When you buy a small business including premises, you will either need to purchase the premises or, in most cases, take assignment of the lease. This is the process by which you take over the remaining lease period and the liabilities associated with it.
When taking an old lease you are effectively stepping into the shoes of the person you’re buying the business from. We work with you to identify the liabilities in the lease and to try and minimise these. We will also review the land registration document and raise enquiries with the existing tenant to ensure all the correct documentation is in place.
When it comes to assigning leases we understand that it is important that you have this set up right, from the beginning. We will support you with:
- assisting landlord and tenant in providing correct documentation
- obtaining landlord’s consent
- advising on lease conditions for assignment.
Getting Permission First
It is highly likely that you will be required to gain permission from the landlord prior to taking over any lease. This will have to be done in a specific way as laid out in the lease agreement – failure to comply with these terms exactly can be costly down the road. It is imperative to obtain landlord’s approval and consent to the assignment as soon as possible.