease assignment, documentation of legal advice received by both the assignor and assignee (and possibly the landlord) is crucial.
• These advisories ensure each party has been informed of their legal rights and obligations, potentially offering protection in the event of future disputes.

6. Inventory List

• If relevant, an inventory list detailing the condition of the property, especially for furnished rentals, would be necessary. This document helps manage expectations and responsibilities concerning the property’s state and contents at the time of the assignment.

7. Proof of Assignee’s Financial Stability

• While not always formally part of the assignment documentation, evidence of the assignee’s ability to meet financial commitments (like bank statements or employment confirmation) often needs to be submitted to the landlord during the assignment process.

The process of assigning a lease is a complex legal transaction that requires strict adherence to procedural standards. These essential documents ensure that the assignment progresses smoothly, with clear understanding and agreement from all parties involved. Both assignor and assignee should seek legal counsel to ensure their interests are protected, and all documents are in order, further underscoring the importance of each document’s role in this pivotal real estate process.

Energy Performance Certificate (EPC) Requirements

Yes, an EPC is generally required for a lease assignment, especially if the building is to be sold or rented out. This certificate ensures that the property meets the necessary energy efficiency standards.

Registering an Assignment of Lease

Registration of an assignment of lease is crucial. It validates the change of tenant under the lease, making it legally binding and enforceable. This process usually involves submitting the deed of assignment to the appropriate land registry.

Timeframe for Assigning a Lease

Assigning a lease can take anywhere from a few weeks to several months, depending on factors like obtaining the landlord’s consent, the new tenant’s credibility, and the speed of legal processes.

Embracing the Benefits of Lease Assignment

Whether you’re a tenant seeking flexibility or a landlord desiring continued occupancy, lease assignment offers solutions that can cater to your individual needs, promoting ease and continuity in the leasing process.

If you’re considering a lease assignment, it’s paramount to seek professional advice to navigate the complexities involved. The information contained in this article should be used for information purposes only and should not be relied upon in place of specific legal advice.

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Assignment of a Residential Tenancy

Tom Entwistle

Assignment is when an existing and ongoing tenancy is transferred from one tenant to another. The person who transfers the tenancy is the 'assignor'� and the person who the tenancy is transferred to is the 'assignee'�.The outgoing tenant transfers his rights and obligations under the tenancy to the incoming tenant through a legal process which involves a Licence to Assign Note 1 below), permission given by the landlord, and a Deed of Assignment (see Note 2 below) to formalise the process. Under the Law of Property Act 1925 any assignment must be completed by deed.Most tenancy agreements, if they expressly permit assignment at all, (most are either silent on the matter or expressly forbid it) will only allow this with the consent of the landlord . Further, under Section 15(1) of the Housing Act 1988 it is an implied term in all Assured Shorthold Tenancies (ASTs) that the tenant will not assign without the Landlord'�s Consent.So long as the AST agreement does not state that the landlords'� consent is required to assign, the landlord CAN withhold consent. Section 15(2) HA 1988 states that Section 19 of the Landlord & tenant Act 1927 (consents to assign not to be unreasonably withheld) does not apply to Assured Tenancies.It is quite rare for standard ASTs to be assigned as they are short term and a new tenancy agreement can be easily arranged and signed, though doing this gives any new tenant a full new term and a minimum of 6 months. I the case of joint tenancies , once one or more tenants leave the rental property this effectively brings the whole joint tenancy to an end. This is because, in law, a joint tenancy is seen as one tenant: they are all individuals, but as far as the law and the landlord is concerned they are one - " the tenant ".Signing up new joining tenants and the remaining tenants to a new agreement starts a new tenancy with a new minimum term of 6 months , which may not suit the landlord, especially with student lets, where periods need to align with therm times. This is where assignments come in. In the case of joint tenancies, and especially in the case of student lets during term times, where tenants may come and go, assignments can be a very useful device for landlords.The new tenant/s take over where the outgoing ones left off leaving the original tenancy untouched. However, great care is needed to ensure that the documentation is completed correctly, deposit arrangements are taken care of between the tenants, and any guarantors are kept fully informed of the changes to ensure their continuing liabilities are preserved.Even where the AST agreement expressly forbids assignment, with the landlord'�s consent assignment can be effected. With the landlord'�s consent therefore an AST can be assigned to anyone.On the other hand, where a tenant assigns without the landlord'�s consent (similar applies when a tenant sub-lets) the landlord could start possession proceedings against the true tenant and the assignee under Ground 12 HA 1988 schedule 2 for breach of contact.Further, once the true AST tenant leaves the rental property as his main residence, the tenancy reverts to a common-law tenancy, no longer under Housing Act protection, and subject to a notice to quit. The original tenant no longer has security of tenure and can be "evicted" along with the new "tenant" who is now an unathourised occupant .Notes: 1. License to Assign '� a document signed by the landlord giving the tenant (assignor) permission to assign.2. Deed of Assignment '� a legal agreement clearly marked as a Deed of Assignment, signed as a deed and independently witnessed.3. LandlordZONE� Combined Licence and Deed of Assignment� By Tom Entwistle, LandlordZONE� ID2010663If you have any questions about any of the issues here, post your question to the LandlordZONE� Forums '� these are the busiest Rental Property Forums in the UK '� you will have an answer in no time at all. �LandlordZONE All Rights Reserved - never rely totally on these general guidelines which apply primarily to England and Wales. They are not definitive statements of the law. Before taking action or not, always do your own research and/or seek professional advice with the full facts of your case and all documents to hand.

