assignment of tenancy uk

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Assignment Of A Lease: Everything You Need To Know! 📃

Sep 04, 2023 | Shakeel Mir

There are are plenty of reasons why you might want to exit your commercial lease early. Perhaps your current premises are no longer suitable for the needs of your growing business, or maybe your business is in financial difficulty and you need to find a lease with more favourable terms.

There are also plenty of options when it comes to deciding how to exit a lease before the specified end date. Some of the most common include: assignment of a lease, which involves passing the lease onto another business; terminating the lease, with the help of a break clause if your contract contains one; or subletting your premises and adopting the role of landlord yourself.

Unfortunately, exiting a lease early is not always a simple process. A lease is a legal contract, and if you break it your landlord could take you to court. Opting to pursue a process such as assigning the lease to a new tenant can make exiting a lease early possible, but there are many factors that should be considered before beginning this process.

If you are thinking of trying to leave your lease early, it is advisable to obtain independent legal advice from an appropriately experienced commercial property solicitor before taking any action.

If you require legal advice or assistance on getting out of a commercial lease please call us on 0800 086 2929 , email [email protected] or complete our Free Online Enquiry Form .

In addition to office meetings, we also offer remote meetings via telephone and video conferencing software so can assist you wherever you are based.

What is assignment of a lease?

The process of assignment of a lease is essentially selling the lease to a third party (the “assignee”).

If you are a commercial property tenant, your contract likely contains a clause that allows you to assign your lease to a new tenant. To do this, you will need to find a potential new tenant yourself. Your landlord will expect this new tenant to meet the same expectations they originally set for you, and you will probably need their consent before the assignment can be completed.

While your landlord cannot reasonably withhold their consent for the assignment, they are under no obligation to give their consent if the new tenant doesn’t meet the terms set out in your contract – so it’s wise to be picky yourself about the tenant you select.

There are likely to be restrictions around when and if you can assign your lease specified in your contract. Some common restrictions include not allowing lease assignments if the contract is for a short period, and not allowing the lease to be assigned if the lease is ending within a few years.

Once a lease as been assigned, the assignee will become the new tenant and will be responsible for ensuring compliance with all of the tenant’s obligations in the lease.

What checks will a landlord make before permitting assignment of a lease?

Financial status

Your landlord will want to see evidence – usually in the form of business bank account statements – that the new tenant is in a strong financial position

Statements from previous landlords that the tenant has leased property from will be required to show that the tenant is reliable and doesn’t have a history of missing payments or otherwise neglecting their responsibilities as a tenant

Proposed use of the premises

Your landlord will probably be looking for a new tenant to intend to use the premises in broadly the same way as you have done in the past as the lease will specify what use is allowed.

Likelihood of requesting alterations to the building

As above, your landlord will require advanced notice of any alterations the new tenant may wish to make to the premises, and in some cases written permission in the form of a Licence to Alter will be required. It is likely that they may withhold their consent for assigning the lease to any tenant intending to make large-scale changes depending upon the type of premises involved.

What liabilities will you have when assigning a lease?

It is important to recognise that the assignment of a lease to a new tenant does not automatically exempt you from all liabilities related to that tenancy going forwards. In fact, once the lease assignment is complete you can still be liable should the new tenant miss any payments or otherwise break the terms of their contract.

Exactly what you will be liable for depends on when your lease began. If your lease began before January 1996 you will remain liable for all payments by any subsequent tenants – even if the lease is assigned several more times after you. This is called “privity of contract”.

For leases that began after January 1996, you will be required to sign an Authorised Guarantee Agreement . This means you guarantee payments for the next tenant, but not any further tenants.

Landlords can only claim payments of rent within six months of the money being due, and only after full notice has already been served to the former tenant.

What does lease assignment cost?

On the other hand, if the rent under the new lease is below the market rate, the new tenant may instead want to pay you a premium. If this is the case, you’ll need to make a decision on whether to charge VAT – or “opt to tax” – something that’s worth getting professional advice on.

A final charge to be considered is the cost of this advice. It is highly recommended to involve your solicitor when opting to pursue a lease assignment so as not to inadvertently break the terms of your contract and leave yourself open to court action. You should therefore also factor solicitors’ fees into your calculations when considering the cost of exiting your lease.

How to get out of a commercial lease – what are the alternatives?

Assignment of a lease is not the only way to get out of a commercial lease and depending on your circumstances and the contract you have with your current landlord, it may not always be the best option.

Some alternative ways to get out of a commercial lease early include:

Using a break clause

Some lease contracts include a “break clause” which offers both parties the opportunity to end the lease early in certain circumstances. Read your contract carefully to check if it contains a clause like this, and if it does, what terms and conditions are involved. Any time limits specified in the lease for giving of notice must be strictly followed.

Negotiating a lease exit

If your contract does not include a break clause, your landlord may still be open to you exiting the lease early. You would need to negotiate the specific terms of your exit and your landlord may require a pay-out to offset the inconvenience of having to market the property again.

Compared to lease assignment, negotiating an exit from your lease should provide a clean break with no further liabilities, but we would recommend seeking legal advice to confirm that you were exiting the contract cleanly.

Subletting the premises

A final option to consider when looking at how to get out of your commercial lease early is subletting. If your contract allows it, you can take on the role of landlord by finding and leasing your property to a new tenant.

You can use the rent payments from your new tenant to cover your own obligations, but in return you’ll be expected to take a hands-on role managing the property and dealing with the sub-tenant directly.

Need assistance with assignment of lease?

Exiting a lease early can be a complex process, whether you choose to do so by arranging the assignment of your lease or by one of the other means mentioned above.

Lease assignment is an effective way for tenants to get out of a commercial lease early. However, this can be a slow process and you will incur costs.

Contacting a solicitor at an early juncture is advisable so that you are appropriately advised at the outset of any key considerations and potential pitfalls. For example, even though you are selling the lease, you could potentially remain liable afterwards; this will depend on the age of the lease and whether you have entered into an authorised agreement or not.

Shakeel Mir is the Head of our Commercial Property department and has many years of experience in dealing with lease assignment.  He is based in our Amersham office but assists and advises clients all over the country.  In addition to office meetings, Shakeel offers remote meetings via telephone or video conferencing software so can assist you wherever you are based.

Make a Free Enquiry

If you are considering how to get out of a commercial lease or have any queries relating to any of the issues discussed in this article, please get in touch with Shakeel by calling 0800 086 2929 , emailing [email protected] or completing our Free Online Enquiry Form .

The content of this article is for general information only. The information in this article is not legal or professional advice. If you require legal or professional advice you should obtain independent expert advice from qualified commercial property solicitors such as those within our firm .

Call us 24/7 on 0800 086 2929 , email  [email protected] , or complete our Free Online Enquiry Form to arrange a free, no-obligation discussion and let us explain your legal rights and options.

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Assigning a tenancy

Assignment is the legal term used when a tenant passes on their secure tenancy to another eligible person or "assignee". You can only assign your tenancy with the approval of Islington Council.

What is tenancy assignment?

You must get our approval and comply with a number of rules before we agree to an assignment. The rules are laid down in law and council policy.

