Lease Assignment, Subleases and Surrenders
Documents for transferring a commercial or retail lease to a new tenant, subletting all or part of the premises, or ending a lease early by agreement - for outgoing tenants, incoming tenants and landlords.
- Assignment of lease and landlord's consent
- Sublease agreements
- Deeds of surrender
Changing a Lease
3 Ways a Lease Changes Hands or Ends
An assignment transfers the whole lease to a new tenant. A sublease keeps the original tenant in place and grants a separate lease underneath it. A surrender ends the lease early by agreement with the landlord.
Each needs the landlord's involvement, each affects who remains liable for the rent, and each is registered or noted on the title where the lease itself is registered.
Assignments often happen as part of a business sale. We handle them either as part of the sale or as a stand-alone matter.
What Is Involved
The Documents and the Issues
Each matter starts with the existing lease - what it permits and what it requires.
Assignment of Lease
A deed transferring the lease to the incoming tenant, with the landlord's consent, so the new tenant takes on the lease for the rest of its term.
Landlord's Consent
Most leases require consent. The request, the incoming tenant's information and the landlord's conditions are all part of the process.
Guarantees and Bank Guarantees
A new guarantor and a replacement bank guarantee for the incoming tenant, and the release of the outgoing tenant's where agreed.
Sublease
A lease from the tenant to a subtenant, sitting within the head lease. The original tenant stays liable to the landlord.
Deed of Surrender
Ending the lease early by agreement, including any surrender payment, the handback date and mutual releases.
Make Good and Final Accounts
What condition the premises are handed back in, and how rent, outgoings and the bond or bank guarantee are settled.
Step by Step
How an Assignment Runs
Subleases and surrenders follow a similar path.
Review the Lease
We check what the lease says about assignment, subletting and surrender, and any conditions the landlord can impose.
Request Consent
The request goes to the landlord with the incoming tenant's financial and experience information.
Prepare the Deed
We draft the deed of assignment, sublease or surrender, or review the landlord's version.
Guarantees and Security
New guarantees and a replacement bank guarantee are put in place for the incoming tenant.
Sign and Register
The deed is signed by all parties and lodged for registration where the lease is registered.
Settle the Accounts
Rent and outgoings are adjusted to the handover date and any make good is completed.
Our fixed fees for assignments, subleases and surrenders are set out on our pricing page.
View Our Fixed FeesDoes the Outgoing Tenant Stay Liable?
For NSW retail leases, the legislation sets a consent process with timeframes for the landlord and, in some circumstances, releases the outgoing tenant and its guarantors from ongoing liability once the lease is assigned. Whether that release applies depends on steps taken before the assignment.
Commercial leases that are not retail leases have no equivalent protection. The outgoing tenant's continuing liability turns on the lease and the deed of assignment, so the release terms need attention before anything is signed.
Our other leasing services.
Frequently Asked Questions
Can the landlord refuse consent to an assignment?
Who pays the landlord's legal costs?
What is the difference between an assignment and a sublease?
Can we end our lease early?
Does the deed need to be registered?
Do you act for landlords?
Changing or Ending a Lease?
Send us the lease and a summary of what has been agreed, and we will outline the documents and the steps.
Book a Free Consultation