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Licence to Assign – what exactly is it and why do some leasehold properties require one?
What is a Licence to Assign?
Some leases, but by no means all, contain a provision that require an outgoing tenant (the Assignor) to obtain their landlord’s/freeholder’s consent to them selling their lease. This Licence to Assign is the consent document to assign the lease/flat to a new incoming tenant (the Assignee). It should be noted that the consent can have conditions attached for the Assignor and the Assignee and that it does not have to be by way of a formal deed.
When do you need a Licence Assign?
The tenant will need this Licence any time it wishes to assign the lease. By ‘assign’ this means sell or transfer a property. For example, even if the person just wants to transfer from their sole name into joint names or from a company name to individual director or shareholder names, this would trigger the requirement for a Licence to Assign under the lease.
Why do you need a Licence to Assign?
Many sellers view the Licence to Assign requirement adversely and just as an additional expense. Assignee’s can also view them in a negative light, particularly if they are asked to pay a deposit (See ‘conditions’ attached to Licence below). However, the reality is that these licences can be viewed as good practice and management by the landlord of a building. They are essentially vetting and approving the incoming owners of the flats in the building and want ensure they are of a suitable character and a certain calibre so as to (hopefully) avoid issues with non-payment of charges for the building (which can lead to expensive litigation and is ultimately payable by the other flat owners); and nuisances which can arise between neighbours etc. (the cost of abating the same is also to be borne by the other flat owners).
Who prepares the Licence to Assign?
This consent is almost always prepared by the Landlord’s solicitor or managing agent who will charge professional fees for producing the draft Licence, which is a pre-condition of the Licence being drafted and provided. The fees will need to be paid by either the Assignor or Assignee, but usual practice means it falls upon the Assignor, i.e. the seller of a flat.
What are the ‘conditions’ attached to the Licence to Assign?
Besides payment of the Landlord’s professional fees (which range to between £750 to £2,000 plus VAT), the Assignee will be asked sometimes to provide references (usually character, professional and financial) if they are individuals to prove that they are reliable and trustworthy and can afford the annual outgoings on the property. Furthermore, non-UK residents and corporate entities, such as companies and trusts, may be asked to pay x2 or x3 years’ service charge and ground rent up front and to enter into an additional deed known as a ‘Rent Deposit Deed’ or ‘Maintenance/Service Charge Deposit Deed’, which is a form of guarantee for the Landlord.
How long does a Licence to Assign take?
This really depends on how fast and responsive the Landlord’s solicitor or managing agent is in a) providing the conditions and then b) getting the Licence signed by the Landlord. Equally, the Assignee would need to satisfy the conditions (i.e. obtain references or agree the deposit deed) and sign up. Typically, a Licence can be completed within 3-4 weeks, but this can be shorter if the parties are motivated and proactive and quick to liaise with one another to deal with the conditions and sign up, however it can also take longer if the parties involved are slow. By parties, this is not just in reference to Assignor and Assignee, but also third parties such as banks providing financial reference or employers providing professional references for the Assignee.
Furthermore, the professional fees are usually required to be paid “whether or not the matter proceeds to completion” meaning that the fee is payable whether or not the assignment proceeds and even if it becomes abortive, the whole fee is payable. Sometimes, then, the party paying the fees will want to have some certainty that the assignment transaction (to that particular party /entity) is going to proceed before it will submit the request for consent, which can delay things also.
Can consent be refused?
The request for consent by the Assignor to the Landlord is usually qualified by stating that the Landlord cannot withhold or delay their consent unreasonably. The Landlord and Tenant Act 1988 also requires Landlords give consent within a reasonable time (except where it is unreasonable to do so).
What is ‘reasonable’ was considered in the case No. 1 West India Quay (Residential) Ltd vs East Tower Apartments Ltd, 2018 . The Landlord was No.1 West India Quay, and the Tenant was East Tower Apartments.
The Tenant had 42 apartments on underleases, which it was selling, with the (superior) Landlord’s consent required for these to be sold.
The Landlord in this case imposed three conditions upon its consent:
- That bank references be provided for the proposed assignee
- That the property be inspected by a surveyor, with the Tenant to cover the costs (£350 + VAT per property)
- That the Tenant covered the Landlord’s legal costs of £1,250 + VAT per property.
The Tenant started proceedings against the Landlord, claiming these conditions were unreasonable and that consent had therefore been unreasonably withheld.
The courts in the first instance found all three conditions to be unreasonable. However, on appeal, the High Court found only condition 3 was unreasonable. Yet they decided that that this single unreasonable condition made the Landlord’s overall refusal of consent unreasonable, even though the other two conditions were reasonable conditions.
Finally, the Court of Appeal concluded that Landlord’s decision to refuse consent was reasonable. The fact one of the conditions was bad, did not outweigh the two good conditions in the overall context.
The case highlighted the difficulties facing Landlords, but showed a rational approach from the courts, whereby when multiple reasons are given for withheld consent, the overall decision will be considered, even where some individual reasons may be invalid.
14 March 2022
What does 'License to Assign' mean when buying a property?
Find out what License to Assign means when you are buying a property. 'What does License to Assign mean?' plus over 150 other property related terms and jargon in plain English
- License to Assign
Licence to assign is a requirement involved in the sale of most leasehold properties . It takes a bit of explaining but overall its pretty simple.
Say I own a building that is split into several flats and I sell one of the flats to you on a 99 year lease for £100,000. That means you have the right to live in that flat for the next 99 years.
