what is an assignment of tenancy

Navigating the assignment of a residential lease

A landlord can assign his leases to a new buyer of his building. Likewise, a tenant may be able to assign his lease if he needs to relocate. Find out how to assign your lease and what you can do to protect yourself when doing so.

by   Ronna L. DeLoe, Esq.

Ronna L. DeLoe is a freelance writer and a published author who has written hundreds of legal articles. She does...

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Updated on: December 4, 2023 · 3 min read

Assignment of lease by the tenant

Assignment of lease vs. sublease, assignment of lease by the landlord.

As a tenant, you may want to get out of your residential lease without paying the remaining rent. Likewise, if you're a landlord and sell your rental property, the buyer must now collect rent from the tenants, who may have no idea you sold the property. In both situations, assignment of a lease with a release for the tenant and assignment of leases with notice by the landlord accomplish these goals.

If you're the tenant and want to leave before the end of your lease term, you may be able to assign your lease to a third party if the landlord doesn't let you out of the lease. The third party then becomes the new tenant, who is bound by the terms of the original lease and pays rent to the landlord.

Most often, the lease won't permit assignment without the landlord's approval, but leases often state that the landlord cannot unreasonably withhold consent. As long as you produce a tenant who's shown a history of payment under prior leases and has been a model tenant, a landlord should consent to assignment.

The assignment of lease form should include places for the tenant-assignor, the new tenant-assignee, and the landlord to sign. If the master lease allows assignment, then the tenant doesn't need the landlord's permission; the tenant can sign an assignment of lease agreement without the landlord's signature.

If the landlord allows an assignment of the lease, you, as the tenant, also want him to sign a release stating that you're not responsible for the new tenant's failure to pay or for any damage she causes. Without such a release, you may still be liable for both.

When you, as the tenant, assign the lease, you sign an agreement that either reads “Assignment of Lease," “Lease Assumption Agreement," or “Assignment and Assumption Agreement." An assumption of the lease means that the new tenant assumes your obligations, such as paying rent and keeping the apartment in good condition.

An assignment of a lease transfers the tenant's entire rights in the property to a third party. With a sublease, on the other hand, the tenant transfers only a portion of the remaining lease. For example, if the original tenant has six months remaining on his lease and he gives the entire six months to a third party, the tenant is permanently assigning his rights to live on the property to the third party. If, however, the tenant allows that third party to stay at the premises for only three months, and the tenant intends to return after three months, he is subleasing the premises.

A landlord can assign the right to collect rent to someone who has purchased the property. An assignment of lease from the seller to the buyer allows the new landlord to collect rent from any and all current tenants in the building. The language in the landlord's assignment of lease agreement can include assignment of security deposits, if the parties agree to it. An assignment of leases by the landlord to the buyer affords protection to the buyer so he can collect rent.

An assignment of leases by the landlord to the buyer is meaningless if tenants aren't aware the landlord sold the property, which is why it's important for the assignor-landlord to give tenants proper notice. A notice of assignment of lease, which is a form signed by both the assignor-landlord and the assignee, or new landlord, is one way to give notice. Another way is to send a letter on the landlord's letterhead. Either way, the notice must include the new landlord's address and how rent is to be paid.

Both landlords and tenants who become assignors should sign a formal assignment of lease agreement, which an online service provider can prepare for you. If you're the tenant who has assigned your lease, try to get a release or you'll still be liable to the landlord. If you're the landlord, make sure you can count on the new tenant to pay the rent before you release the primary tenant from his obligations under the lease.

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Assignment of Lease

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What is an assignment of lease.

The assignment of lease is a title document that transfers all rights possessed by a lessee or tenant to a property to another party. The assignee takes the assignor’s place in the landlord-tenant relationship.

You can view an example of a lease assignment here .

How Lease Assignment Works

In cases where a tenant wants to or needs to get out of their lease before it expires, lease assignment provides a legal option to assign or transfer rights of the lease to someone else. For instance, if in a commercial lease a business leases a place for 12 months but the business moves or shuts down after 10 months, the person can transfer the lease to someone else through an assignment of the lease. In this case, they will not have to pay rent for the last two months as the new assigned tenant will be responsible for that.