Tom Entwistle has invested in and developed commercial and residential properties since 1979.

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How Important is the Deed of Assignment?

Case Analysis –  Cenolli  v  Cenolli  

An assignment is the formal transfer of a legal interest in land. In a housing context, it is the transfer of a secure or assured tenancy during the lifetime of the tenant.   

Think of it like one person (the ‘assignee’) stepping into the shoes of another person (the ‘assignor/original tenant’).   

An assignment does not mean that a new tenancy is signed, but that the existing (original) tenancy is transferred to somebody else.   

Assignment was considered recently by the Central London County Court in the case of Cenolli v Cenolli. This case illustrates the importance of following your organisation’s internal procedures and highlights the significance of good record keeping.    

In this case, the Claimant was the Defendant’s daughter.  

The Defendant had been a secured tenancy for approximately 19 years. The landlord was the  Local Authority.  

In 2017 there was an application to assign the tenancy from the Defendant to the Claimant and the council told the Claimant that she was now the tenant.  

In 2019 the Defendant brought proceedings against the council for a declaration she was the tenant in the High Court. This claim was struck out. Importantly, in that case the Local Authority could not locate the deed of assignment.    

The Defendant followed by bringing a claim in the Family Court against the Claimant for an Injunction, requiring her to permit the Defendant to occupy the property. The family court lacked jurisdiction and dismissed the case.   

The Claimant then brought a claim for possession of the Property against the Defendant. The Defendant counterclaimed for a declaration that she was the tenant of the flat.   

The Court dismissed the claim for possession and gave the Defendant judgement on her counterclaim. She was still the tenant.  

This was predominately because neither the Claimant nor the Local Authority produced the Deed of Assignment.   

There was simply little evidence to suggest there had been a correctly executed and valid Deed of Assignment.   

This case reminds us that:  

• There MUST be a correctly executed Deed of Assignment to legally transfer a tenancy agreement during someone’s lifetime.  
• You MUST retain a copy of the Deed of Assignment.  
• You should ALWAYS follow your internal policy and procedure when dealing with any assignment request.  
• Detailed records should be kept of communications with tenants.  

Contact us, we are here to help

If you would like any further advice on Tenancy Assignment, please contact our specialist Housing Team at MSB.

Amy has over 15 years of experience dealing specifically with housing litigation. She completed the Bar Vocation Course in 2005 and cross-qualified as a solicitor being admitted to the roll in 2008.