• You must be the original tenant. If you took over your tenancy because the previous tenant died or if the previous tenant gave their tenancy to you it is likely you will not be able to pass on the tenancy again.
• Grandparent
• Half brother
• Half sister
• Foster child
• Both you and the assignee must be living at your tenancy address and it must be your only or main home. Unless the assignee is a joint tenant, your husband/wife or civil partner they must be able to prove they have been living with you at your home for at least the past 12 months.
• You can only pass your tenancy to one person.

Applying to assign your tenancy

You will need to supply the following documents to us:

• Completed Application to Assign a Tenancy form and Form of Authority/Consent.
• Proof of your and the assignee’s identity (e.g. birth certificate, current passport etc.)
• Proof of the assignee’s relationship with you (e.g. birth and/or marriage certificates proving they are your partner or mother or niece etc.)
• Proof that you and the assignee live in your home now.
• Unless the assignee is the joint tenant, your husband/wife or civil partner then they have to show they have been living with you for 12 months by providing at least five separate and different items of official paperwork (e.g. benefit paperwork, bank statements, utility bills etc.)

If we approve your assignment, we will write to you and the assignee asking you both to attend an appointment to formally pass the tenancy from you to the assignee. The date your tenancy is passed to the assignee will normally be the Monday following this appointment and the assignee will become liable for the rent and all other tenancy conditions from this date.

Reasons we may not approve your tenancy assignment

There are a number of reasons why we may not allow you to pass your tenancy to another person:

• You received your tenancy when the previous tenant died or if they passed it on to you.
• If you have a court order against you then you may have lost the right to pass on your tenancy to someone else, in addition to other tenancy rights.
• If you have caused anti-social behaviour or harassment we might be in a position to refuse your request.
• If you are currently in the process of buying your home or moving to another Islington Council property or if you have been nominated by Islington to another landlord for housing or if you are in the process of doing a mutual exchange with another tenant.

I have rent arrears – can I still apply to assign my tenancy?

We will ask you to clear your rent account.  If you are not able to clear your arrears we will only allow you to pass on your tenancy if you make an agreement, acceptable to Islington Council, to clear your debt by instalments.  Alternatively, the assignee can agree to take responsibility for the arrears. 

What happens if I leave someone in my home and I move out?

If you leave your home and have no intention to return, the security of your tenancy is lost. If you give your keys to someone else, even if that person may have been entitled to take on the tenancy, Islington Council will consider them to be an unauthorised occupier and will take legal action to evict the person and take back possession of the property.  While the person remains in the property until we receive the keys we will charge them for its use and

How can I apply to assign my tenancy?

To apply to Islington Council to consider your tenancy assignment, you should speak to your Tenancy Management Advisor by contacting your area housing office.

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Assignment and succession of tenancy

Produced in partnership with morayo fagborun bennett of gatehouse chambers, introduction.

This Practice Note discusses assignment and succession of tenancy in England, with reference to the Housing Act 1985 (HA 1985), the Localism Act 2011 (LA 2011) and the Housing Act 1988 (HA 1988). It explains that assignment of a secure periodic tenancy is prohibited except in three situations. With effect from 1 April 2012, a registered social landlord can include express provisions in their tenancy agreements granting additional succession rights for assured tenants.

As of 1 December 2022, tenancies and licences of dwellings in Wales are governed by the Renting Homes (Wales) Act 2016 (RH(W)A 2016) (subject to certain exceptions). Secure tenancies may no longer be created and existing secure tenancies will convert automatically into occupation contracts. The terms of existing and new tenancies must be considered in the context of RH(W)A 2016 in order to establish whether or not they are occupation contracts for the purposes of RH(W)A 2016 and, if so, what kind of occupation contract. Tenancies and licences which are occupation contracts must comply with the comprehensive provisions of

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Gatehouse Chambers

Morayo specialises in all areas of landlord and tenant and property law. Recent cases include Charalambous v Ng [2014] EWCA Civ 1604 (tenancy deposit schemes), Coope v Ward [2015] EWCA Civ 30 (easement of support and measured duty of care) and Farah v Hillingdon LBC [2014] EWCA Civ 359 (intentionality and homelessness). She also regularly acts in disrepair and dilapidation proceedings, service and estate charge disputes and residential and commercial lease renewals. Morayo’s public law practice includes community care, Court of Protection, deprivation of liberty, welfare benefits, homelessness, judicial review and discrimination law. Recent cases concerned the community care needs of life sentenced prisoners, a deprivation of liberty case on the interface between the MCH and MCA and a test case on the lawfulness of the current practice adopted by decision makers in Employment Support Allowance assessments. Morayo’s commercial practice covers contractual disputes in the property and employment sectors advocating in the courts and tribunals. A speciality is cases involving multiple discrimination complaints. Morayo came to the law with a background in philosophy and theology, graduating from St Hilda’s College, Oxford in 2000 with a 2:1. Her Masters in Crime, Human Rights and the International Community achieved a Distinction. She attained a commendation in the Common Professional Examination and was graded outstanding on the Bar Vocational Course in 2004.

Related legal acts:

• Housing Act 1985 (1985 c 68)
• HOUSING ACT 1988
• Housing Act 1988 (1988 c 50)
• Housing Act 1996 (1996 c 52)
• Law of Property (Miscellaneous Provisions) Act 1989 (1989 c 34)
• Law of Property Act 1925 (1925 c 20)
• Localism Act 2011 (2011 c 20)
• Matrimonial Causes Act 1973 (1973 c 18)
• Rent Act 1977 (1977 c 42)

Key definition:

Assignment definition, what does assignment mean.

An assignment is 'an immediate transfer of an existing proprietary right, vested or contingent from one party to another'. Assignments can occur by consent or by operation of law.

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Passing on a tenancy

Use this guide to help you when passing on your tenancy.

Assignments

An assignment is where a tenancy has been legally transferred from one person to another and must be done by a legal document called a Deed of Assignment.

Examples of where a tenant may wish to assign their tenancy to someone else include when a person moves into a residential care home or to another country.

A secure tenancy can only be assigned:

• to a person who could have succeeded the tenancy on the death of the tenant
• in a property transfer order under matrimonial and family legislation
• in a mutual exchange.
• Assigning your tenancy counts as a ‘succession’ and only one succession is allowed.

This means that:

• if you gained the tenancy through an assignment or succession you can't pass it on
• the person who you assign the tenancy to can’t assign it or have it succeeded by someone else.

What to think about before you apply

We strongly advise that you take legal advice from the Citizens Advice Bureau or a solicitor as there are a number of matters to consider.

For example, if you assign your tenancy to someone else, you will lose all legal rights to the tenancy and you won’t be able to get them back. Make sure you’ve thought very carefully before assigning your tenancy to someone else and don’t be forced into doing it.

If you assign the tenancy and the new tenant asks you to leave, you could be left without a place to live, as we won’t have to find you a new home.

Assigning your tenancy could also affect how much housing benefit your household can get.

