Assignment of Lease

Frequently Asked Questions

The lease terms will determine whether or not you are able to assign (i.e. you are permitted to transfer all rights under your lease to another party). Before you do anything it is recommended that you obtain your own legal advice.

I want to sell my business / assign my lease. How do I go about this?

If you want to sell your business/assign your lease and your lease terms permit this, you must: 
• Find someone who is willing to pay the rent and take over the other obligations in the lease, and; 
• Request and obtain formal approval from the Council. 
• In order to consider the request, the following information from the person/business taking over your lease (the assignee) will be required as a minimum: 
• Full name and address. This information will be used to carry out credit checks; 
• Proof of identity; 
• New businesses/individuals must complete a Property Application Form, which can be requested from Corporate Property at: Newark and Sherwood District Council, Castle House, Great North Road, Newark, Nottinghamshire, NG24 1BY or email: property@newark-sherwooddc.gov.uk 
• Written agreement to pay rent monthly in advance by direct debit; 
• An appropriate rent/damage deposit (normally the higher of three month's rent or £1,000) to be held throughout the remaining term of the lease and any statutory continuation (if applicable). 

Please note, the District Council reserves the right to ask for additional information and set supplementary conditions to those referenced as a guide in this handbook. 

The Landlord may refuse consent to the assignment on a number of grounds such as, in the Landlord's opinion (acting reasonably) the prospective assignee, together with any guarantor, is not of sufficient financial standing to comply with the lease obligations. 

If the District Council agrees to the assignment it will be subject to a number of conditions 
such as: 
• The Council's legal and surveyor costs are paid. 
• All rent is paid up to date including the insurance premium and maintenance rent/service charge. 
• Entering into an Authorised Guarantee Agreement. 
• Any identified repair/decoration works are completed. 
• Any outstanding rent reviews are actioned. 
• All tenant obligations under the terms of the lease with regards to regulatory compliance are valid and up to date. 

Subject to the receipt of satisfactory references and confirmation of the above items, the Council's legal services will be instructed to prepare a licence to assign. When we confirm our agreement to an assignment and/or the licence has been issued, this does not mean that the lease has been transferred - you must arrange this with your assignee and notify the District Council. 

Until legal formalities are completed, you will continue to be the tenant of the premises and liable for the rent.

What if the proposed assignee cannot supply adequate references?

If satisfactory references cannot be provided, the Council will not consent to the assignment, unless the assignee is able to identify a guarantor who is willing to guarantee the payment of rent and compliance with the lease terms on their behalf. The guarantor will be subject to, and must pass, the same reference checks. 

I want to allow another business to occupy part or the whole of my premises. How do I go about it?

The lease terms will determine whether or not you are able to sub-let part or the whole of the premises or share occupation of the premises.

Before you do anything it is recommended that you obtain your own legal advice. 

If you consider you have the right to sub-let or share occupation with a third party, you need to make a written request to Corporate Property at: Newark and Sherwood District Council, Castle House, Great North Road, Newark, Nottinghamshire, NG24 1BY or email: property@newark-sherwooddc.gov.uk

The proposed assignee/subtenant wants to use the unit for a different purpose. Is this allowed?

If the assignment/sub-letting involves a change of permitted use, this will require separate formal consent.

Please note, you will be liable for the Council's professional fees associated with any request whether or not matters proceed to completion.