You are now the leaseholder and I'm the freeholder . I still own the bricks and mortar but it is, under law, almost impossible for me to throw you out. In property lingo I have assigned
In the lease there will be some obligations I'll be wanting from you - all the way from being a reasonable neighour to those who live in the other flat up to paying me some money every year (known as the Service Charge ) for maintaining the actual block.
Now say five years later you decide that you want to sell the flat to someone else. More accurately you are not selling the flat but the lease - the right to live in the flat for the next 94 years.
It might say in the lease that you can only sell the lease if you get my (the freeholder's) permission. I mean, hey, I sold it to you ... not someone else.
Most freeholders don't really care when leases are sold but it does mean the lease is going to be assigned to someone else which means there is going to be some paperwork involved.
But rather than having to get out of bed and do that paperwork I can give you a license to assign the lease to someone else.
Now I said "Most freeholders don't really care". Some do, passionately! Yes they may give you the license to assign eventually but they may also want the buyer to jump through some hoops first.
I know of a number of apartment buildings in England where potential buyers must sit an interview in front of the freeholder or a panel of current leaseholders before license to assign is considered. In most of these cases its simply to check if you are posh enough or rich enough.
But remember not all sellers need a license to assign. Its only required if the lease states that a leaseholder selling the remaining lease to someone else needs the freeholders permission to do so.
To find out more about how to purchase leasehold properties the smart way pick up a copy of my ebook How to Really Buy a Property .
Search Results for 'License to Assign' in How to Really Buy a Property
Search results for 'license to assign' in property faq, there were no results for 'license to assign' in propery faq, search results for 'license to assign' in property terminology.
I'm Tim Hill, Author of How to Really Buy a Property - Now in its 17th edition and completely updated for 2023.
I'm a property buyer, seller, landlord, tenant and I've been an agent in hundreds of transactions. I own a property portfolio across Europe but that doesn't mean I think you should to!
This book is my collective knowledge and experience that I have gained working within the property market of England and Wales for over a decade. I've written it so that you can benefit from what I have learnt whether you are a first time buyer or a budding buy-to-let investor.
There are no gimmicks here and no get rich quick schemes - just practical no nonsense advice so you can buy the property you want in 2023 at the best price with the least stress.
What's in the 2023 edition .....
- Why buying property is right for some and wrong for others;
- The state of the market today;
- What Brexit and Covid 19 means to the future of UK property;
- How the media have become unreliable indicators of the market;
- Who makes good quality predictions for the property market (and who doesn't);
- How the market works over the short term and the long term;
- The difference between property bubbles and property booms;
- Why it can be a good idea to buy when prices are falling;
- The principles of buying a property to let and what the text books don't tell you;
- Ways to get on the property ladder when it looks impossible;
- How professional buyers and investors work with estate agents to get better deals;
- Why you should see as many Financial Advisors as possible;
- What to do before you start viewing so you don't lose your dream home;
- Who the surveyor, solicitor and estate agent are really working for;
- How to make an offer to get things your way;
- Who to trust and who, with the best intentions, may be misleading you;
- Why you should work to minimise the time between offer agreed and exchange;
- What type of survey to get and why structural surveys can be money wasted;
- Why surveyors should never estimate the cost of works;
- When rising damp, penetrating damp, subsidence, cracking, sagging roofs, bulging walls and all the other frightening things in a surveyor's report might be serious, and when they are not;
- Why asking the vendor to carry out work is not always a good idea.
- Step by step guides explaining what should be happening, what can happen, and how to solve mole hills before they become mountains;
- Over 140 terms in an easy to use glossary so the jargon of the property industry can be understood;
- 20 true stories of successes, and disasters, that real people experienced when buying a property.
.... and what's not in the book ...
- Continuous commentary banging on about how great property is and that it is the only place to put your money!
- Recommending businesses that I get kickbacks from.
- Rewording and republishing what is available freely from most websites anyway.
- Endless tales of how easy it is to buy property and profit.
- Attempts to sell you some course or other product.
- Blank pages and spaced out text to make the book seem bigger.
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Insights // 24 October 2022
What is a Licence to Assign? A Summary
Partner katja wigham, in our commercial property team , explains what a licence to assign is..
A licence to assign is a landlord’s permission for a tenant (the assignor) in occupation under a lease to assign the lease to a new incoming tenant (the Assignee). It should be noted that this permission does not necessarily need to be in a formal deed. Therefore, landlords and agents should be mindful of falling into the trap of granting permission through correspondence, thereby inadvertently granting consent without the assignor and assignee having to comply with the required conditions such as providing a guarantee or rent deposit. In Aubergine Enterprises Ltd v Lakewood International Ltd (2002) it was held that consent to assignment was contained in correspondence even if was stated to be “subject to licence”.
Landlords are provided with some comfort in that if the lease contains a provision that consent must be given by deed, then this is the only way in which permission to assign can be granted. In this instance, the landlord, assignor and assignee (and guarantor if required) will be a party to the licence, which will usually be prepared in triplicate and a copy provided to each party on completion.
The licence will contain several covenants, for example a covenant between the Assignee and Landlord to observe and perform the covenants contained in the lease. The assignor may covenant to pay the landlord’s legal costs in connection with the licence and covenant not to allow the Assignee to take occupation of the premises until completion of the assignment.