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Passing on a tenancy

Use this guide to help you when passing on your tenancy.

Assignments

An assignment is where a tenancy has been legally transferred from one person to another and must be done by a legal document called a Deed of Assignment.

Examples of where a tenant may wish to assign their tenancy to someone else include when a person moves into a residential care home or to another country.

A secure tenancy can only be assigned:

• to a person who could have succeeded the tenancy on the death of the tenant
• in a property transfer order under matrimonial and family legislation
• in a mutual exchange.
• Assigning your tenancy counts as a ‘succession’ and only one succession is allowed.

This means that:

• if you gained the tenancy through an assignment or succession you can't pass it on
• the person who you assign the tenancy to can’t assign it or have it succeeded by someone else.

What to think about before you apply

We strongly advise that you take legal advice from the Citizens Advice Bureau or a solicitor as there are a number of matters to consider.

For example, if you assign your tenancy to someone else, you will lose all legal rights to the tenancy and you won’t be able to get them back. Make sure you’ve thought very carefully before assigning your tenancy to someone else and don’t be forced into doing it.

If you assign the tenancy and the new tenant asks you to leave, you could be left without a place to live, as we won’t have to find you a new home.

Assigning your tenancy could also affect how much housing benefit your household can get.

Why we wouldn’t approve your application

We won’t approve your application if:

• the person you want to assign to doesn't have the right to succeed to the tenancy if you were to die
• you don’t live with the person you want to assign your tenancy to or you’re not married or in a civil partnership with them
• your home is too big for the person you want to give the tenancy to
• you don’t make arrangements to pay any debts you owe us
• we think you’re being forced to apply against your will.

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• 01865 770111

Deeds of Assignment

Do you have a joint tenancy of your home with a partner or other family member and one of you wants to come off the tenancy?

Do you have a sole tenancy of your home and you want to assign (transfer) your tenancy to someone else?

In either of these circumstances you will need help with drawing up a deed of assignment to transfer the tenancy.

Legal Aid is not available for help in drawing up a deed of assignment.  We offer a reasonable fixed fee of £175.00 plus VAT provided your case is a straightforward one.  For more complicated matters, please contact us for a quote.

It is a good idea in all cases to ask your landlord if they will agree to an assignment of the tenancy before you contact us,  as this will save you time and money.

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Deed of Assignment (Joint Tenants)

Notification.

⛪ Deed of assignment

A deed of assignment is a legal document that transfers the rights and obligations of one party to another. In most cases, a deed of assignment is used to transfer property or interests in property from one person to another.

Note: Working on a legal issue? Try our AI Legal Assistant - It's free while in beta 🚀

Deed of Assignment of Equitable Interest in Residential Land

England and Wales

Assignment Of Lease Deed

Deed of assignment of benefit of claim for the freehold or extended lease house under section 8 or section 14, deed of assignment of goodwill and intellectual property rights (transfer of a general partnership to an llp), arrears assignment deed, associated business activities, transfer partnership to llp, assign the benefit of a claim, assign lease, assign equitable interest, assign arrears, try the world's most advanced ai legal assistant, today.

• Practical Law

Deed of assignment of arrears

Practical law uk standard document w-024-5240  (approx. 17 pages).

• Contracts and Deeds - Land and Buildings
• Conveyancing Procedure

Suggestions

Assignment of assured and assured shorthold tenancies

Assignment of assured, assured shorthold, PRPSH demoted tenancies, and some agricultural tenancies depends on the terms of the tenancy agreement.

Right to assign of assured tenants

Housing association tenants, mutual exchange, planning restrictions.

Whether an assured or assured shorthold tenancy can be assigned depends on what is contained in the tenancy agreement.

The position regarding permission and consent is different from other tenancies.

Agricultural occupiers who are fully protected by the Housing Act 1988 have the same rights of assignment as assured tenants. Find out more about assured agricultural occupiers .