However, before the original tenant can be released of any responsibilities associated with the lease, other requirements need to be satisfied. The landlord needs to consent to the lease transfer through a “License to Assign” document. It is crucial to complete this document before moving on to the assignment of lease as the landlord may refuse to approve the assignment.

Difference Between Assignment of Lease and Subletting

A transfer of the remaining interest in a lease, also known as assignment, is possible when implied rights to assign exist. Some leases do not allow assignment or sharing of possessions or property under a lease. An assignment ensures the complete transfer of the rights to the property from one tenant to another.

The assignor is no longer responsible for rent or utilities and other costs that they might have had under the lease. Here, the assignee becomes the tenant and takes over all responsibilities such as rent. However, unless the assignee is released of all liabilities by the landlord, they remain responsible if the new tenant defaults.

A sublease is a new lease agreement between the tenant (or the sublessor) and a third-party (or the sublessee) for a portion of the lease. The original lease agreement between the landlord and the sublessor (or original tenant) still remains in place. The original tenant still remains responsible for all duties set under the lease.

Here are some key differences between subletting and assigning a lease:

• Under a sublease, the original lease agreement still remains in place.
• The original tenant retains all responsibilities under a sublease agreement.
• A sublease can be for less than all of the property, such as for a room, general area, portion of the leased premises, etc.
• Subleasing can be for a portion of the lease term. For instance, a tenant can sublease the property for a month and then retain it after the third-party completes their month-long sublet.
• Since the sublease agreement is between the tenant and the third-party, rent is often negotiable, based on the term of the sublease and other circumstances.
• The third-party in a sublease agreement does not have a direct relationship with the landlord.
• The subtenant will need to seek consent of both the tenant and the landlord to make any repairs or changes to the property during their sublease.

Here is more on an assignment of lease here .

Parties Involved in Lease Assignment

There are three parties involved in a lease assignment – the landlord or owner of the property, the assignor and the assignee. The original lease agreement is between the landlord and the tenant, or the assignor. The lease agreement outlines the duties and responsibilities of both parties when it comes to renting the property. Now, when the tenant decides to assign the lease to a third-party, the third-party is known as the assignee. The assignee takes on the responsibilities laid under the original lease agreement between the assignor and the landlord. The landlord must consent to the assignment of the lease prior to the assignment.

For example, Jake is renting a commercial property for his business from Paul for two years beginning January 2013 up until January 2015. In January 2014, Jake suffers a financial crisis and has to close down his business to move to a different city. Jake doesn’t want to continue paying rent on the property as he will not be using it for a year left of the lease. Jake’s friend, John would soon be turning his digital business into a brick-and-mortar store. John has been looking for a space to kick start his venture. Jake can assign his space for the rest of the lease term to John through an assignment of lease. Jake will need to seek the approval of his landlord and then begin the assignment process. Here, Jake will be the assignor who transfers all his lease related duties and responsibilities to John, who will be the assignee.

You can read more on lease agreements here .

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Assignment of Lease From Seller to Buyer

In case of a residential property, a landlord can assign his leases to the new buyer of the building. The landlord will assign the right to collect rent to the buyer. This will allow the buyer to collect any and all rent from existing tenants in that property. This assignment can also include the assignment of security deposits, if the parties agree to it. This type of assignment provides protection to the buyer so they can collect rent on the property.

The assignment of a lease from the seller to a buyer also requires that all tenants are made aware of the sale of the property. The buyer-seller should give proper notice to the tenants along with a notice of assignment of lease signed by both the buyer and the seller. Tenants should also be informed about the contact information of the new landlord and the payment methods to be used to pay rent to the new landlord.

You can read more on buyer-seller lease assignments here .

Get Help with an Assignment of Lease

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Assignment of lease

How it relates to the law in british columbia canada.

In British Columbia, an assignment of lease is a legal document that transfers the rights and obligations of a lease from one party to another. The assignment must be in writing and signed by both the assignor (the original tenant) and the assignee (the new tenant). The landlord must also give their consent to the assignment. Under the British Columbia Residential Tenancy Act, a landlord cannot unreasonably withhold their consent to an assignment of lease. However, the landlord may require the new tenant to meet certain criteria, such as having a good credit score or a stable income. If the landlord unreasonably withholds their consent to an assignment, the original tenant may apply to the Residential Tenancy Branch for dispute resolution. The Branch may order the landlord to consent to the assignment or may terminate the tenancy agreement altogether. Overall, an assignment of lease is an important legal document in British Columbia that protects the rights of both tenants and landlords.