Under Section 19(A) of the Landlord and Tenant Act 1927, the landlord should not unreasonably withhold consent to the assignment of the lease. If however, the lease contains provisions such as that the Assignor must not be in arrears and/or in breach of any covenants of the lease then the Landlord is entitled to withhold consent until these obligations have been complied with. The licence should incorporate a right of re-entry clause allowing the landlord to forfeit the lease owing to a tenant’s breach of covenants in the licence.
A landlord will often want the licence to include an indemnity clause whereby the assignor and the assignee will indemnify the landlord against all liabilities, losses, costs incurred and damages arising out of the licence. An assignor however is likely to want to limit the indemnity to reasonable costs and expenses, properly incurred and to their own breaches.
Finally, the permission under a licence to assign typically remains valid for three months following completion of the licence, during which time the assignor and assignee will assign the lease. If assignment does not take place within the specified time then the licence will cease to be valid and the assignor will have to start over again.
For further information or legal advice, please contact [email protected] or call 0118 951 6800.
This article is intended for the use of clients and other interested parties. The information contained in it is believed to be correct at the date of publication, but it is necessarily of a brief and general nature and should not be relied upon as a substitute for specific professional advice.
Partner, Commercial Property Law
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Licence to Assign a Lease
Templates / Licence to Assign a Lease
Our Licence to Assign a Lease template:
- Expert-lawyer-drafted template for reliability
- Create a legally-binding licence
- Save on legal fees
- Easy to edit with our guidance notes
How Does It Work?
- 1. Download
Landlord’s can use our Licence to Assign a Lease template to grant formal written permission to assign (transfer) a lease from one tenant to another. Use it for property that is in England or Wales, but not for Scottish property .
This licence to assign incorporates various options, so it is appropriate:
1. where the date of the lease on or after 1 January 1996;
2. whether or not there was someone guaranteeing the tenant’s obligations under the original lease;
3. whether or not there is an option to renew the lease on expiry (called “security of tenure”) under the Landlord and Tenant Act 1954; and
4. regardless of whether the lease is a commercial one or is for residential property.
If a tenant is selling or transferring the remaining term of a lease to a new tenant, it is very likely that they will need the landlord’s permission for the sale or transfer. You can simply check the terms if the lease to see if this is the case. If so, this needs the landlord to complete and sign a licence to assign.
How to assign “old”leases
You should not use this licence to assign for “old leases”. An “old” lease is one where date of the lease is before 1 January 1996. There is more about this in the guide to this template . If you are looking for a licence to assign for an “old lease”, then please email us at: [email protected] .
Other templates you may need
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 .
An authorised guarantee agreement (or “AGA”) does not come with this template of the licence to assign. There would normally be one in the existing lease, which you should use. If there is not, or if its wording isn’t accepted by the present tenant, you can purchase a template AGA separately from Legalo – click on the link.
Click the link to see the full range of commercial property documents we offer.
Using the Licence to Assign a Lease template
David has drafted this template. He is our co-founder and a solicitor of over twenty years. He has written it in plain English and without legal jargon. The download comes with full guidance notes to keep completing your final document simple.
Once purchased, download the licence template in Word format and then edited to your requirements. Once the document is complete, then the parties need to sign it. Usually the landlord then passes it to the purchaser of the lease.
We provide a full money-back guarantee if you are not happy with your template document for any reason.
When you draft the licence to assign, use our free guidance notes to walk you through the document. A summary of the guidance notes can be viewed here .
What is a Licence To Assign?
The licence to assign is where the landlord and owner of the property grants permission to its tenant to sell or transfer the remaining term of the lease to another party, who will take over as the tenant.
There are situations in which a tenant will want to assign their lease. For example, a landlord owns a building which the tenant is using for storage. The tenant decides they no longer need the building. However, the original lease still has time left on it. If no “break clause” is available, to surrender the lease might cost the tenant:
- their deposit; and/or
- any rent owed to the end of the existing term of the lease.
To avoid wasting this money, the tenant has presumably asked the landlord for permission to assign (or transfer) the lease to someone who will be able to use the building and pay the rent.
What happens if the Landlord gives permission?
If the landlord agrees, the tenant would then transfer the remainder of the term of the original lease to the new tenant. This new tenant then becomes primarily responsible for paying the rent to the end of the term (although, with an AGA, the out-going tenant might still be responsible if the new tenant defaults).
The landlord will want to be sure that the new tenant is able to pay the rent before he consents to the assignment. Alternatively, he may require someone to act as a guarantor before agreeing to it.
This licence to assign is different from sub-letting. Where a sub-lease agreement is in place the existing tenant can be held responsible for any default on the original lease, even though a new tenant is in place. For a sub-letting situation you would need a sub-lease agreement and a licence to sub-let which again needs to be signed by the landlord.
Registering the Assignment of the Lease
Signing your documents is not the end of it. You may need to register the assignment at the Land Registry. For more details, click on this link and then scroll down to either:
- if your lease is unregistered, the section headed “2.3 Transfers or assignments of unregistered leases having more than seven years of the term unexpired”; or
- if your lease is already registered, the section headed “2.5 Transfers of any registered leases “.
- Related Templates Deed of Assignment of Lease Sub-Lease Agreement Licence to Sub-Let Authorised Guarantee Agreement Discount Package: Assignment of a Lease Declarations and notices to contract out of LTA 1954
- Guide to our Licence to Assign a Lease Template
- Guide to our Deed of Assignment of Lease Template
- Guide to our Authorised Guarantee Agreement
Licence to Assign Lease
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When selling a leasehold property you may be required to provide a licence to assign document if the lease states that the landlord must consent prior to assigning the lease to the property purchaser. Brady Solicitors can manage one or all of your licence to assign work following a simple introduction to the leaseholders.