Why we wouldn’t approve your application

We won’t approve your application if:

• the person you want to assign to doesn't have the right to succeed to the tenancy if you were to die
• you don’t live with the person you want to assign your tenancy to or you’re not married or in a civil partnership with them
• your home is too big for the person you want to give the tenancy to
• you don’t make arrangements to pay any debts you owe us
• we think you’re being forced to apply against your will.

Assignment of Lease Explained

• December 1, 2023

Understanding the complexities surrounding the assignment of a lease is crucial for both tenants and landlords. Within the UK, various situations might compel a tenant to transfer their lease to another party. In this guide we will delve into the essentials, helping you understand every facet of a lease assignment.

What is an Assignment of Lease?

In the world of property management and real estate, the concept of an “assignment of lease” is fundamental. It involves a tenant, known as the assignor, transferring their entire legal interest in a property to another individual or entity, called the assignee. This process is common in both residential and commercial contexts and plays a significant role in maintaining the fluidity of property interests, especially in a dynamic market.

When a tenant signs a lease, they agree to specific commitments, including paying rent and maintaining the property, which are enforceable for a set period. However, various circumstances may prompt a tenant to vacate the property before the lease term expires. Herein lies the importance of the assignment of lease.

Through lease assignment, the original tenant can exit the property and pass on the responsibility to a third party, who then assumes the role of the tenant with all its incumbent responsibilities. It’s important to note that while the new tenant steps into the shoes of the original tenant, the lease terms remain unchanged.

For instance, if an individual rents a flat and later decides to move out before the lease’s expiration due to reasons such as relocating for a job or changing living situations, they may opt for an assignment of the lease. This strategy allows another person to take over the living space and adhere to the responsibilities under the original lease, ensuring that the flat does not remain unoccupied and the landlord continues to receive rent payments. This seamless transition can be especially beneficial in residential areas with high demand for housing, as it minimises financial instability for the landlord and provides immediate accommodation for those in need of a home.

Key Components of Lease Assignment

• Assignor and Assignee: The existing tenant (assignor) and the new tenant (assignee) are the primary parties in this agreement. Their willingness to transfer and assume the lease’s obligations, respectively, drives the assignment process.
• Landlord’s Role: While not a direct party to the assignment, the landlord plays a pivotal role. Most lease agreements stipulate that landlords must provide consent before any assignment takes place. This clause protects the landlord’s interests, ensuring the new tenant is reliable and meets the required standards.
• Legal Documentation: The process requires several legal documents, including the initial lease agreement and a deed of assignment. The latter must clearly articulate that all rights and responsibilities have been transferred to the new tenant. This precision prevents future disputes regarding the terms of the lease.
• Liabilities: The assignment of lease doesn’t inherently absolve the original tenant of responsibilities. Depending on the agreement’s terms, the assignor might remain liable if the assignee fails to fulfil the lease obligations. This potential continued liability underscores the importance of thorough assignee vetting.

The Legal Ground

The legality surrounding the assignment of a lease is rooted in UK property law. It necessitates compliance with various statutory requirements and often involves complex legal procedures. Consequently, parties usually engage solicitors to ensure that the assignment aligns with legal protocols, protecting the interests of all involved parties.

The assignment of a lease is a nuanced process, influenced by factors unique to each situation. Whether prompted by personal, business, or financial changes, lease assignments facilitate flexibility in property occupancy and use. Understanding this concept is crucial for tenants seeking an early exit from a lease, individuals looking for established lease properties, and landlords wishing to maintain continuous tenancy and income streams.

Understanding the Deed of Assignment of Tenancy

A “deed of assignment tenancy” is a legal document that evidences the transfer of lease obligations from the current tenant to another. It is an essential part of the lease assignment process, binding the new tenant to the terms stated in the original lease.

Landlord’s Checks Before Permitting Assignment of a Lease

The assignment of a lease, while beneficial in maintaining continuous occupancy and consistent rent payments, necessitates thorough due diligence on the part of the landlord. Before consenting to an assignment, it’s imperative for landlords to conduct comprehensive checks, mirroring the depth of evaluation done during the initial tenant screening process. These checks are crucial in mitigating potential risks and safeguarding the landlord’s investment.

Detailed Assessment of the Prospective Assignee

Landlords should ascertain the financial stability and reliability of the assignee. This assessment often involves:

• Credit Checks: This allows landlords to have a clearer understanding of the prospective assignee’s credit history, highlighting their ability to keep up with regular rent payments and financial commitments.
• Employment Verification: Landlords typically require proof of ongoing, stable employment. This verification helps ensure that the new tenant has a consistent income stream capable of covering the rent and other associated costs.
• References: Previous landlords or property managers can provide insights into the assignee’s behaviour, paying habits, and overall reliability. Personal references might also be necessary to form a more comprehensive view of the prospective tenant.

Review of the Assignee’s Intent

Understanding the prospective tenant’s reasons for seeking the property and their long-term intentions can provide reassurance. For instance, landlords should feel more comfortable knowing that the assignee plans to reside in the property for an extended period and doesn’t intend to sublet without permission or engage in unlawful activities.

Examination of Financial Documentation

Landlords may request documentation such as bank statements or savings accounts to further verify the assignee’s ability to afford the property. This scrutiny is particularly pertinent in higher-rent areas or for properties with higher maintenance costs.

Ensuring Contractual Compliance

It’s important for the landlord to confirm that the assignee understands and agrees to the terms set out in the original lease. The assignee must comply with all existing conditions, and any deviation needs to be negotiated with and approved by the landlord.

Legal Considerations

Given the legal complexities surrounding lease assignments, landlords often seek legal advice during this process. Lawyers can help ensure that the assignment adheres to local property laws, the original lease’s terms, and that the landlord’s interests are thoroughly protected throughout the transition.

By conducting these comprehensive checks, a landlord exercises due diligence, significantly reducing the likelihood of issues arising from the assignment of the lease. This meticulous approach helps maintain the property’s revenue stream, upholds community standards, and ensures the continued preservation and value of the property investment. It’s a proactive measure, providing the landlord with peace of mind that they are handing over their property to a reliable and responsible assignee.

Costs Involved in Lease Assignment

The process of lease assignment, while a practical solution for tenants looking to transfer their lease obligations, does entail various costs that both the assignor (original tenant) and assignee (new tenant) need to consider. These expenses contribute to a seamless transfer process, ensuring all legalities are properly managed, and all parties are adequately protected. Understanding these costs is essential as it prevents unexpected surprises and allows for a more transparent transaction.

Costs for the Assignor

• Advertising Costs: If the landlord does not immediately have a new tenant, the original tenant may need to advertise the property. This could involve online listings, printed materials, or hiring an estate agent to expedite the process, all of which incur costs.
• Tenant Screening Costs: The assignor might opt to conduct preliminary screenings of potential assignees, which include credit checks, reference checks, and other background investigations to ensure they’re presenting a reliable tenant to the landlord.
• Legal Fees: The legal intricacies of transferring a lease require the involvement of legal professionals. The assignor typically bears the cost for legal consultations, drafting the deed of assignment, and any related legal documentation.
• Landlord’s Administrative Fees: Some landlords charge an administrative fee for processing a lease assignment, covering the time and resources they expend to conduct their checks and modify their records.
• Potential Liability Costs: If the assignee fails to meet the lease obligations, and depending on the terms of the assignment, the original tenant may remain partially liable. This contingent liability could lead to future costs.