Impact on Business Owners in British Columbia

The assignment of lease impacts small businesses in British Columbia by allowing them to transfer their lease obligations to another party with the landlord's consent. This can be beneficial for small businesses that need to relocate or transfer their lease to another party. However, the landlord may require the new tenant to meet certain criteria, which could be a challenge for small businesses with limited resources. Additionally, if the landlord unreasonably withholds their consent to an assignment, small businesses may need to seek dispute resolution through the Residential Tenancy Branch, which could be time-consuming and costly. Overall, small businesses in British Columbia need to carefully review and negotiate the terms of an assignment of lease agreement to ensure that their rights and obligations are protected.

Potential Legal Risks, Legal Challenges, or Legal Pitfalls for Businesses in British Columbia

As a small business owner in British Columbia, it is important to be aware of the potential legal risks and challenges associated with the assignment of lease. This refers to the transfer of a lease from one tenant to another, and can occur when a business is sold or when a tenant wishes to sublet their space. One potential legal risk is that the landlord may not approve the assignment of lease. This can occur if the new tenant does not meet the landlord's requirements or if the landlord wishes to terminate the lease altogether. To avoid this, it is important to carefully review the lease agreement and any requirements for assignment before entering into any agreements. Another potential legal challenge is that the new tenant may not be able to fulfill the obligations of the lease, such as paying rent or maintaining the property. This can result in legal action being taken against both the new and old tenants. To mitigate this risk, it is important to thoroughly vet any potential new tenants and ensure that they have the financial resources and experience necessary to fulfill the lease obligations. Finally, it is important to ensure that all necessary legal documentation is in place when assigning a lease. This includes a written agreement between the old and new tenants, as well as approval from the landlord. Failure to properly document the assignment of lease can result in legal disputes and financial penalties. In summary, small business owners in British Columbia should be aware of the potential legal risks and challenges associated with the assignment of lease. To avoid or mitigate these issues, it is important to carefully review the lease agreement, vet potential new tenants, and ensure that all necessary legal documentation is in place. Seeking the advice of a legal professional can also be helpful in navigating this process.

BC Commercial Tenancy Act

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• 6 Things to Consider With an Assignment of Lease
• Market Updates

Since COVID-19 reached New Zealand, the number of assignments we have transacted has significantly increased. Landlord’s and Tenants have been approaching us seeking understanding and solutions regarding their leases and the obligations.

What is an assignment .

An Assignment is the transfer of an existing Lease; including all terms and conditions which have already been agreed between a Landlord and Tenant. This most commonly occurs when a business is sold or needs to relocate to smaller/larger premises. In the current economic environment we are working with an increasing number of Tenants looking to close their business, relocate, expand or downsize.

Before you start considering an assignment we recommend you speak with your current Landlord to advise of your current situation and communicate you plans. As always, we recommend you seek legal advice.

6 Things’ to consider with an Assignment

• Review your Lease – make sure you have a copy of your current Lease Agreement to understand the renewal dates, lease expiry and your obligations.
• Landlord approval – For an Assignment to proceed it is conditional upon the Landlord’s approval (10 working days), this includes if a change in business use is required for the incoming Tenant, which why we recommend having advanced communication with the Landlord about your situation.
• Cost – There are several costs which need to be considered; firstly your own Legal fees but you will also be liable for the Landlords legal fees, Agency fees if you are engaging a commercial real estate agent to help you find a replacement Tenant and lastly your cost to relocate.
• Reinstatement – If your business has made changes to property which might include painting, fit-out, damaged walls etc then these may need to be repaired, removed, or reinstated. It is important to have a clear understanding between all parties involved what is expected and that it is documented.
• Ongoing Liability – It is important to be aware that even though you may have assigned the Lease, you still remain liable from the Assignment date the end of lease, we would recommend you seek legal advise as to your options to limit your liability under the Lease.
• New Lease – As an alternative to assigning your lease, you could suggest to the Landlord that they enter into a new lease with the new Tenant. Of course the terms of this new lease would have to be favourable to the Landlord for them to agree.