What is a licence to assign?
A licence to assign is the formal document detailing the landlord’s permission for a leaseholder selling their property to assign the lease to the new incoming leaseholder purchasing their property. This then makes the incoming leaseholder responsible for the leaseholder duties within the lease.
When assessing whether to approve a licence to assign request there are a number of aspects to check, such as whether the ground rent and service charges are paid up to date. Whilst some managing agents have the capacity to manage these assessment themselves, a large proportion of managing agents prefer to use expert solicitors to carry out all their licence to assign work.
How long does a licence to assign take?
When required, we can turn around a licence to assign request within 3 working days of receiving the relevant documentation.
How do I find out if a licence to assign is required?
You will be able to find out whether a leasehold property that you’re selling requires a licence to assign by referring to your lease. If one is required there will be a clause within the lease stating so.
Brady Solicitors’ experts can:
- Liaise directly with the leaseholder’s solicitors following a simple introduction from their managing agent.
- Carry out all of the necessary assessments to confidently approve a licence to assign request.
- Invoice the leaseholder directly, removing any potential cost to the managing agent.
- Provide the managing agent with all of the relevant documentation upon completion to keep on file to aid with good estate management.
- Work within a time frame to suit the requirements of the leaseholder and freeholder or managing agent.
- Provide a notice of transfer or a notice of charge for the purchasing/incoming leaseholder.
Get in touch with any questions regarding licence to assign or if you would like Brady Solicitors to manage one or all of your licence to assign projects.
No-cost recovery of £100,000 of arrears from a housing association, licence to assign: streamlined and added-value support for a busy managing agent, contact details.
By Phone Nottingham: 0115 985 3450
By Email Get in touch [email protected]
HELP WITH THE LICENCE TO ASSIGN PROCESS
For advice and assistance with providing a licence to assign, contact Bradys’ specialist leasehold solicitors.
Local Solicitors & Estate Agents
What is a licence to assign.
If you are a tenant in a commercial lease and are looking for ways to extricate yourself from the contract, you might want to consider whether you have the license to assign.
A licence to assign is when there is a clause within the contract that states you are allowed to sell – or ‘assign’ – the remainder of the lease on to a third party. If you wish to do this, you must obtain permission – a licence – from the landlord or management company.
Before granting a licence, it is very likely the landlord will want to run certain checks on the proposed buyer to ascertain their financial stability, and obtain references to ensure their suitability. If everything is found to be acceptable and the landlord consents, you may proceed with the sale, freeing yourself from the lease.
However, when assigning a lease, there are a few things to be wary of:
- You will be responsible for paying the costs incurred by your landlord, including their legal fees and the expense of carrying out reference checks.
- Our landlord may state that you, as the seller, must act as a guarantor for the buyer. So if the new tenant does not meet his or her first payment, you will have to provide the money. Thus you will not be completely free of liability.
- The landlord is within his or her rights to withhold a licence to assign, if there are reasonable grounds to do so. This might include the proposed tenant not being financially viable.
- If you do not have express permission from your landlord and you do assign the lease, you will be in breach of the lease.
Therefore, assigning a lease may sound simple, but it can be a complex legal issue that requires careful planning and execution. That is why it is important to have expert legal advice on your side.
A commercial property solicitor from our team can suggest whether you are able to assign a lease. If your application is unreasonably refused by your landlord, we can help you fight this decision, using our expertise to argue your case. If you are given a licence to assign, we will prepare all the paperwork for you, making sure your position is fully protected and negotiating any terms that could be deemed unfavourable for you.
For more information about this article or any aspect of our commercial property legal services, please call us on 01772 424999 or email [email protected] or why not book an appointment. We will be delighted to help you and remember we do not charge you for initial advice.
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Make your Free Licence to Assign
A licence to assign is an agreement between a landlord and a tenant where the tenant wants to assign or transfer their obligations under a lease to another party (known as the assignee). If you are... ... Read more
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How to Make a Licence to Assign
What is a licence to assign?
A licence to assign is an agreement between a landlord and a tenant where the tenant wants to assign or transfer their obligations under a lease to another party (known as the assignee).
If you are a landlord of a commercial property and your tenant wants to assign, or transfer their obligations under the lease to another commercial tenant, use this licence to assign template to formally give them your consent to do so.
For use in England and Wales only.
When should I use a licence to assign?
Use this licence to assign:
- when your tenant has approached you for consent to assign the lease of a commercial property to another business
- when the original lease includes a clause preventing the tenant from assigning without your consent
- when you have seen the assignee's financial accounts and they are in a position to pay the rent and other sums due under the lease
- when the assignee will use the property for a purpose allowed under the original lease
What is included in a licence to assign?
This licence to assign covers:
- providing a commercial tenant with consent to assign
- an optional requirement that the tenant will guarantee the rent and sums due under the lease
- a time limit for completion of the lease assignment
- the landlord's registration fee
Why do I need a licence to assign?
You will need to use a licence to assign if you have a lease and it doesn't allow the tenant to transfer the lease to a new tenant without obtaining the landlord's consent first. This licence to assign is suitable if the lease was originally granted on or after 1 January 1996 and does not contain a clause stating that it is an 'old' tenancy for the purposes of Landlord and Tenant (Covenants) Act 1995 .
