Procedure for business tenant to assign lease?

[esther henderson]

need advise on we have a business we whish to sell, commercial lease for 5 years with a 18mnth break clause. We have been tradeing for 7 mnths and have a profit makeing business which has done so since opening we now have decided to sell the business and the lease due to re location of family. How do we stand with the land lord as to the transfer of the lease to a new tenant ie: do we have to pay him a break in lease fee? or percentage in sale price - do we have to get him to ok the lease transfer over to a new business owner. Are we best to wait for the break clause to arrive then sell and hope the land lord takes on new owner in premises.

[Editor]

Most leases have provision for assignment and the landlord cannot unreasonably object or delay if you find a new tenant willing to take on the lease and buy the business.
There should not be any costs involved except the checking out (credit checks and referencing) of the new tenants and the legal costs of the landlord's solicitor in drawing up a licence to assign - you will be expected to pay these costs.
The landlord can object if the tenants don't pass the financial checks or the use does not meet the lease requirments - presumably the use will be the same.

[propman2]

do both you and landlord have a break option?

if landlord has probably best that you wait while period he can exercise it has passed ie he may have to serve notice to effect break and if he misses it lose that right...check lease

also is your lease under protection of landlord and tenant aact 1954? if so you have security of tenure and right to new lease on existing lease expiry, this will underpin value of your business.see your solicitor

[propman2]

do both you and landlord have a break option?

if landlord has probably best that you wait while period he can exercise it has passed ie he may have to serve notice to effect break and if he misses it lose that right...check lease

also is your lease under protection of landlord and tenant aact 1954? if so you have security of tenure and right to new lease on existing lease expiry, this will underpin value of your business.see your solicitor