Deed of Assignment of Lease

Use our Deed of Assignment of Lease template when there is an unregistered lease of commercial property that is to be assigned from the existing tenant to a new one for the rest of the lease’s term. This will nearly always require the landlord’s consent (check this in the existing lease). Landlords give such consent in a “licence to assign” normally. Legalo has a licence to assign template available for this if needed.

Use this template for commercial property situated in England or Wales, but not Scotland.

Our co-founder and UK solicitor of 29 years, David, drafted this template. This ensures that you can rely on the document being up-to-date and legally comprehensive. Our detailed guidance notes (free with the template) offer a step-by-step explanation of the deed. They make completing the final document fast and easy. A copy of the guidance notes are available here: guide to this deed of assignment of lease template.

Using our Deed of Assignment of Lease template

Download this template for a Deed of Assignment of Lease in Word format once purchased. You can then easily edit it to suit your own needs on your won computer.

We provide a full money-back guarantee if you are not happy with your template document for any reason.

Once purchased, you can reuse the template as many times as you want. So you can then create further  deeds of assignment at no extra cost. We keep our templates under review to ensure they are up-to-date. When we update a template that you have bought, we will notify you by email. You will then get a free copy of the latest template.

How and when to use our Deed of Assignment of Lease template

Do not use this assignment where you have a lease registered with the Land Registry. (This would be due to the lease originally being for 7 years or longer when first granted.) If the lease is registered, instead of a deed of assignment, you need to use form TR1. This form is available free of charge from https://www.gov.uk – just click on the link.

Use the Land Registry’s AP1 form as well.

You’ll also need an ID1 or ID2 form each for the old tenant and the new tenant, assuming neither has a solicitor acting for them. Again, you can find these forms available free of charge from the Land Registry – just click on these links: ID1 form and ID2 form.

You will need to go with your ID paperwork to a solicitor or notary public local to you for the relevant form to be signed off. There will be a charge for this, but it will be considerably less than if you had the law firm do all of the legal work for you. Bear in mind that a lot of firms of solicitors may refuse to help you, as you are doing the main assignment work yourself and therefore cutting them out of a job. You might therefore find an independent notary public near you to be more willing to help you. Find your local notary here.

In all other cases you can use this deed of assignment of lease template.

Discount Package available

If you need the full batch of documents for the assignment of a lease, we offer 20% off when you buy them all at the same time using our discount package – click here for more details.

If you would like to see our other commercial property templates, click on the link.

FAQs on Deed of Assignment of a Lease

Below, we have answered the top questions on this topic from the Internet.

Who drafts a deed of assignment of a lease?

In the UK, it is common for a solicitor specialising in commercial property law to prepare a deed of assignment of lease on behalf of the assignor. Both the assignor (the party transferring the lease) and the assignee (the party receiving it) may seek legal counsel to ensure the document complies with legal requirements and adequately protects their interests. However, there is the option to forego hiring an expensive solicitor if you use a professionally-written template from Legalo.

Do you need a solicitor to assign a lease?

As long as you have a well-drafted document, such as Legalo’s template, a solicitor is not absolutely necessary for a deed of assignment of a lease. However, for the licence to assign the lease, you should check with the landlord before using our template for that, to see that it does not insist upon your using their document or paying their lawyer to produce the document. This may also apply to an authorised guarantee agreement or AGA.

Who signs a deed of assignment of lease?

The assignor (transferring the lease) and the assignee (the new tenant acquiring the lease) sign the deed of assignment. In some cases, it may also require the signatures of the landlord, a guarantor or other parties with an interest in the lease. Normally, the only document that landlord signs is the licence to assign.

How much does a deed of assignment cost?

The cost of a deed of assignment in the UK can vary widely. It depends on several factors, including:

• the complexity of the transaction;
• the involvement of legal professionals or solicitors; and
• the specific fees they charge.

On average, you might expect to pay several hundred pounds for a straightforward assignment. However, more complex assignments involving multiple parties or additional legal services could cost more. You can save a lot of money by using our template for just £34.95.

What documents do you need to assign a lease?

To assign a lease in the UK, you typically need the following documents:

• Deed of Assignment: The primary document transferring the lease rights.
• Licence to Assign: If required by the lease, obtain written consent from the landlord.
• Proof of Identity: Both the assignor and assignee may need to provide identification.
• Lease Agreement: A copy of the original lease agreement.
• AGA: the landlord may insist on the outgoing tenant signing an authorised guarantee agreement.

What is the process of assigning a lease?

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

• Review Lease Terms: Examine the original lease to understand assignment conditions.
• Obtain Consent: Obtain written consent from the landlord if required by the lease.
• Draft Deed: Create a deed of assignment to transfer lease rights.
• Execute Deed: Sign the deed, often in the presence of witnesses.
• Other documents: sign the licence to assign and AGA if required by the landlord.
• Register: Assignments where the lease was registered will require registration with HM Land Registry.

How long does it take to assign a lease?

The timeline to assign a lease varies based on a number of factors. Generally, it can take anywhere from a few weeks to a few months. It’s crucial to start the process well in advance of any time-sensitive requirements, like moving or the lease’s expiration, to ensure a smooth transition.

Are tenants liable after assignment of lease?

If the lease requires the landlord’s consent to the assignment, then the landlord will typically also ask the outgoing tenant to sign an authorised guarantee agreement. This AGA will make the outgoing tenant the guarantor for the new tenant’s obligations under the lease. Otherwise, the outgoing tenant would not be liable after the assignment.

What is the difference between assignment and transfer of lease?

These two words mean the same thing in legal terms.

Is SDLT payable on an assignment of a lease?

Stamp Duty Land Tax (SDLT) would have been payable when the original lease was granted if it fell within the thresholds. It is not payable again just because the remaining term of the lease is assigned.

Does a deed of assignment need to be registered?

A deed of assignment does need to be registered with HM Land Registry if the original lease was registered. Registration of the original lease was a requirement if the lease was for a term exceeding seven years.

Is assignment the same as ownership?

No, assignment is not the same as ownership. Assignment refers to the transfer of certain rights and responsibilities, such as a lease or contractual obligations, from one party to another. It does not necessarily convey full ownership of the underlying asset, which may still belong to a third party. Ownership typically implies full legal and beneficial rights to an asset, including control, use, and the ability to transfer it to others, without restrictions, which may not be the case with an assignment.

Is a deed of assignment legally binding?

Yes, a deed of assignment of lease is legally binding in the UK as long as it follows all necessary legal procedures to make it so. It is a formal legal document that, when signed and delivered by the involved parties, creates a legally enforceable agreement to transfer lease or contractual rights. The enforceability depends on the document’s compliance with legal requirements, including the use of appropriate language, proper execution, and adherence to any statutory or regulatory rules.

Is a deed of assignment the same as a tenancy agreement?

No, a deed of assignment and a tenancy agreement are not the same. A deed of assignment is a legal document used to transfer an existing lease from one party to another, and does not create a new lease but transfers the rights and obligations of an existing one for the remainder of its original term. In contrast, a tenancy agreement is a separate document that establishes the terms and conditions of a new tenancy or lease between a landlord and a tenant, outlining the rules, responsibilities, and duration of the rental arrangement.