Costs for the Assignee

• Security Deposit: It’s standard practice for the new tenant to provide a security deposit before moving in. In some cases, the assignee reimburses the original tenant for the initial deposit, depending on its condition and any agreement between the parties.
• Advance Rent: The assignee may need to pay the first month’s rent in advance, similar to standard leasing arrangements.
• Legal Fees: Assignees also incur legal fees. They need legal counsel to review the terms of the lease, ensure the assignment is conducted correctly, and understand their new responsibilities and liabilities.
• Stamp Duty: Depending on the property’s value and the lease’s remaining duration, the assignee might need to pay Stamp Duty Land Tax (SDLT) on the premium or the rent of the lease.

Shared Costs

In some instances, both parties negotiate and equally share specific costs, such as those for legal consultations, to ensure fairness and mutual satisfaction in proceeding with the transaction.

Both assignors and assignees must factor in these expenses to accurately assess whether a lease assignment is a financially viable option. It is advisable to consult with real estate professionals and legal advisors to understand all potential charges fully. Having a clear, upfront understanding of these costs allows both parties to make informed decisions, ensuring a smooth, transparent, and fair transition process.

Does Assignment Create a New Tenancy?

No, an assignment does not create a new tenancy. It merely transfers the existing tenant’s rights and obligations to the new tenant, who then steps into the shoes of the original tenant under the same lease terms.

The Necessity of Legal Assistance

It is highly advisable to engage a solicitor during the assignment of a lease. A solicitor can provide necessary legal advice, prepare the deed of assignment of lease, and ensure compliance with various property and contract laws.

Deed of Assignment vs Tenancy Agreement

While they might sound similar, a deed of assignment is not the same as a tenancy agreement. The former refers to the document transferring existing lease rights to a new tenant, while the latter is a contract outlining the terms between a landlord and tenant for new occupancy.

Parties Involved in Signing the Deed of Assignment

The deed of assignment of lease is typically signed by the outgoing tenant, the incoming tenant, and sometimes, the landlord, especially when their consent is a prerequisite for the lease transfer.

Landlord’s Consent to Lease Assignment

A landlord can refuse to consent to assign a lease, but this refusal must be reasonable. Scenarios for justifiable refusal might include the prospective tenant’s inability to meet financial commitments or proposed use of the property that violates lease terms.

Lease Assignment vs Subletting

• Lease assignment involves the complete transfer of the tenant’s rights to another party.
• Subletting occurs when the tenant temporarily hands over the property rights to another party but retains some rights or eventually plans to return.

Financial Responsibilities in Lease Assignment

Typically, the outgoing tenant or the incoming tenant covers the costs related to the assignment of lease, such as legal fees, administrative charges, and any leasehold improvements. The specific arrangements may vary based on mutual agreements.

Assigning a Lease Without a Deed: Is It Possible?

No, a lease assignment must be evidenced by a deed to be legally binding. The deed of assignment tenancy is crucial as it protects the interests of all parties involved and provides legal clarity.

The Meaning of ‘Assignment’ in Rent Context

In the context of renting, ‘assignment’ refers to transferring the existing tenant’s lease obligations and rights to another party. The assignee assumes responsibility for rent payments and adherence to the lease terms.

Advantages of Assigning a Lease

There are several benefits associated with the assignment of a lease, including:

• Flexibility for the tenant needing to vacate the property before lease termination.
• Minimal interruption in rent payments for the landlord.
• Opportunity for another tenant to occupy the premises without having to negotiate a new lease.

Stamp Duty and Lease Assignment

Stamp duty on assignment of lease may apply depending on the premium paid and the lease’s yearly rent. It’s important to consult a solicitor to understand any potential tax implications.

Post-Assignment Liabilities for Tenants

After the assignment of a lease, the original tenant is generally released from future liabilities. However, they may remain liable if the new tenant defaults, depending on specific lease terms or if guarantees were provided.

Essential Documents for Lease Assignment

In the process of a lease assignment, several critical documents must be prepared, reviewed, and signed to ensure a legally binding transfer of rights and responsibilities from the original tenant (assignor) to the new tenant (assignee). These documents are crucial in defining the terms of the assignment, protecting the interests of all parties involved, and complying with legal standards. Here are the essential documents required for a successful lease assignment:

1. The Original Lease Agreement

• Before any transfer, all parties must review the original lease. It’s vital to understand any clauses or terms that could impact the assignment, such as conditions requiring the landlord’s consent for any lease transfer.
• The original lease agreement serves as the foundation for the assignment, outlining the terms and obligations that the assignee will need to adhere to.

2. Deed of Assignment of Lease

• This legal document formally transfers the lease obligations from the assignor to the assignee. It must clearly state the terms under which the lease is assigned, including any continuing liabilities of the assignor, if applicable.
• It should be comprehensive, detailing the rights and responsibilities of all parties and any guarantees provided by the assignor.
• The deed is usually drafted by a solicitor to ensure that it complies with legal standards and adequately protects everyone’s interests.

3. Landlord’s Consent to Assignment

• Most leases require the landlord’s formal approval for any assignment to occur. This document is the landlord’s written agreement, permitting the transfer from the current tenant to the new one.
• It may come with conditions the assignee must satisfy, which should be clearly outlined in the consent form.

4. Assignee’s Letter of Acceptance

• This document is proof that the assignee understands and agrees to the terms set out in the original lease and the deed of assignment.
• The letter may restate key lease terms for clarity and will affirm the assignee’s commitment to abide by all the lease conditions and responsibilities.

5. Legal Advisories

• Though not a formal part of the lease assignment, documentation of legal advice received by both the assignor and assignee (and possibly the landlord) is crucial.
• These advisories ensure each party has been informed of their legal rights and obligations, potentially offering protection in the event of future disputes.

6. Inventory List

• If relevant, an inventory list detailing the condition of the property, especially for furnished rentals, would be necessary. This document helps manage expectations and responsibilities concerning the property’s state and contents at the time of the assignment.

7. Proof of Assignee’s Financial Stability

• While not always formally part of the assignment documentation, evidence of the assignee’s ability to meet financial commitments (like bank statements or employment confirmation) often needs to be submitted to the landlord during the assignment process.

The process of assigning a lease is a complex legal transaction that requires strict adherence to procedural standards. These essential documents ensure that the assignment progresses smoothly, with clear understanding and agreement from all parties involved. Both assignor and assignee should seek legal counsel to ensure their interests are protected, and all documents are in order, further underscoring the importance of each document’s role in this pivotal real estate process.

Energy Performance Certificate (EPC) Requirements

Yes, an EPC is generally required for a lease assignment, especially if the building is to be sold or rented out. This certificate ensures that the property meets the necessary energy efficiency standards.

Registering an Assignment of Lease

Registration of an assignment of lease is crucial. It validates the change of tenant under the lease, making it legally binding and enforceable. This process usually involves submitting the deed of assignment to the appropriate land registry.