Periodic assured and assured shorthold tenants

The position depends upon what the tenancy agreement says about assignment. Periodic assured and assured shorthold tenants whose tenancy agreement says nothing about assignment cannot assign their tenancies unless their landlord consents. [ 1 ] In this case, landlords may withhold consent for any reason, whether reasonable or not. [ 2 ]

A tenant who assigns the tenancy without consent leaves the assignee in a vulnerable position as this is a breach of a term of the tenancy and is a discretionary ground for possession. [ 3 ] The exception to this is where a premium has been paid for the grant of tenancy, for example a tenancy deposit that is greater than one-sixth of the annual rent is a premium.

Otherwise, where the tenancy agreement:

allows assignment freely and without consent, assignment is allowed

expressly makes provision for the tenant to assign with the landlord's consent, the tenant will be able to assign with consent and such consent cannot be unreasonably withheld

forbids assignment, an assignment would be a breach of the tenancy agreement and could be subject to possession action

Fixed-term tenants

The rights of assured and assured shorthold tenants with fixed-term tenancies to assign their tenancies are governed by their tenancy agreements.

The rules on assignment above apply equally to assured and assured shorthold tenants of private registered providers of social housing (PRPSH). The rules for PRPSH demoted tenancies are the same as for periodic assured and assured shorthold tenancies, that is, generally only with the landlord's consent.

In addition, tenants of a PRPSH (or of a housing trust that is a charity) can mutually exchange with other social tenants.

Mutual exchange –  assignment of tenancy

A secure tenant has the right to mutually exchange their tenancy by way of assignment to a fully assured tenant. [ 4 ] For more information see  Secure tenancies and flexible tenancies .

Mutual exchange – transfer of tenancy

There is a statutory right to mutually exchange under the procedure introduced in section 158 of the Localism Act on 1 April 2012, where at least one of the tenancies is a periodic secure or assured tenancy which existed prior to 1 April 2012. 

The right only applies where one of the following applies: [ 5 ]

assured shorthold tenant exchanges with a secure tenant

assured tenant exchanges with flexible tenant

assured tenant exchanges with assured shorthold tenant

In these cases, the exchange is not done by way of assignment. Instead, each tenant's tenancy is brought to an end and a new tenancy is granted for their new property. Each tenant retains their existing status (where the landlord condition for creating that type of tenancy allows it).

Each tenant wishing to exchange must make a request in writing to their own landlord. The landlord can only refuse consent on limited grounds. [ 6 ] Exchanges can take place between two or more tenants if each landlord consents.

An assured shorthold tenant cannot rely on the right in section 158 of the Localism Act to exchange their tenancy in accordance with that section if: [ 7 ]

their tenancy is for a fixed term of less than two years

their tenancy is periodic

the rent payable under their tenancy is affordable rent, Intermediate rent, Mortgage Rescue rent or shared ownership rent

In these cases a mutual exchange may only take place if each landlord gives permission, for example through a contractual term in the tenancy agreement.

For more detailed information see  Secure tenancies and flexible tenancies.

An assured tenant could be refused permission for a mutual exchange by their landlord if the exchange would lead to a breach of a Section 106 planning agreement.

Section 106 of the Town and Country Planning Act 1990 allows a local authority to place legally binding obligations on a developer when it approves applications for planning permission. These restrictions will be binding on the owner of the property, unless the local authority agrees not to enforce a breach or to waive restrictions.

Planning obligations run with the land and will bind successive owners. [ 8 ] Breaches of a Section 106 agreement can be enforced by injunction. [ 9 ]

A Section 106 agreement can govern how a property is let, sold or otherwise disposed of. [ 10 ] The exact requirements of a Section 106 agreement will depend on the anticipated impact of the development and local needs.

A Section 106 agreement can be used to set additional restrictions on how a social housing property is let based on factors such as local connection or affordability. A landlord could refuse permission if a proposed mutual exchange breaches these restrictions. [ 11 ]

Last updated: 8 September 2022

s.15(1) Housing Act 1988.

s.15(2) Housing Act 1988.