Assignment and Assumption of Tenant's Interest (Commercial Lease Transaction) (Long Form) (NY) | Practical Law

Assignment and Assumption of Tenant's Interest (Commercial Lease Transaction) (Long Form) (NY)

Practical law standard document w-005-8949  (approx. 26 pages).

Assignment by Tenant and Withholding Consent

An assignment will rarely be seen in an assured shorthold tenancy. But, it's nevertheless possible. This article looks at case law regarding assignment and landlord's consent.

Introduction

A sub-letting of the whole term operates as an assignment. 

An assignment is different to a sub-letting because the estate in land is transferred from the first tenant to the new tenant. However, an assignment by a tenant is ineffective to pass the tenant's legal estate to the proposed assignees unless it is made by deed [ s52(1) Law of Property Act 1925  and _ Crago v Julian_  [1991] EWCA Civ 4].

A deed is not required if the landlord expressly or impliedly agrees to the assignees becoming the tenant and accepts him in place of the former tenant [_ Crago v Julian_  [1991] EWCA Civ 4], in which case it is not an assignment but surrender and re-grant of the tenancy. 

In our view, the Landlord and Tenant Act 1988 does not imply a term a tenant may assign or sub-let, and the Act only applies if there is a term allowing assignment with the landlord's consent.

However, according to the  Office of Fair Trading guidance on unfair terms , such a term absolutely prohibiting assignment would be contrary to the Unfair Terms Regulations - see page 107, for example.

Where a clause allows assignment subject to consent, a landlord may require the outgoing tenant to act as a guarantor for the new incoming tenant [ section 16 Landlord and Tenant (Covenants) Act 1995 ]. 

Assignment mainly occurs in commercial leases but can happen with a residential tenancy. Most of the case law quoted on this page refers to commercial leases, but there is no reason why it would be different to residential (except the last case at the bottom, where the damages awarded to the tenant would be nothing like those in that case).

There is no hard and fast answer to withholding reasonable consent, and the landlord must prove that it was appropriate to do so if they withhold consent—[s1(6)(c) Landlord and Tenant Act 1988].

Where a tenancy is a joint and several tenancy, all the tenants will probably need to consent to the assignment (and sign the deed) because it is very much like surrendering the previous tenancy and granting a new tenancy to a new tenant(s), (for example  Leek and Moorlands Building Society v Clark  [1952] 2 Q.B. 788). 

Where a deed is not done with all joint tenants signing, it is most likely that, in reality, the tenancy will be surrendered, and a new oral tenancy with the new composition of tenants will have been granted. 

About giving consent and the landlord not unreasonably withholding consent, the procedure that a landlord and tenant must follow is governed by the Landlord and Tenant Act 1988. Essentially, a tenant must make an application to the landlord; then, the landlord must respond in a reasonable time and give reasons. Once L has given written notice with reasons refusing consent, the period of suitable time for giving consent (required by s1(3) of the Landlord and Tenant Act 1988) has passed. L cannot subsequently change their mind and say that the change has occurred within a reasonable time of the request. 

The fact that there were subsequent attempts to negotiate permission to assign did not deprive T of the facts to its rights under the 1988 Act. 

"The expression 'within a reasonable time' may have entitled the landlords to a longer period in which to serve the notice than in fact they chose to take. Having chosen to serve a notice, however, they cannot subsequently be allowed to say, because they could have taken more time, that their refusal was ineffective as a refusal under the section. The purpose of written statutory notices such as those required by section 1(3) is to ensure that each party knows where the other stands and the refusal must be treated as such."  (Pill LJ at para 80).  Go West Ltd v Spigarolo  [2003] EWCA Civ 17; 07 EG 136; [2003] 2 WLR 986; [2003] 2 All ER 141.