Timeframe for Assigning a Lease

Assigning a lease can take anywhere from a few weeks to several months, depending on factors like obtaining the landlord’s consent, the new tenant’s credibility, and the speed of legal processes.

Embracing the Benefits of Lease Assignment

Whether you’re a tenant seeking flexibility or a landlord desiring continued occupancy, lease assignment offers solutions that can cater to your individual needs, promoting ease and continuity in the leasing process.

If you’re considering a lease assignment, it’s paramount to seek professional advice to navigate the complexities involved. The information contained in this article should be used for information purposes only and should not be relied upon in place of specific legal advice.

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Transferring my tenancy, on this page.

We understand that there may be times when you may wish to transfer your tenancy to someone, for example if you are moving out of the home. Transferring your tenancy is called an assignment of tenancy.

The Housing Act 1985 gives you right to do this, however there are rules around this. You should always refer to your tenancy agreement to see if it allows you to transfer your tenancy. 

What is an assignment of tenancy?

An assignment is where a tenancy has been legally transferred from one person to another and must be done by a legal document called a Deed of Assignment. Examples of where a tenant may wish to assign their tenancy to someone else include when a person moves into a residential care home or to another country.

We would generally grant requests for assignments where the assignee would  have been a successor if the customer had died i.e., they were an eligible partner or relative.

Am I eligible to assign my tenancy?

You are only able to assign (transfer) your tenancy in the following circumstances:

You wish to transfer the tenancy to your husband or wife or civil partner or a person living with you as your husband/wife/civil partner, as long as the property is their main home.

You wish to transfer the tenancy to a member of your immediate family (parent, grandparent, child, grandchild, brother, sister, uncle, aunt, nephew or niece), as long as they have lived with you for at least 12 month.

Where there is no husband/wife/civil partner or immediate family member, it may be assigned to another member of your family, as long as they have been living in your home as their main home for the previous 12 months.

We will check your tenancy agreement to ensure an assignment can be permitted.

The tenancy can only be assigned where the rent account is clear and no other legal action is in process i.e. if you have received a notice of seeking possession, or there is a Possession Order or Suspended Possession Order on your tenancy.

How do I apply to transfer my tenancy?

You will need to check and confirm that you and the person you wish to transfer your tenancy to meet the requirements above.

You can apply to transfer your tenancy using the below form, providing all of the information and evidence needed to support us to make a decision.

What will we do when you request to transfer your tenancy?

We will review your request once we receive it to make sure that we have all the relevant information and evidence we need to make a decision.

If we have any questions, or need further information, we will contact you about this.

We will write to you to confirm the outcome of your request, explaining our reason if we are unable to change your name.

Apply to transfer your tenancy

Assignment of a Residential Tenancy

Tom Entwistle

Assignment is when an existing and ongoing tenancy is transferred from one tenant to another. The person who transfers the tenancy is the 'assignor'� and the person who the tenancy is transferred to is the 'assignee'�.The outgoing tenant transfers his rights and obligations under the tenancy to the incoming tenant through a legal process which involves a Licence to Assign Note 1 below), permission given by the landlord, and a Deed of Assignment (see Note 2 below) to formalise the process. Under the Law of Property Act 1925 any assignment must be completed by deed.Most tenancy agreements, if they expressly permit assignment at all, (most are either silent on the matter or expressly forbid it) will only allow this with the consent of the landlord . Further, under Section 15(1) of the Housing Act 1988 it is an implied term in all Assured Shorthold Tenancies (ASTs) that the tenant will not assign without the Landlord'�s Consent.So long as the AST agreement does not state that the landlords'� consent is required to assign, the landlord CAN withhold consent. Section 15(2) HA 1988 states that Section 19 of the Landlord & tenant Act 1927 (consents to assign not to be unreasonably withheld) does not apply to Assured Tenancies.It is quite rare for standard ASTs to be assigned as they are short term and a new tenancy agreement can be easily arranged and signed, though doing this gives any new tenant a full new term and a minimum of 6 months. I the case of joint tenancies , once one or more tenants leave the rental property this effectively brings the whole joint tenancy to an end. This is because, in law, a joint tenancy is seen as one tenant: they are all individuals, but as far as the law and the landlord is concerned they are one - " the tenant ".Signing up new joining tenants and the remaining tenants to a new agreement starts a new tenancy with a new minimum term of 6 months , which may not suit the landlord, especially with student lets, where periods need to align with therm times. This is where assignments come in. In the case of joint tenancies, and especially in the case of student lets during term times, where tenants may come and go, assignments can be a very useful device for landlords.The new tenant/s take over where the outgoing ones left off leaving the original tenancy untouched. However, great care is needed to ensure that the documentation is completed correctly, deposit arrangements are taken care of between the tenants, and any guarantors are kept fully informed of the changes to ensure their continuing liabilities are preserved.Even where the AST agreement expressly forbids assignment, with the landlord'�s consent assignment can be effected. With the landlord'�s consent therefore an AST can be assigned to anyone.On the other hand, where a tenant assigns without the landlord'�s consent (similar applies when a tenant sub-lets) the landlord could start possession proceedings against the true tenant and the assignee under Ground 12 HA 1988 schedule 2 for breach of contact.Further, once the true AST tenant leaves the rental property as his main residence, the tenancy reverts to a common-law tenancy, no longer under Housing Act protection, and subject to a notice to quit. The original tenant no longer has security of tenure and can be "evicted" along with the new "tenant" who is now an unathourised occupant .Notes: 1. License to Assign '� a document signed by the landlord giving the tenant (assignor) permission to assign.2. Deed of Assignment '� a legal agreement clearly marked as a Deed of Assignment, signed as a deed and independently witnessed.3. LandlordZONE� Combined Licence and Deed of Assignment� By Tom Entwistle, LandlordZONE� ID2010663If you have any questions about any of the issues here, post your question to the LandlordZONE� Forums '� these are the busiest Rental Property Forums in the UK '� you will have an answer in no time at all. �LandlordZONE All Rights Reserved - never rely totally on these general guidelines which apply primarily to England and Wales. They are not definitive statements of the law. Before taking action or not, always do your own research and/or seek professional advice with the full facts of your case and all documents to hand.

Tom Entwistle has invested in and developed commercial and residential properties since 1979.

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Deed of Assignment

Introduction.

Most of the time, when a tenant chooses to leave their property they will do so at the end of the fixed term of the tenancy and they will give you vacant possession of the property when they do.

However, sometimes one of your tenants will want to leave in the middle of a tenancy and the other remaining tenants will want to stay. In these circumstances if you do agree to allow them to leave the agreement, you can provide a new tenancy agreement that starts afresh, or you, the outgoing tenant, the remaining tenants and the replacement tenant can sign a deed of assignment. This will transfer the outgoing tenants interest in the property over to their replacement.

Deeds and signatures

As a deed this document must be signed by all parties but that signature must be witnessed by someone who is not a family member or a party to the agreement. The most appropriate way to do this is to have the witness be physically present in the room as the parties sign the deed.