Ground 12, Sch.2 Housing Act 1988.

s.92 Housing Act 1985.

s.158 Localism Act 2011.

s.159 Localism Act 2011.

reg.3 Transfer of Tenancies and Right to Acquire (Exclusion) Regulations 2012 SI 2012/696; see also para 7.3 of the Explanatory Memorandum to those regulations.

s.106(3) Town and Country Planning Act 1990.

s.106(5) Town and Country Planning Act 1990.

s.106(1) Town and Country Planning Act 1990.

ground 8, Sch.3 Housing Act 1985.

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Deed of Assignment - Commercial Lease

Option: Help from a lawyer

A Deed of Assignment for a Commercial Lease allows the Tenant of a commercial property with an existing commercial lease, to transfer the legal interest of the Tenant in that commercial property to another individual , company or partnership. This means that after the assignment, the original tenant under the commercial lease will no longer be the tenant of the commercial property and the person to who the lease is transferred will become the new tenant of the commercial property. As a consequence, the Tenant (also known as the " Assignor ") will have to vacate the commercial property, which will then be occupied by another person (known as the " Assignee "). The Assignee upon taking over the occupation of the commercial property will have to adhere to the terms contained in the lease including the amount of rent, the duration of the lease, payment schedules and other undertakings.

A Deed of Assignment can be beneficial to the Assignor in that it grants them the opportunity to leave the leased property before the expiration of the agreed termination date of the lease . This can be particularly useful where the Assignor judges that it will not be able to keep up with rent payments for the remainder of the lease due to economic constraints and wishes to completely let go of the property, or where the Assignor comes to the decision that it does not need the lease anymore for its business and wishes to transfer it completely to another party without retaining any rights to the property.

This template can be used to create such a Deed of Assignment for a commercial lease. This Deed of Assignment makes provision for the Assignee to pay a fee to the Assignor, which in effect is like a price which the Assignee is using to buy the rights of the commercial lease from the Assignor. This fee is known as the Premium . The Deed of Assignment also makes provision for the event where the Assignee will cover any additional costs the Assignor may incur as a result of the assignment, such as legal costs or any incidental costs that are separate from the Premium . An example of how this applies is where the Assignor hires a solicitor to provide legal advice and oversee the assignment of the lease, the Assignor may wish for the Assignee to be the one to pay for the costs incurred in hiring a solicitor. This cost will not form part of the Premium but rather an additional cost that the Assignor will bear and may therefore prefer for the Assignee to cover such cost.

This template also makes note of the persons who were parties to the commercial lease. Where there was a guarantor for the original Tenant, that person will not be a party to this assignment. The guarantor's identity is only noted in this template to accurately list all the parties to the commercial lease for record and documentary purposes.

A Deed of Assignment is a legally binding contract between all the interested parties, including the Assignor, the Assignee and the Landlord (i.e. the Owner of the commercial property). Before a commercial property can be assigned, the landlord's consent will usually be required. Similarly, the Commercial Lease will usually preclude the Assignor (i.e. the Tenant under the Commercial Lease) from assigning the lease unless the landlord expressly consents to such assignment. Under UK law, a landlord is under an implied duty to consent to the assignment of the lease unless it would be unreasonable to do so. Such consent should be given in within a reasonable time and it should be given in writing, although there is no strict format that this written notice must follow. In the rare case where the commercial lease does not state whether the assignment of the lease is subject to the landlord's consent, it will mean that the Assignor can assign the lease without the need for such landlord's consent. It is therefore important to refer to the commercial lease concerned and confirm what the lease's provisions are regarding its assignment and the landlord's consent. Where the landlord's consent is required for the assignment of the lease, the original Tenant should contact the landlord to address matters and request that consent is given. The manner with which the Original tenant should inform the landlord about the assignment of the lease and request consent will be contained in the commercial lease.