Breach of the covenant as a reason for refusal

Landlords often think that they can refuse to consent to an assignment on the grounds that the intended use by the assignee would be a breach of covenant. They used to be wrong. The court's view was that as the landlord will have the same rights against the assignee as he has against the tenant, he would not be prejudiced ( Killick v Second Covent Garden Property Co. Ltd  [1973] 2 All ER 237, CA). However, the House of Lords has now overruled  Killick  and held that refusing in these circumstances is not automatically unreasonable. Instead, one must ask what the reasonable landlord would do in the case's particular circumstances. The court cannot and should not formulate strict rules regarding how a landlord should exercise their power of refusal. _ Ashworth Frazer Ltd v Gloucester City Council_  (No.2)[2001] UKHL 59: [2002] 05 EG 133.

A requirement for a prospective assignee to offer a guarantor of its covenants is often included in a lease as an absolute requirement in what is otherwise a fully qualified alienation covenant. There is no implied term that the landlord will act reasonably in requesting a guarantor. The most that can be said is that there is an implied term that any request for guarantors must be genuine to improve the landlord's financial security  Mount Eden v Towerstone  [2002] 31 EG 97; [2003] L&TR 4

Underletting

Let this case be a warning to any landlord who thinks they might like to make life difficult for a tenant seeking to assign or underlet.

The proposed assignee was suitable. After a reasonable time had passed for making a decision, Ls advisors made increasingly unreasonable demands on T. They even went on to write an outrageous letter in which they accused T of a long delay in furnishing replies. 

No decision was given because L, through its agents, was pursuing a deliberately obstructive policy designed to prevent the assignment from going through. 

The reason for doing this was that L thought that if the assignment could be prevented, it would be able to negotiate a surrender with a nil premium because of the problematic situation T would be in. 

Peter Smith J awarded £25,000 exemplary damages on top of his award under the Landlord and Tenant Act 1988 (which included damages for loss of the premium of £75,000 that it would have gotten from the assignee and a sum for loss of goodwill and turnover).

"It seems to me that it is important to mark the courts disapproval by a sum which will cause the Defendant to consider seriously its future conduct. The sum should not be excessive; it should be moderate. Moderate however, is to be assessed on the overall facts of the case and in the light of the conduct and the need to mark disapproval. It is important for landlords to appreciate that they should not resort to tactics to frustrate legitimate expectation of tenants by raising long and irrelevant queries designed to avoid giving the answer to the application for a licence to assign. This is the more so when the conduct is calculated to achieve an extraneous benefit for itself at the expense of the tenant. " (para 150).  Design Progression Ltd v Thurloe Properties Ltd  [2004] EWHC 324

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View Related Handbook Page

Sub-letting/assigning tenancies.

A landlord who has taken care to select a tenant by proper referencing and verification of suitability is unlikely to allow that chosen tenant to sublet, assign or transfer the tenancy to another without the landlord’s permission. In the past, tenancy agreements always tended to prohibit subletting or assignment.

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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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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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Tenants' rights to pass on their public and private sector tenancies, requirements and procedure for assignment.

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Tenancies can sometimes be passed from one tenant to another person, depending on the circumstances and your relationship:

• after a tenant has died, then a surviving spouse, partner or relative may be able to take over the tenancy and this is called “succession”; or
• while the tenant is still living, a transfer between household members is called “assignment”.

In both situations, the law is quite complicated and will depend on what sort of tenancy arrangement the tenant has, who the landlord is, when the tenancy was taken out, what the tenancy agreement says and how long the person who hopes to take over the tenancy has been living there.

Legal advice on assignment of a tenancy

In some situations, the tenant is allowed to assign the tenancy to another family member without the landlord needing to consent or agree to the assignment and the process can be dealt with by the drawing up of a deed.

In other situations, the landlord’s consent will be required. Some tenancies cannot be assigned at all, or only to a spouse or partner.

The law is complicated and expert legal advice will be required to work out if a tenancy can be assigned and to draw up the necessary documentation.

Legal advice on succession of a tenancy

If a landlord considers that there are no persons in the household who are entitled to succeed to the tenancy after the death of the tenant, they may serve a notice and then start possession proceedings for eviction.

Dealing with a bereavement of a loved one can be made even harder to cope with if you are also worried about losing your home.

Our team have extensive experience in advising bereaved family members about their rights to succeed to a relatives’ tenancy and can help at all stages including initial advice, putting the case to the landlord prior to proceedings and then representation in proceedings if necessary.