What happens if the lease doesn't allow assignments?
If the lease absolutely prohibits assignment, then the landlord can refuse consent without giving a reason. If it prevents assignment without the landlord's consent the landlord must have a good reason for refusing. Refusal is likely to be justified only if the assignee:
cannot show that it has the financial strength to pay the rent and other sums under the lease or to meet the cost of repairs and other tenant obligations; or
intends to use the property for a purpose not allowed by the lease (eg using a shop as a fast food outlet or restaurant). Commercial landlords often require the assignee to show three years' accounts demonstrating after-tax profits at least three times the level of the rent due under the lease or provide a director's, parent company, or bank guarantee. Where there is a legitimate doubt over the assignee's financial strength, the landlord may insist that the current tenant guarantees the assignee's ability to meet all tenant obligations under the lease.
In what form must the tenant's application be?
There is no prescribed form for a tenant's application for consent to assign, so the request may have been made verbally, by letter or by email.
Do you know the date when the request to assign the lease was made?
If the date is known, the licence will include the date the tenant first made a request to the landlord for its consent to the assignment. If no date is known, the licence will just state that a request was made.
What is the registration amount?
A landlord can charge the tenant to register an assignment, fees of £25 or £50 are common.
What are some other names for Licence to Assign?
Last reviewed or updated 17/06/2022
- Licence to Sublet
- Landlord's Notice to Exclude Security of Tenure
- Notice of Breach of Covenants
- Break Notice
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Licence to assign old commercial property lease.
A licence to assign a lease of commercial property which is an "old" lease for the purposes of the Landlord and Tenant (Covenants) Act 1995. This document allows the leaseholder to transfer their interest in the property to another party, with the landlord's guarantee.
What to watch out for
- that the lease is an "old" lease for the purposes of the Landlord and Tenant (Covenants) Act 1995
- that the property is commercial
- that the lease includes a guarantee
England and Wales
Licence To Assign New Commercial Property Lease
A licence to assign a lease of commercial property which is a "new" lease for the purposes of the Landlord and Tenant (Covenants) Act 1995. This document allows the tenant to assign the lease to a new tenant, and includes a guarantee from the original tenant in case the new tenant defaults on rent or damages the property.
- The document should specify what the landlord and tenant are allowed to do under the lease
- It should also contain provisions for what happens if either party breaches the terms of the lease
- The licence to assign should also state how long the lease is for and what the rental amount is
Lease Assignment Heads of Terms
This document is a set of non-binding terms for assigning a lease.
- Make sure that the heads of terms are clear and concise, and that they accurately reflect the agreement between the parties.
- Pay attention to any deadlines or other time
- sensitive information included in the heads of terms.
- Be aware of any special conditions or requirements that may be attached to the assignment of the lease.
Relevant Contract Types
🏚️ assignment of lease.
A lease assignment is a transfer of the tenant's interest in a lease to a new tenant. The old tenant is released from the lease and is no longer responsible for the property. The new tenant assumes all the rights and responsibilities of the old tenant under the lease.
🏡 Licence to assign
A licence to assign is a legal document that allows the holder of a property to transfer their interest in the property to another person. The licence to assign must be in writing and signed by both parties.
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Licence to Assign definition
Examples of licence to assign in a sentence.
Licence to Assign between Nuclear Electric plc, AGR & PWR Co. Limited and Croftshire Investments Limited, relating to Units 3 – 5 St Oswalds, Gloucester.
If the consent is given, a Licence to Assign will be issued to record this consent, but this document alone does not complete the assignment and your lawyer will need to prepare the additional documents to do this.
Licence to Assign between Nuclear Electric plc, AGR & PWR Co. Limited and Chelt Developments Limited relating to Barnwood Way, Barnwood, Gloucestershire.
The RTM company’s responsibilities also include dealing with and issuing the Certificate of Compliance, Deed of Covenant and Licence to Assign .
The granting of a Licence to Assign was agreed on 6 November, ASC officers have written to service users and their families about this change in provider.
Four Seasons is required, in the lease, to cover all reasonable costs related to The Licence to Assign the lease.
The Council has now received a request from Poole Hotels Ltd, which is the current assignee of the lease, seeking consent for a Licence to Assign the lease to Patch Properties 2006 Limited Partnership.
As part of granting the Licence to Assign of the lease, Country Court Care sought to vary the deed so that they can refurbish or rebuild the home to accommodate 21st century standards.
In that connection a Licence to Assign and an Authorised Guarantee Agreement (“AGA” - as referred to in the Act), both dated 6th December 2001, were entered into, and the assignment followed.
Legal colleagues, specialising in Property Law and Contract/Procurement Law, have been providing advice in relation to the granting of a Licence to Assign Burgess Park.
More Definitions of Licence to Assign
Related to licence to assign.
Licencee means any Person licensed under this By-law;
Licence Term means the time period during which the Licence shall be in effect as specified in the applicable Product Schedule (subject to earlier termination pursuant to the terms of this Agreement).
Business License means a license issued by the Department to a medical marijuana dispensary, grower, processor, testing laboratory, or transporter.
licence means one or more of the licences or the approvals granted to the HSP in respect of the Beds at the Home under Part VII or Part VIII of the Act.
Sub-License means the sub-licensing of any space in the Station Development Assets and Project Utilities in the Station Development Project, by the Station Facility Manager to any licensee, in accordance with the Station Facility Management Agreement;
Government Subcontract shall have the meaning attributed to such term under the definition of “Government Contract”.