This Deed of Assignment can only be used where the commercial property is located in the jurisdiction of England and Wales .

This template can be used where the assignment of the lease applies to either of the two scenarios:

• Where the term of the commercial lease has not expired and there is still time remaining. For example where the commercial lease was for 6 years and the original Tenant has only used 3 years, with 3 years of the term left unused.
• Where the term of the commercial lease has expired but the original Tenant is still in possession of the property. This scenario is called a continuation of the lease. A continuation of the lease can occur either through an application made by the original Tenant to the court or it can occur automatically under statutory provisions.

Note: This document should only be used where the commercial lease is an unregistered lease . An unregistered commercial lease is a lease which was granted for a period of 7 (seven) years or less . Under UK law, if a commercial lease is for a period of more than 7 years, it has to be registered at the Land Registry. Where the lease is a registered lease and the original Tenant wishes to assign the lease, the TR1 form should instead be used.

Differences between a deed of assignment and a commercial sublease agreement

Under an assignment of a commercial lease, the Tenant (i.e. the Assignor) ceases to be liable for any breaches of the original lease and the responsibility for liability is legally transferred to the Assignee from the date of assignment. Whereas, under a commercial sublease, the Tenant (i.e. the Sublandlord) remains liable under the original lease for any breaches that may be committed by the party who is subleasing (i.e. the Subtenant). Under an assignment of a commercial lease, the Tenant (i.e. the Assignor) will not share the property with the Assignee , rather the Assignee will enjoy full possession of the commercial property from the date of assignment until the end of the term of the commercial lease. Whereas, under a commercial sublease, it is commonplace for the Tenant (i.e. Sublandlord) to only sublease a portion of the commercial property to the Subtenant and thus continue in shared possession of the commercial property with the Subtenant.

How to use this document

This Deed of Assignment allows the user to input all of the required rights and responsibilities that are necessary to assign the commercial property to an Assignee. The document allows a user to :

• input the address of the commercial property;
• the amount of Premium to be paid by the Assignee;
• the method of payment of the Premium;
• the date of the landlord's consent (if applicable);
• the details of any additional costs;
• whether the Assignee will indemnify the Assignor for losses;
• whether there is another agreement that also addresses the assignment of the lease;
• what type of title guarantee is being assigned; and
• other important details.

After the document has been filled out, it should be printed and signed by the parties. Consequently, each party should hold a copy of the signed deed for reference purposes.

As this Deed of Assignment relates to an interest in land, it is required to be executed as a deed . This means that it must be in writing and must be signed in the presence of a witness . If the party is a company, instead of a witness, the deed can be signed by two directors or by a director and the company secretary.

Applicable Law

Landlord and Tenant (Covenants) Act 1995

Law of Property (Miscellaneous Provisions) Act 1994

Landlord and Tenant Act 1954

Law of Property Act 1925

Land Registration Act 2002

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A guide to help you: Signing Documents in England and Wales

Other names for the document:

Commercial Sublease Agreement, Deed of Assignment of Lease, Deed of Assignment of Commercial Lease, Deed of Assignment of Unregistered Lease, Assignment of Commercial Lease

Country: United Kingdom

Commercial Property - Other downloadable templates of legal documents

• Business Lease Agreement
• Commercial Lease (Scotland)
• Sublease Agreement - Commercial Lease
• Formal Complaint to Landlord - Commercial Lease
• Consent for Subleasing of Commercial Premises
• Business Licence to Occupy
• Other downloadable templates of legal documents

UK: The importance of registering a lease assignment in the UK

A cornerstone provision in commercial lease agreements is the lease term. The lease term refers to the time period in which the commercial tenant agrees to occupy commercial premises. Commercial tenants, for a host of reasons, may need to exit their commercial lease sooner than they anticipated. Lease assignment is one of the most common ways for commercial tenants to exit their lease early . Commercial tenants, via this method, obtain their landlord's consent to transfer the existing lease to another business owner. This article will explain the importance of registering a lease assignment in the UK.