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Practical law uk standard document w-024-5240  (approx. 17 pages).

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What Tied Pub Tenants Need to Know about Assignments

• Pubs Code Adjudicator

Updated 1 December 2023

Applies to England and Wales

© Crown copyright 2023

This publication is licensed under the terms of the Open Government Licence v3.0 except where otherwise stated. To view this licence, visit nationalarchives.gov.uk/doc/open-government-licence/version/3 or write to the Information Policy Team, The National Archives, Kew, London TW9 4DU, or email: [email protected] .

Where we have identified any third party copyright information you will need to obtain permission from the copyright holders concerned.

This publication is available at https://www.gov.uk/government/publications/what-tied-pub-tenants-need-to-know-about-assignments/what-tied-pub-tenants-need-to-know-about-assignments

How to use this factsheet:

This factsheet is for tied pub tenants who are considering whether to assign their tenancy and for prospective tenants who are intending on taking an assignment.

It provides information to support tenant understanding. It is not a substitute for the Pubs Code legal framework.

Our website also contains other useful information about accessing your Pubs Code rights: www.gov.uk/pca .

I am an existing Tied Pub Tenant

What information must my POB give me at the start of my tenancy about assignment?

What happens when I tell my POB that I intend to assign my tenancy?

What happens if I need my POB’s agreement to assign my tenancy?

I am thinking of taking an assignment

What must the POB do if I am thinking of taking an assignment?

What happens if the existing tenant needs the POB’s agreement to assign the tenancy?

Information about the tenancy

Pubs entry training

Independent advice

At a glance….assignments

The pub-owning business (POB) must tell the tied pub tenant (TPT) before they enter into their tenancy whether it can be assigned and what procedures they and the POB must follow.

Once a TPT notifies the POB that they intend to assign their tenancy, the POB must provide certain information to the TPT. It must also explain to the TPT and the proposed assignee the implications of the assignment for them both. If the POB needs to agree to the assignment, it cannot do so unless it is satisfied that the proposed assignee has been provided with certain information and advice.

This factsheet sets out the information that the POB must provide to the TPT and to the proposed assignee and what it must be satisfied of before agreeing to the assignment.

Terms and abbreviations

1. What information about my assignment must my POB give me at the start of my tenancy?

See Pubs Code – Paragraph 21 of Schedule 1

Before you begin your tenancy, your POB must tell you whether it can be assigned.

If it can, your POB must give you information about the procedures it must follow where you ask for an assignment. It must also tell you the procedure you must follow to assign your tenancy.

2. What happens when I tell my POB that I intend to assign my tenancy?

See Pubs Code – Regulation 12

When you notify your POB that you intend to assign your tenancy, your POB must do the following as soon as reasonably practicable:

Explain to you and the proposed assignee the implications of the assignment for both.

Give you information in relation to the following:

The tenancy you are assigning - this information is outlined in Schedule 1 to the Pubs Code . If you received this information before you started your tenancy, it only has to provide any information that has changed.

Any fees you need to pay in relation to the assignment.

Any dilapidations it requires you to remedy before, or as a condition of, assigning your tenancy.

For information about dilapidations under the Pubs Code see PCA’s Repairs and Dilapidations factsheet .

3. What happens if I need my POB’s agreement to assign my tenancy?

Before your POB can agree to you assigning your tenancy, it must be satisfied that the proposed assignee has received certain information about the tenancy, including in relation to any investment agreement.

It must also be satisfied that the proposed assignee has been advised to complete pubs entry training and seek independent advice.

For more information about what the POB must do in respect of the proposed assignee, see next section: I am thinking of taking an assignment.

✖ The POB must tell you and the proposed assignee as soon as reasonably practicable if it does not agree to the assignment.

4. What must the POB do if I am thinking of taking an assignment?

Where the TPT notifies the POB that it intends to assign the tenancy (and the terms allow for it) the POB must explain to you and the TPT the implications of the proposed assignment for you both. It must do this as soon as reasonably practicable.

5. What happens if the existing tenant needs the POB’s agreement to assign the tenancy?

Before the POB can agree to the assignment, it must be satisfied of the following:

• You have received information about the tenancy, including any investment agreement between the TPT and POB and the effect on your Code rights.
• You have been advised to complete pubs entry training (except where you already have suitable experience as specified in the Code).
• You have been advised to seek independent advice.

Please see further details below:

6. Information about the tenancy

A POB must be satisfied you have received the information in Schedule 1 to the Pubs Code before it can agree to you taking the assignment.

This information includes:

• The Pubs Code and any code of practice the POB may have for dealing with tied pubs.
• Information about the type of tenancy.
• A full and clear description of the premises and information about fixtures and fittings.
• Information about the respective maintenance and repair obligations of you and the POB.
• Obligations in relation to the purchase of tied products and services.
• Whether the tenancy may be assigned or sold, and relevant procedures for you and the POB.
• The advice, support and assistance available to you during the tenancy, circumstances when the POB may be willing to amend its standard terms, and the events which entitle you to ask for the Market Rent Only option.
• Responsibilities of the POB/ you regarding insurance.
• Arrangements for paying rent and deposits.
• Information about your obligations under Transfer of Undertakings (Protections of Employment) Regulations 2008.
• Procedures for where you breach the tenancy, or where the POB breaches the Code.

If the TPT and POB have entered into an investment agreement (as defined in the Pubs Code) the POB cannot agree to the assignment unless it is satisfied you have been:

• given a copy of the investment agreement; and
• informed in writing about how it affects your right to request a rent assessment or offer of an MRO option

For more information, please refer to the PCA’s factsheets on the Investment Exception , Rent Assessments and Rent Assessment Proposals and MRO Rights

7. Pubs entry training

A POB must be satisfied you have been advised to complete Pubs Entry Training before it agrees to you taking on the assignment - unless at least one of the following apply:

• You operate at least one other tied pub (that is not operated under a short agreement).
• You can show you have at least three years’ relevant business management experience.
• The POB has previously granted you a tied tenancy (other than a tenancy which is a short agreement).

8. Independent advice

A POB must be satisfied you have been advised to seek independent advice before it can agree to you taking on the assignment. This includes advice from a qualified surveyor with professional experience relating to tied pubs.

✔ If the POB agrees to the assignment, on completion you will become a TPT with rights under the Pubs Code.

For more information about Pubs Code rights, please refer to the PCA’s published factsheets .

 ✖  If the POB does not agree to the assignment, it must tell you and the existing tenant as soon as reasonably practicable.                                         

Questions about this factsheet

For general queries about the information in this factsheet, you may contact our enquiry service.

Please note, we can provide information about your rights, the Code and our processes. We cannot advise you about your case.

Complete our online enquiry form

Email: [email protected]

Call 0800 528 8080 to request a call back

This factsheet provides information to support tenant understanding. It is not a substitute for the Pubs Code framework.

You may find it helpful to take independent professional advice before making any decisions that may affect you and your business.

Find out more

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access other PCA factsheets in the series: ‘What Tied Pub Tenants Need to Know’

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UK: Legal Terms Explained: Assignment

What is assignment?