Major Subcontract means any Subcontract with a Subcontractor for those portions of the Work listed in Section 1.3 of Attachment G.
Material Government Contract means any Government Contract that is a Material Contract.
MSA means the Maryland Stadium Authority.
Information that has not been made public means any information to which the public does not generally have access, and that is pro- hibited from disclosure under Government Code Chapter 552 (the Public Information Act).
Third Party Consent means any one of them;
Expansion to an existing manufactured home park or subdivision means the preparation of additional sites by the construction of facilities for servicing the lots on which the manufactured homes are to be affixed (including the installation of utilities, the construction of streets, and either final site grading or the pouring of concrete pads).
Third Party Subcontract means a subcontract at any tier entered into by Contractor or a subcontractor, financed in whole or in part with Federal assistance originally derived from Homeland Security.
License means any Copyright License, Patent License, Trademark License or other license of rights or interests now held or hereafter acquired by any Credit Party.
Consumer Contract means an agreement between the Retailer and the Consumer that includes the supply of electricity and distribution services;
Customer Contract means any Contract between Seller or any of its Subsidiaries, on the one hand, and a customer, distributor or dealer of Seller or any of its Subsidiaries, on the other hand, for the purchase, sale, distribution, marketing, servicing, or support of the Products.
Subcontract means any contract as defined in subpart 2.1 entered into by a subcontractor to furnish supplies or services for performance of a prime contract or a subcontract. It includes but is not limited to purchase orders, and changes and modifications to purchase orders.
Generation Licence means a Licence to Generate electricity and to
Government Contract means a contract awarded by a governmental entity for general construction, an improvement, a service, or a public works project or for a purchase of supplies, materials, or equipment.
Supply Licence means the licence granted to us under section 6(1)(d) of the Act;
Named User License means the Metric and Licensed Level applicable to each Named User.
Copyleft License means any license that requires, as a condition of use, modification and/or distribution of software subject to such license, that such software subject to such license, or other software incorporated into, derived from, or used or distributed with such software subject to such license (i) in the case of software, be made available or distributed in a form other than binary (e.g., source code form), (ii) be licensed for the purpose of preparing derivative works, (iii) be licensed under terms that allow the Company’s or any Subsidiary of the Company’s products or portions thereof or interfaces therefor to be reverse engineered, reverse assembled or disassembled (other than by operation of Law) or (iv) be redistributable at no license fee. Copyleft Licenses include the GNU General Public License, the GNU Lesser General Public License, the Mozilla Public License, the Common Development and Distribution License, the Eclipse Public License and all Creative Commons “sharealike” licenses.
Procurement organization means an eye bank, organ procurement organization, or tissue bank.
Business Licenses has the meaning ascribed to it in Section 1.01(a)(x).
Informed Customer Consent means, in the case where consent is required: (1) the Customer is provided with a clear statement of the data or information to be collected and allowable uses of that data or information by the party seeking consent; (2) the frequency of data or information release and the duration of time for which the consent is valid; and (3) process by which the Customer may revoke consent. In no case shall silence by the Customer ever be construed to mean express or implied consent to a request by the Company, or its Contractors. Customer consent shall be provided directly from the Customer and documented in writing, subject to forms and processes as defined by the Company.
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Out-law / your daily need-to-know, licenses pursuant to leases.
Out-Law Guide | 04 Aug 2011 | 5:15 pm | 3 min. read
Before tenants can assign, sublet or alter premises, or change their use, they will usually have to obtain the consent of their landlord. Landlords will usually document any consents they have granted in relation to property in the form of a licence.
However, landlords can find that they have granted consent through a communication that they did not mean to grant consent. This is because, unless the tenant's lease states otherwise, there is no legal requirement for consents to be given in the form of a deed or other formal legal document.
What constitutes a consent?
As there is no special form that a consent has to take, the courts tend to interpret the requirement quite broadly. All of the following communications from landlords or their agents have been considered a suitable consent:
- a letter from the landlord's agent stating that the landlord had no objection to the change;
- a letter from the landlord's agent, which was headed 'subject to licence' but confirmed that the landlord gave consent subject to certain conditions. As all other conditions except completion of the licence were satisfied, the Court of Appeal ruled the letter was sufficient;
- a chain of letters from the landlord's surveyors, each headed 'subject to licence', culminating in a letter, also headed 'subject to licence', confirming receipt of satisfactory references and that a draft licence would be issued;
- correspondence from the landlord's solicitors confirming 'consent in principle'. The fact that the letters sent by the solicitors were headed 'subject to licence' and contained conditions did not make this consent equivocal or uncertain;
- an email from the landlord's solicitors confirming 'consent in principle' to assigning a lease, even though the email was expressed to be conditional on payment of the landlord's costs and completion of a licence to assign the lease. The email also contained a disclaimer, stating that 'consent will only be provided on the completion and delivery of a formal licence executed as a deed' and that the landlord reserved the right to change the form of the draft licence and impose new conditions in light of any further information received.
Obviously no two cases are the same and much will depend on the provisions in a tenant's lease. The trend for the courts to infer consent, though, is clear. Therefore, unless the tenant's lease expressly states that the landlord's consent must be in the form of a deed, landlords should assume that the courts may interpret letters and emails – and, in some cases, even oral communications – as 'consents' for the purposes of a tenant's lease, despite any disclaimers attached to them.