Commercial lease assignment is when a tenant transfers their existing lease to a new tenant. The existing tenant is the outgoing tenant or assignor, and the incoming tenant is the assignee. Lease assignment means that the commercial lease does not end but the tenant is merely substituted. The assignee takes on all the outgoing tenant's lease obligations and enjoys the tenant's rights in the lease agreement. Ultimately, the incoming tenant will enjoy sole possession of the commercial property as their commercial premises. The incoming tenant will also start making rent payments for the commercial property.

The assignor starts the process of lease assignment. Leases between the outgoing tenant and the landlord which have less than several years before the conclusion of the lease term will need to go through a formal process of assignment. The assignor will need to execute a deed of assignment to transfer the lease to the incoming tenant.

Registering a Lease Assignment

The assignor or the assignee may need to register a lease assignment. The assignor or assignee may be required to register the lease assignment instead of using a deed of assignment. A lease assignment will generally need to be registered in two instances. The assignor will need to register the lease assignment if the commercial lease has seven years or more left on the lease term.

Also, the assignor is required to register the lease assignment if the lease has already been registered with the HM Land Registry Office . They must complete and submit a TR1 form to the HM Land Registry Office for a lease assignment to be valid. Once the Land Registry receives this, they will process the lease assignment and place the incoming tenant's name as the titleholder to the lease in the Land Register.

Importance of Registering a Lease Assignment

When you enter or exit a commercial lease through assignment, the process of registering the lease assignment is a crucial part of assigning a lease. This is because until this is complete, the assignee is not legally the new tenant for the commercial lease. Therefore, the lease assignment process is not fully complete. The assignor's failure to register the lease assignment with the Land Registry Office adversely impacts the assignee. Due to the lease assignment process not being legally complete, the assignee has none of the rights usually granted to them in a commercial lease. The assignee will not have the right to sole occupation of the commercial premises. The assignor will also continue to be responsible for all the lease obligations in the commercial lease agreement. Had the lease assignment been validly registered, the assignee would be responsible for the lease obligations thereafter.

It is essential to have a solicitor to see you through the lease assignment process. The outgoing tenant's solicitor will usually draft the transfer for the Land Registry Office. However, you as the assignee will want your solicitor to confirm the lease assignment is correct and complete.

Land registration is time-consuming. The assignor should register the lease assignment as soon as possible. Legal rules concerning the timeframe for registration of a lease assignment also impact the expediency of registering land. As the assignor, you can only register the lease assignment for up to two months from the lease completion date. The law will deem the lease to be void if not registered within this timeframe. You are then reliant on a discretionary agreement with the Land Registrar. The Land Registrar may extend the timeframe for you to register the lease with the use of an order.

Break Clause Within a Commercial Lease

It is important for the assignor to register the lease assignment with the Land Registry Office. The assignor's act of registering the lease assignment ensures the law considers the lease assignment process to be complete. Further, the assignor registering the lease assignment protects the incoming tenant's ability to rely on a break notice provision in the commercial lease agreement. A break clause simply allows the incoming commercial tenant to terminate the lease agreement before the lease term ends. The assignor typically needs to register the commercial lease assignment for the incoming tenant to rely on the break clause.

If the assignor has not registered the lease assignment with the Land Registry Office, the incoming tenant will be left in a precarious position. The assignee may need to end the lease early but cannot rely on the break clause.

Key Takeaways

Lease assignment is where commercial lease transfers from the existing commercial tenant to a new tenant. The assignor must register the lease assignment with the Land Registry Office in two situations. Where the commercial lease being assigned has seven years or more left on the lease term, the lease assignment will need to be registered. Likewise, registration of a lease assignment is required if the commercial lease is registered. Registration of a lease assignment is essential for assigning a commercial lease. Without it, the assignment is not legal, and it is crucial that registering the lease assignment is done within the correct time frame. Registering a lease assignment may also allow the assignee to exercise the break clause in the lease agreement if necessary.

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