Guidance for commercial tenants
Lease assignment / sub-letting
I want to sell my business / assign my lease. How do I go about it?
The lease terms will determine whether or not you are able to assign the lease. Before you do anything, it is recommended that you obtain your own legal advice before proceeding.
If you want to sell your business / assign your lease before the lease expires you must find someone else who is willing to pay the rent and take over the other obligations set out in the lease.
Once you have identified a willing person you must request and obtain formal approval from the Council.
In order to consider the request the following information will be required:
- The full name and address of the proposed assignee
- Details of their bankers to enable a bank reference to be obtained
- The assignees consent to a NAFN (National Anti Fraud Network) search being undertaken.
If satisfactory references are received and the Council agree to the assignment, it will be a condition of the grant of landlord’s consent to the assignment that the tenant has complied with the following:
- The Council’s Legal and Surveyor costs are paid
- All rent is paid up to date
- The completion of any identified repair / decoration works
- The submission of a valid electrical certificate in respect of the electrical installation; see Electrical safety
- The submission of valid gas certificates in respect of any gas appliances; see Gas appliances
- The submission of an Energy Performance Certificate (if appropriate).
Subject to the receipt of satisfactory references and confirmation of the above items, Legal Services will be instructed to prepare a licence to assign. When we confirm our agreement to an assignment and/or the licence is issued, this does not mean that the lease has been transferred – you must arrange this with your assignee and your solicitors.
Until the Council completes the legal formalities you will continue to be the tenant of the premises.
If a change in the permitted use is required this will also require formal consent. Consent may be refused in certain circumstances.
What if the proposed assignee cannot supply adequate references?
If inadequate references are received the Council will not consent to the assignment proceeding unless the assignee is able to identify a guarantor who is willing to guarantee the payment of rent and compliance with the lease terms on their behalf.
The guarantor will have to provide adequate references.
What if I want to allow another business to occupy part of my premises?
This is called a ‘sub-letting’ and will only be possible if the terms of your lease permit you to sub-let part. If the right to sub-let is excluded you will be unable to sub-let. It is recommended that you obtain legal advice before proceeding.
If you consider you have the right to sub-let a formal written request should be made to Land and Property Services providing full details of what is intended and who the sub-tenant will be.