Some simple dos and don'ts
- Wherever possible, make sure that all new leases stipulate that the landlord's consent must be given by deed;
- On receipt of an application for consent, check the provisions in the tenant's lease to see whether the lease stipulates that consents must be in writing or in the form of a deed;
- Be aware that if the lease is silent on the issue of consents then oral communication may suffice. If the lease stipulates that consents must be in writing, a letter or email may suffice;
- Make it clear to the tenant and its representatives, at the very outset, that the transaction remains subject to formal licence granted by way of a deed, and that no consent can be granted through correspondence between any of the parties or their representatives;
- Mark all correspondence 'subject to licence';
- Be very cautious in what you say and do. If tenants ask, make it clear that the landlord is still considering the application;
- Where solicitors are instructed, make it clear that they have been instructed to prepare the paperwork so that the parties are in a position to complete a licence quickly if, having considered the application, the landlord decides to consent to it;
- It is important to avoid any suggestion that 'the tenant's application is fine in principle' or that 'the landlord is minded to approve the tenant's application' as this could be interpreted as consent.
Remember that these safeguards may not always be effective and that, even if they are, other remedies may be available if a tenant has altered its position in reliance on what the landlord has said and done.
In cases where a landlord has unintentionally consented to an application, it may be possible to argue that the landlord's consent will not be effective until any conditions attached to that consent have been satisfied. However, legal action is expensive and the outcome is never certain.
Therefore, landlords need to tread warily when dealing with applications for consent, especially where the landlord needs contractual commitments or guarantees from tenants and their guarantors before the tenant proceeds.
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- Practical Law
Licence to assign an old lease
Practical law uk standard document 0-101-9305 (approx. 18 pages).
- Assignments, Variations, Surrenders and Termination - Land and Buildings
As you should i need their signatures to bill right to go to comply with you? Sl Costco
- Hold off on assignment and.
- Legal definition of Lease Assignment Fees by Law Insider.
- It may also refer to a plan.
- What does 'License to Assign' mean when buying a property.
- These statutory duties apply where a lease a includes a covenant.
- Subletting or assigning a lease FREE Legal Information.
License To Assign Leasehold
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How Do You Assign or Transfer a Commercial Lease. Landlords costs on commercial leases Gregory Abrams. Service Directory
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There is to assign
- The Law Firm
Licence to Assign Lease
- May 11, 2015 October 7, 2020
There are times in business where legal information can be quite confusing. If you have never heard of the licence to assign lease you might have a lot of questions. In this article we will overview that document, what it is used for, when to use it, how it protects you, and cover the document template we sell here.
The licence to assign lease is where you grant permission as the landlord to a tenant of a property to sell the lease to another. Already you can see why it can be a mouthful to explain. To offer an explanation, see our example below.
A landlord owns a building in which the tenant is using it for storage. The tenant decides they no longer need the building. However, the original lease still has time left on it. To break the lease would cost the tenant their deposit and any rent owed as stated in the lease agreement. To avoid this complicated issue and money lost the tenant has asked the landlord for permission to sell the lease. The original lease would then be transferred to the new tenant and finished out by that new tenant. This new tenant is responsible for paying the rent that is left, and the existing tenant is now out of the equation.
This is different from a sub-let. In a sub-let the existing tenant can be held responsible for any default on the original lease, even though a new tenant is in place. For a sub-let situation you would need a licence to sub-let agreement. The licence to assign lease is needed for the situation we are describing here.
For the licence to assign lease to be effective the landlord has to actually grant permission. Furthermore, the landlord will want to approve the new tenant. They have the right to refuse any prospective tenant even if they have granted a general licence to assign lease. Typically the refusal comes from the risk of the new tenant not being able to pay the rent owed. However, the landlord may offer a licence to assign lease and approval if a guarantor signs a document stating they are responsible for the tenant if they default based on the existing lease.
Now that you understand what the licence to assign lease is and how it can be used, we can look at other aspects. You need to use the licence to assign lease any time a tenant does not wish to break a contract and asks that an assignment of lease occur. However, you are under no obligation to actually do as the tenant asks. While it can only be used in this type of situation, a landlord can decline the use of the licence to assign lease for any reason. There are UK laws about subletting, leases, and assignment of lease that need to be followed. Without the landlord approval a new tenant cannot gain possession of the existing tenantâ€™s space. All parties involved must also sign the licence to assign lease. The Tenants Covenants Act of 1995 can affect how the licence to assign lease is used. It is imperative that you understand this act before you enter into any agreement. The document is meant to protect the landlord but offer the tenant a way out of a lease without breaching it and being protected if the new tenant defaults.
Our site offers you the document template for the licence to assign lease. This document was created by a solicitor to make it legal in a court of law. It is completely DIY and modifications can be made. Once signed it must be registered in the proper municipal.
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Licence to Assign
You are here: Home » Services » Services for Landlords » Licence to Assign
If you are a landlord and have been approached by the tenant requesting a Licence to Assign we are able to assist you.
A Licence to Assign will be needed if the terms of the lease requires the tenant to obtain your consent prior to assigning of the lease. We will check the specific terms of the lease and advise you of any conditions that should be satisfied prior to you entering the licence.
Before approving the assignment as the landlord we would liaise with you to confirm:-
- That the ground rent and service charges are paid up to date;
- That the assignee is able to comply with the terms of the lease following the assignment, therefore often a personal and financial reference will be obtained for the assignee.