An assignment is the transfer of an interest from one party (" assignor ") to another (" assignee "). Assignment allows the assignor to transfer the benefit of a contract to the assignee. For example, the tenant of recently built office premises may transfer the benefit of a collateral warranty originally granted in its favour to a subsequent tenant.

Without express words, assignment usually involves an assignment of accrued and future rights. Clear words are required to assign only future rights under a contract ( Energy Works (Hull) Ltd v MW High Tech Projects UK and others [2020] EWHC 2537 (TCC)).

Assignment in a construction context typically refers to a legal or equitable assignment (although assignment can also occur by other means, e.g. operation of law). A key difference between legal and equitable assignments is that, in the case of a legal assignment, the assignee may enforce any assigned rights in its own name. In contrast, following an equitable assignment, the assignee would need to join the assignor in any action brought to enforce its rights.

To take effect as a legal assignment under English law, an assignment must comply with section 136(1) of the Law of Property Act 1925 (" LPA 1925 "). This requires the assignment to be: (i) in writing; (ii) absolute; and (iii) expressly notified in writing to the other party to the contract (" debtor "). In practice, parties tend to effect a legal assignment by way of an assignment agreement or deed of assignment to ensure that these requirements are satisfied.

However, if the parties fail to meet any of the requirements set out in LPA 1925 the assignment will usually have equitable effect. Equitable assignments may arise orally or in writing, and whilst recommended, there is no need to notify the debtor, provided a clear intention to assign can be established. Neither legal nor equitable assignments generally require the debtor's consent.

Assignment v novation

Although both terms are sometimes used interchangeably, assignment should be distinguished from novation. The most notable difference is that assignment only transfers the benefit of a contract (e.g. a warranty that works have been carried out to the required standard), whereas a novation transfers both the benefit and the burden (e.g. an obligation to pay for a service). As novation also requires the consent of all parties, it will typically be effected by a tripartite agreement between the novating party, the party to whom the contract is to be novated, and the counterparty to the relevant contract.

Some issues concerning assignment

• Restrictions on assignment – Unless there is an express prohibition in the contract, the parties will usually be free to assign the benefit of a contract. However, many standard form building contracts, including the JCT Design and Build Contract, prohibit assignment, or allow it only subject to certain conditions. In this regard, a developer may seek to amend the contract to reduce any restrictions on their ability to assign. In contrast, a contractor may seek to limit any rights to assign, for example by specifying the number of permitted assignments. This is often linked to the contractor's professional indemnity insurance terms which may provide for restricted cover in respect of successive assignments.
• Ineffective assignment where prohibited – If a party purports to assign a right in contravention of an assignment clause, the assignment will only be effective as between the assignee and the assignor, and will not be enforceable against the debtor.
• Means of assignment – A clause in a contract permitting assignment is not sufficient to effect an assignment. There must be a separate document or oral agreement to show the assignor's intention to assign ( Allied Carpets Group Plc v Macfarlane (t/a Whicheloe Macfarlane Partnership) [2002] EWHC 1155 (TCC)).

* This is an updated version of an article originally published as part of the 'Legal Terms Explained' series of Construction Law .

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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Free Deed of Assignment Tenancy Agreement Sample Form and Template

A Deed of Assignment is a legal document that transfers the ownership rights and interests of a property or asset from one party, known as the assignor, to another party, known as the assignee. It is commonly used in real estate transactions but can also apply to other types of assets such as intellectual property rights, stocks, or contractual rights.

The Deed of Assignment serves as evidence of the transfer of ownership and provides a clear record of the transaction. It outlines the terms and conditions of the assignment, including the details of the parties involved, a description of the property or asset being assigned, and any applicable terms or conditions.

Key elements typically included in a Deed of Assignment are:

• Parties: The document identifies the assignor (current owner) and the assignee (new owner) involved in the transaction. It is essential to provide accurate and complete information about both parties.
• Description of the property or asset: The Deed of Assignment should include a detailed description of the property or asset being transferred. For real estate, this includes the physical address, boundaries, and any relevant identifying information. In the case of other assets, it may include specific details such as patent numbers or stock certificates.
• Consideration: Consideration refers to the value or payment exchanged in return for the assignment. It can be in the form of money, goods, services, or any other agreed-upon consideration. The Deed of Assignment should clearly state the consideration provided by the assignee to the assignor.
• Terms and conditions: This section outlines the specific terms and conditions of the assignment. It may include any restrictions, warranties, or obligations that the assignee must adhere to after the transfer of ownership. These terms are mutually agreed upon by both parties and are legally binding.
• Signatures and witnessing: To make the Deed of Assignment legally enforceable, it requires the signatures of both the assignor and the assignee. Additionally, it is common to have witnesses present during the signing of the document to validate its authenticity.

Once the Deed of Assignment is signed and executed, it becomes a legally binding agreement between the assignor and the assignee. It ensures that the assignee acquires the rightful ownership of the property or asset, and the assignor relinquishes their ownership rights.

It is important to note that the requirements and legal implications of a Deed of Assignment can vary depending on the jurisdiction. Consulting with legal professionals or experts in the relevant field is recommended to ensure compliance with local laws and regulations.

When Can A Contract Be Signed As A Deed?

Under certain circumstances, a contract can be signed as a deed, distinguishing it from a standard contract. This is typically the case when the parties involved agree that no consideration, or payment, is necessary for the agreement to be valid.

As a more formal document, a deed follows a specific execution process. It requires the presence of a witness during the signing and in some cases, the use of a seal to authenticate the deed.

Is it Possible to Reverse a Deed of Assignment?

Once a deed of assignment has been executed and dated, it remains legally binding and enforceable until specific actions are taken. These actions include varying the deed using a deed of variation, surrendering it using a deed of surrender, or selling the property involved. If you intend to make changes to the original deed, it is more common to surrender the entire deed and then create a new deed with the desired modifications.

Which document do I require, a deed of assignment or a deed of trust?

When it comes to transferring the beneficial interest in land or property from one party to another, a deed of assignment is typically utilized. This document focuses solely on the assignment of the beneficial interest. On the other hand, a deed of trust can serve the same purpose but includes additional clauses that outline procedures for selling the property, among other things.

For most married couples seeking to assign their beneficial interest in an investment property, a deed of assignment is suitable for their needs.

Download a Deed of Assignment Tenancy Agreement Template

If you like a custom, completely personalised assignment agreement, use the link below. It takes about 5 min to create and you will end up with an agreement, tailored to your specific property.

Download CUSTOM Assignment Agreement

Alternatively, if you just want to download a generic deed of assignment of tenancy template, use the link below.

Download GENERIC Deed of Assignment of Tenancy Agreement

All content on this form and other forms for landlords published by Property Division are provided “as is”, with no guarantees of completeness, accuracy or timeliness, and without representations, warranties or other contractual terms of any kind, express or implied. Property Division does not represent or warrant that this letter or other material supplied by Property Division will be accurate, current, uninterrupted, error-free or omission-free.

Can a landlord refuse to assign a lease in the UK?