Funding the cost of legal advice

• In respect of assignment – Legal Aid is not available for advice and representation and these cases will need to be paid for privately. We are able to offer fixed fee packages for this work.
• In respect of succession rights – Legal Aid is available (subject to your means and the merits of the case) for advice and representation after a landlord has served a notice and has indicated that they intend to bring possession proceedings.

If no notice has been served, then legal aid is not available, and we will have to consider other ways of funding your case including a fixed fee package if appropriate.

Contact us for expert legal advice

Based near Liverpool Street station in East London, we advise people right across London and beyond. We offer a comprehensive service, from initial advice to representation at court. The housing team is a member of the Housing Law Practitioners Association.

Contact our housing and property lawyers  today, we are ready and waiting to help.

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Lou crisfield, rajea sultana, jasper blumenthal, kate downing, trainee solicitor.

Really happy with the service I received. No hidden costs, never dealt with a solicitor before but I’d say the price was worth it. A consultation at the beginning and I was kept informed of the process. Thanks again Lou & Kate Housing law client advised by Lou Crisfield and Kate Downing

The best thing about working with Miles & Partners was the fact that Rajea was so patient and attentive to all my concerns. She was honest but didn’t dismiss my feelings at all. Working with Rajea was such a blessing to me and family. If it wasn’t for her I don’t think we would have achieved the outcome we did and for that I’m so grateful. Housing law client, advised by Rajea Sultana

I cannot express our gratitude enough for how much Miles & Partners helped us. Jasper was the nicest and most patient young man who was willing to listen. Honestly, I cannot not thank him enough. Finally, by the end of the day I received a call from Rajea Sultana that she would like to take the case. As soon as I first spoke with Rajea, her initiative and energy immediately made me feel better and gave me some hope. Most importantly, Rajea is the nicest and most helpful person I have met in legal circles. Her professional, but also human approach truly makes a difference. She helped us with the case, she listened, and she was always available. Simply put – if you ever need help, Rajea is your person! Anu, housing law client advised by Rajea Sultana and Jasper Blumenthal

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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 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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Assign to a new tenant

Question & Answer

Another legal way to move out early is to assign your place to a new tenant.

Assigning means that the new tenant replaces you and takes over your rental agreement. The amount of rent and all other details of the agreement stay the same. You are not responsible if the new tenant causes damage or owes rent. But when you assign, you do not have the right to move back in later.

You must ask your landlord for permission to assign. It is best to ask in writing and keep a copy of your request. Your landlord must answer within 7 days.

If your landlord agrees to let you assign, they are allowed to charge you a fee. The fee can't be more than your landlord had to spend on things like a credit check, and advertising if the landlord found the new tenant.

Your landlord can refuse to let you assign to a particular person if there is a good reason. For example, if the person caused problems for a landlord in the past, such as damaging property or not paying rent.

Write a letter asking to assign

Use this tool to write a letter to your landlord asking if you can assign your unit.

If your landlord won’t let you assign to anyone

If your landlord won't let you assign at all or does not give you an answer within 7 days, you can move out with 30 days' notice .

To do this, give your landlord a Tenant’s Notice to End the Tenancy (Form N9) no later than 30 days after you asked for permission to assign.

In this situation, the usual rules about the timing of your notice do not apply. You can choose any termination date , as long as it is at least 30 days after the day you give your landlord the notice.

You can mail or fax the notice, or give it to your landlord in person. You can also give the notice to your landlord's agent. An agent can be someone who works for your landlord, for example, the superintendent or someone who works in the property manager's office.

NOTE: If you mail the notice you must do this 5 days before the day you need to give it to your landlord.

You might not have a right to assign if you live in

• subsidized housing
• a superintendent's unit
• housing provided by a school where you work or are a student

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Suspended Counterparty Program

FHFA established the Suspended Counterparty Program to help address the risk to Fannie Mae, Freddie Mac, and the Federal Home Loan Banks (“the regulated entities”) presented by individuals and entities with a history of fraud or other financial misconduct. Under this program, FHFA may issue orders suspending an individual or entity from doing business with the regulated entities.

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