- That the assignee will have an address for service in England and Wales; and
- If the assignee is intended to be an individual who resides aboard or a company whether it is necessary to obtain a security deposit or a guarantor for the assignee.
Your costs will be paid by the tenant. We will always obtain an undertaking for our legal costs for acting for you from the tenant’s solicitors before commencing any work.
LEASE Law are also able to assist with any other transaction where there is lease involvement, which will include Licences for Alterations, Deeds of Variation, Deed of Rectifications and providing general advice in respect of residential lease issues or interpretation of the terms of a lease.
If you have a lease query, please do feel free to contact us for a free no obligation discussion to establish whether we can assist you. Please contact Jade Thomas ( [email protected] or 0204 511 9100) or Joanna Botley ( [email protected] or 0204 511 9101).
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This Licence to Assign is the consent document to assign the lease/flat to a new incoming tenant (the Assignee). It should be noted that the consent can have conditions attached for the Assignor and the Assignee and that it does not have to be by way of a formal deed. When do you need a Licence Assign?
License to Assign Licence to assign is a requirement involved in the sale of most leasehold properties. It takes a bit of explaining but overall its pretty simple. Say I own a building that is split into several flats and I sell one of the flats to you on a 99 year lease for £100,000.
A licence to assign is a landlord's permission for a tenant (the assignor) in occupation under a lease to assign the lease to a new incoming tenant (the Assignee). It should be noted that this permission does not necessarily need to be in a formal deed.
The licence to assign is where the landlord and owner of the property grants permission to its tenant to sell or transfer the remaining term of the lease to another party, who will take over as the tenant. There are situations in which a tenant will want to assign their lease.
This Licence to Assign should be used where the tenant wishes to assign (i.e. sell) the lease to a new tenant and, under the terms of the lease, the landlord's consent is required. The Licence includes covenants by the tenant and assignee relating to payment of costs, registration at the Land Registry and performance of the covenants in the lease.
A licence to assign is the formal document detailing the landlord's permission for a leaseholder selling their property to assign the lease to the new incoming leaseholder purchasing their property. This then makes the incoming leaseholder responsible for the leaseholder duties within the lease.
A licence to assign is when there is a clause within the contract that states you are allowed to sell - or 'assign' - the remainder of the lease on to a third party. If you wish to do this, you must obtain permission - a licence - from the landlord or management company.
by Practical Law Property Licence from the landlord giving consent to the tenant to assign a lease which is a new lease under the Landlord and Tenant (Covenants) Act 1995. The tenant is required to give an authorised guarantee agreement (AGA) in a separate document and any guarantor for the outgoing tenant is joined as a party to the licence.
If you are a landlord of a commercial property and your tenant wants to assign, or transfer their obligations under the lease to another commercial tenant, use this licence to assign template to formally give them your consent to do so. For use in England and Wales only. When should I use a licence to assign? Use this licence to assign:
A licence to assign a lease of commercial property which is a "new" lease for the purposes of the Landlord and Tenant (Covenants) Act 1995. The licence provides for an optional authorised guarantee agreement (AGA) to be given by the tenant, either on the terms set out in the licence or in a separate document.
A licence to assign a lease of commercial property which is a "new" lease for the purposes of the Landlord and Tenant (Covenants) Act 1995. This document allows the tenant to assign the lease to a new tenant, and includes a guarantee from the original tenant in case the new tenant defaults on rent or damages the property.
Remove Advertising. Licence to Assign means the licence or consent required to be given by the Landlord (and any Superior Landlord) to permit the Sellers to assign that Leasehold Property to the Buyer in accordance with the terms of the Lease of that Leasehold Property. Sample 1. Based on 1 documents.
A Licence to Assign is an agreement between a Landlord and a Tenant where the Tenant wants to transfer their obligations under a Lease to another party, the Assignee.. Generally, most Commercial Property Leases allow the Tenant to assign the Lease with the Landlord's consent, which consent shall not be unreasonably withheld. If the Lease does not specifically mention the right to assign, it ...
Before tenants can assign, sublet or alter premises, or change their use, they will usually have to obtain the consent of their landlord. Landlords will usually document any consents they have granted in relation to property in the form of a licence.
A Licence to Assign will be needed if the terms of the lease requires the tenant to obtain the landlord's consent prior to assigning their lease. We will check the specific terms of the lease and advise the landlord of any conditions that should be satisfied prior to entering the licence.
Licence from the landlord giving consent to the tenant to assign a lease which is an old lease under the Landlord and Tenant (Covenants) Act 1995. NOTE: THIS DOCUMENT IS NO LONGER MAINTAINED. FOR A LICENCE TO ASSIGN AN OLD LEASE, SEE Standard document, Licence to assign: old lease with guarantee.
What license to assign leasehold house up to a deemed a specific manner so. Paul has been agreed and assigning or license, a lease required to obtain professional. ... Hold off on assignment and. Roman; What does 'License to Assign' mean when buying a property. It may also refer to a plan. Legal definition of Lease Assignment Fees by Law ...
For the licence to assign lease to be effective the landlord has to actually grant permission. Furthermore, the landlord will want to approve the new tenant. They have the right to refuse any prospective tenant even if they have granted a general licence to assign lease.
A Licence to Assign will be needed if the terms of the lease requires the tenant to obtain your consent prior to assigning of the lease. We will check the specific terms of the lease and advise you of any conditions that should be satisfied prior to you entering the licence. Before approving the assignment as the landlord we would liaise with ...
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