Commercial lease transfer

When dealing with commercial conveyancing, understanding the transfer of a commercial lease can be crucial for any business owner or investor looking to acquire a company with an existing lease.

Homeward Legal has extensive experience assisting clients in the transfer of commercial leasing. Our team of professionals understands the complexity involved in this process, and can guide you through each step with efficiency.

Our commercial lease solicitors can help you transfer your leases in England and Wales, no matter where you are located.

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The transfer of a commercial lease is the process by which a lease agreement (from one party, i.e., the current owner), to another (the new owner), is assigned or transferred.

The new owner can assume all the rights and obligations outlined in the original lease agreement or agree on new terms.

The process of transferring the lease typically involves:

1. Reviewing your existing lease agreement

Review the lease agreement carefully to ensure you understand all the conditions and terms for the transfer. Be sure to pay attention to clauses that pertain to subletting, ownership change, and landlord consent.

2. Getting the landlord's approval

It is essential to get the landlord's/freeholder's written permission before transferring the lease. Most landlords have certain criteria they require to be met in order to approve a transfer of tenancy. It may be necessary to evaluate the new owner's financial stability and ability to run a business and if the building is fit for purpose.

3. Creating a lease agreement

A lease agreement is required to formalise the transfer. It must be signed by both parties. This document details the responsibilities and obligations of the new tenant, while releasing the original tenant.

4. Signing the lease agreement

Both parties must sign the agreement in front of witnesses or a notary public once the finalisation is complete.

5. Submitting all required documentation

Provide all the documentation required to transfer the lease, including the signed agreement, financial statements and business plans.

6. Notifying relevant parties

It is important to inform all parties involved, including vendors, suppliers and customers, once the transfer of lease has been approved. Update all contact information to ensure smooth transitions for all parties involved.

As part of the transfer of a commercial lease, certain documents must be provided. These documents are essential for legally transferring the commercial lease and ensuring that all parties have a smooth transition.

We have listed below the documents required for a transfer of commercial leases to a new owner.

• The lease agreement signed by the parties detailing the terms and conditions of the lease transfer, including the date it will take effect.
• The current landlord's written consent to transfer the lease.
• Documents that contain information about the tenant including his or her legal name, address of business, contact details, and background information.
• Financial statements that demonstrate the stability and ability of the new owner to meet the lease obligations.
• A new insurance policy must be obtained by the new owner to reflect ownership transfer. It is important to protect both the new owner as well as the property.

Other documents may be needed based on specific requirements in the lease contract or as requested by your landlord. To ensure that all documentation is in order, it's important to review the terms of the lease and to communicate with the landlord.

Assignment is the transfer of rights and obligations from one party to another (the assignee). The assignor, who is usually the current tenant of the property, becomes the new tenant.

A lease transfer is the act of transferring the leasehold interests from the current tenant to the new tenant. A lease transfer is when the current tenant is replaced by a new tenant.

The process of transferring an existing commercial lease to a buyer can take anywhere between 6 and 8 weeks.

Transferring a commercial lease may take a variety of time frames depending on factors like the landlord's responsiveness, the complexity of negotiating if any, and other negotiations. To allow all parties time to review and approve a transfer, it's best to begin the process early.

When transferring a lease of an existing business to a new owner, it is highly recommended to consult experienced commercial lease lawyers. They can offer guidance and make sure that the process is carried out correctly while protecting the interests of all parties.

Commercial conveyancing fees for a lease transfer will vary depending on the cost of the property involved and the complexity of the transaction. 

Legal fees

The cost of paying for commercial conveyancing solicitors - are the biggest element of the overall cost of a commercial conveyancing transaction. 

For a straightforward lease transfer the legal fees will cost around £750-£1500

Disbursements

Disbursements are costs that the solicitor pays on your behalf to third parties. They typically include:

• Land registry fee: Depending on the property value it will cost £20-£910. 
• Search fees: It includes Local authority searches, environmental searches etc.. and will cost £400-£500.
• Stamp duty land tax(SDLT): Calculated based on the value of the commercial lease.

The total cost to except for a commercial lease will range from £1500 to £3500, including VAT and disbursements

At Homeward Legal, we offer a no-obligation quote from trusted and experienced commercial conveyancing experts that includes fixed legal fees. That ensures the quote you receive for legal fees is exactly what you pay, with no hidden costs. 

You can also learn more about conveyancing fees in our guide.

Wheter you're looking to buy or sell your property, get in touch with the team today about our commercial conveyancing services by filling the form below.

Alternatively, you can always give us a ring on or request a callback and we'll be happy to speak to you.