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Can a landlord refuse to assign a commercial lease?

Most commercial leases will include a provision which prohibits assignment without the landlords consent, and will prescribe the process the tenant needs to go through to secure this. What some landlords do not realise is that they can only refuse consent if they have very good reasons.

Can a commercial lease be assigned?

Assigning a commercial lease means transferring the lease from one tenant to another. The rights and obligations under the lease will be transferred from the outgoing tenant to the incoming tenant.

What does assignment by lessor mean?

LESSEE ACKNOWLEDGES THAT LESSOR MAY SELL, ASSIGN, GRANT A SECURITY INTEREST IN, OR OTHERWISE TRANSFER ALL OR ANY PART OF ITS RIGHTS, TITLE AND INTEREST IN THIS LEASE AND THE EQUIPMENT WITHOUT NOTICE TO OR CONSENT OF LESSEE.

Does a lease assignment need to be registered?

An assignment of a registered lease must be registered at the Land Registry. So must an assignment of a lease that is not registered but whose term has more than 7 years left to run. If the assignment is not registered, it will not take effect as a legal assignment but only as an equitable assignment.

Can a tenant assign a lease without consent?

Assigning or underletting without consent, where that consent is required, is a bdocHub which (on usual lease terms) gives rise to a right to forfeit the lease. The tenant may seek relief from forfeiture in the usual way.

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