In the United Kingdom, a landlord’s ability to refuse to assign a lease is governed by the terms of the lease agreement and relevant landlord and tenant laws. The Landlord and Tenant Act 1988 (as amended) provides certain protections and guidelines for both landlords and tenants regarding the assignment of leases.

Here are some key points to consider:

• Lease Agreement Terms: The terms of the lease agreement will typically outline the conditions and requirements for assigning the lease. Some leases may include provisions that require the tenant to obtain the landlord’s consent before assigning the lease.
• Reasonable Refusal: The Landlord and Tenant Act 1988 imposes certain restrictions on a landlord’s ability to unreasonably withhold consent to an assignment. Generally, the landlord’s refusal must be reasonable, and they cannot arbitrarily deny permission. Common reasons for refusal may include concerns about the financial stability of the proposed assignee or if the assignee’s intended use of the property violates the terms of the lease.
• Landlord’s Costs: The landlord may be entitled to recover reasonable costs incurred in considering the request for assignment. These costs should be outlined in the lease agreement.
• Procedure for Seeking Consent: The lease agreement may specify the procedure that the tenant must follow when seeking the landlord’s consent for an assignment. It is important for tenants to adhere to these procedures to ensure compliance with the terms of the lease.
• Landlord’s Remedies: If the landlord believes there are valid reasons to refuse consent, they may have remedies available under the lease agreement or applicable law. However, these reasons must typically be specified in the lease.

It’s important for both landlords and tenants to be aware of the specific terms of the lease agreement and to understand their rights and responsibilities under the Landlord and Tenant Act 1988. If disputes arise, seeking legal advice is recommended to ensure compliance with the law and the terms of the lease. Additionally, the laws and regulations may be subject to change, so staying informed about any updates is advisable.

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Rights of secure tenants

Statutory rights of secure tenants around assignment and succession, subletting, exchange or management of the property.

Flexible tenancies

Lodgers and subletting, right to exchange, right to repair scheme and improvements, right to information, right to be consulted, right to buy/rent to mortgage, right to manage, right to assign, right to succeed.

The information on the statutory rights of secure tenants applies equally to tenants with flexible tenancies , unless advised otherwise.

A secure tenant has the right to take in a lodger. [ 1 ] They do not need the landlord's consent.

A secure tenant can sublet part of the home with the landlord's written consent. [ 2 ] The landlord cannot unreasonably withhold consent. Consent can be given retrospectively. [ 3 ]

A secure tenant cannot sublet the whole of the home; if they do, their secure status ends and cannot be regained. It is also a criminal offence. See Social housing fraud for more details on this and unlawful profit orders.

Secure tenants can exchange their homes with other secure tenants or with assured tenants of a private registered provider of social housing or of a housing trust that is a charity. [ 4 ] If a secure tenant exchanges with an assured tenant, the former becomes an assured tenant and the latter becomes a secure tenant.

Exchanges are affected by a formal document called a deed of assignment.

A flexible tenant can exchange their home with a secure tenant or an assured tenant of a private registered provider of social housing or of a housing trust that is a charity. [ 5 ]

The rules governing consent from the landlord are broadly similar to the above, however the swap is not affected by way of assignment; as such an existing flexible tenant who exchanges will get a new flexible tenancy of their new home.

These are often called mutual exchanges. Each tenant exchanging must get the permission of their landlord, but the landlord can only refuse permission on specified grounds. For more information on the rules see Assignment: Secure and flexible tenancies .

Some local authorities operate mutual exchange schemes to help tenants find someone to exchange homes with.

See Gov.uk: Swap your council or housing association home for more information on exchanging tenancies.

When a local authority does not carry out a 'qualifying repair' within a certain time limit, under the right to repair scheme the tenant may by able to make the local authority appoint a new contractor, and/or be paid compensation. [ 6 ] To be a 'qualifying' repair the landlord must decide that it will cost less than £250. There are other qualifying conditions.

A secure tenant must not carry out any improvements without the written consent of the landlord, however consent must not be unreasonably withheld and if it unreasonably withheld it is to be treated as given. A secure tenant of a local authority may have the right to be compensated for improvements that they carry out to their property. The compensation is only paid for certain types of improvement and can only be claimed at the end of the tenancy. [ 7 ] A flexible tenant does not have any right to carry out improvements or to receive compensation for improvements made. [ 8 ]

Local authorities must publish information for tenants about the terms of their tenancies, the right to buy and repairing obligations, and must provide written tenancy agreements. [ 9 ]

Local authorities must consult and take into account tenants' views on matters of housing management. [ 10 ] Housing management includes the maintenance, improvement or demolition of council properties held under secure tenancies, and services provided to council tenants. It does not include rent or service charges.

A local authority landlord must publish details of how (and on what) it will consult. It must make a copy of the consultation details available free of charge at its offices, and provide copies on demand (for which it may charge). Tenants must be allowed to make their views known to the authority within a specified period and the authority must consider any representations made to it under the consultation.

Tenants have a right to buy their property [ 11 ] as long as they meet the necessary criteria .

Secure tenants have the right to set up a Tenant Management Organisation (TMO) in order to manage their properties. [ 12 ]

Local authorities and TMOs must have regard to statutory guidance on the right to manage. [ 13 ]

Assignment is the transfer of an interest in a property (for example, a tenancy) to another person. The general rule is that secure tenancies cannot be assigned except in three situations: [ 14 ]

assignment by way of exchange

assignment following court orders in some relationship breakdown cases

assignment to a member of the tenant's family who would be a successor

The unauthorised assignment of secure tenancies is a criminal offence (see  Social housing fraud for more on this and unlawful profits orders).

Succession is where a tenancy is transferred on the death of the tenant. There can be only one statutory succession to a secure tenancy and certain conditions must be met. [ 15 ] Where there is a joint tenancy and one of the tenants dies, the remaining tenant(s) will succeed and there cannot be a further succession. [ 16 ]

Last updated: 16 March 2021

s.93(1)(a) Housing Act 1985.

s.93(1)(b) Housing Act 1985.

s.94(4) Housing Act 1985.

s.92 Housing Act 1985.

s.158 Localism Act 2011.

s.96 Housing Act 1985; Secure Tenants of Local Housing Authorities (Right to Repair) Regulations 1994 SI 1994/133.

s.97 and s.99A Housing Act 1985; Secure Tenants of Local Authorities (Compensation for Improvements) Regulations 1994 SI 1994/613.

s.155(3) and (4) Localism Act 2011.

s.104 Housing Act 1985.

s.105 Housing Act 1985; Bokrosova v Lambeth LBC [2015] EWHC 3386 (Admin).

s.118 Housing Act 1985.

s.27AB Housing Act 1985; Housing (Right to Manage) Regulations 1994 SI 1994/627; Housing (Right to Manage) (England) Regulations 2012 SI 2012/1821.

reg.4(3)(b) Housing (Right to Manage) (England) Regulations 2012 SI 2012/1821.

s.91(3) Housing Act 1985.

see ss.86A and 87 Housing Act 1985, as amended by s.160 Localism Act 2011 with effect from 1 April 2012.

s.88(1)(b) Housing Act 1985.