REAL ESTATE (SKILLS)
Unit 14
Guide
Assignment of a Lease
Context
In this Unit you will be concentrating on those issues surrounding the assignment of a
lease. As a trainee within a Real Estate department, you will be involved in the
drafting and negotiation of the licence to assign required by the landlord to give
consent to assignment of a lease from the current tenant to an incoming tenant. As
you are aware, once a lease has been granted it is no longer possible for the parties
to agree any amendments. However, there may be occasions during the life span of
the lease when the terms of the lease are no longer suitable for the existing
circumstances of the parties. In this Unit, you will be looking at such a situation –
when on assignment, the incoming tenant wishes to use the property for a different
purpose to that allowed under the terms of the lease. It is common in these situations
to deal with both landlord’s consent to the assignment and the variation of the terms
of the lease in the same document and you will be doing just that in this Unit.
As there is to be a transfer of a legal estate, the outgoing tenant and the incoming
tenant will also have to enter into a deed of transfer – in this case a TR1. You will be
required to use the drafting skills that you have been developing on this course to
draft this document.
Outcomes
By the end of this Unit you should be able to:
1. Draft the documentation required to give effect to a variation of a commercial
lease in the context of a leasehold assignment transaction.
2. Draft a transfer deed for the assignment of a commercial lease.
Unit Workshop Tasks
In this Unit you will complete tasks on:
1. Drafting a licence to assign incorporating a deed of variation of a lease.
2. Drafting a transfer for an assignment of a lease including modification of implied
covenants.
docs_811667483.docx 101 © The University of Law Limited
, Preparation
To prepare for this Unit Workshop you should:
1. Revise the work you did for Unit Workshops 11 and 13 on change of use and
lease assignment.
2. Read and make notes on the Practical Law Update entitled “Refusal of consent
to an assignment on the grounds of prospective breach of covenant” (3-101-
6051).
3. Complete the Preparatory Task.
Materials required for the Unit Workshop
1. Your notes on the Preparatory Task.
2. Your notes on your reading.
3. The Property Law and Practice textbook.
4. This Guide.
5. The Heads of Terms from Unit Workshop 12.
In the Unit Workshop you will be drafting a licence to assign and a TR1 using
precedents. If you want to produce your documents in a word-processed form, word
copies of the documents are available on ELITE in electronic form.
Consolidation after Unit Workshop
It is important that you consolidate your learning after the Unit Workshop.
In particular you should revise your answers to the Preparatory Task and the Unit
Workshop Tasks in the light of the feedback you have received in the Unit Workshop.
© The University of Law Limited 102 docs_811667483.docx
Unit 14
Guide
Assignment of a Lease
Context
In this Unit you will be concentrating on those issues surrounding the assignment of a
lease. As a trainee within a Real Estate department, you will be involved in the
drafting and negotiation of the licence to assign required by the landlord to give
consent to assignment of a lease from the current tenant to an incoming tenant. As
you are aware, once a lease has been granted it is no longer possible for the parties
to agree any amendments. However, there may be occasions during the life span of
the lease when the terms of the lease are no longer suitable for the existing
circumstances of the parties. In this Unit, you will be looking at such a situation –
when on assignment, the incoming tenant wishes to use the property for a different
purpose to that allowed under the terms of the lease. It is common in these situations
to deal with both landlord’s consent to the assignment and the variation of the terms
of the lease in the same document and you will be doing just that in this Unit.
As there is to be a transfer of a legal estate, the outgoing tenant and the incoming
tenant will also have to enter into a deed of transfer – in this case a TR1. You will be
required to use the drafting skills that you have been developing on this course to
draft this document.
Outcomes
By the end of this Unit you should be able to:
1. Draft the documentation required to give effect to a variation of a commercial
lease in the context of a leasehold assignment transaction.
2. Draft a transfer deed for the assignment of a commercial lease.
Unit Workshop Tasks
In this Unit you will complete tasks on:
1. Drafting a licence to assign incorporating a deed of variation of a lease.
2. Drafting a transfer for an assignment of a lease including modification of implied
covenants.
docs_811667483.docx 101 © The University of Law Limited
, Preparation
To prepare for this Unit Workshop you should:
1. Revise the work you did for Unit Workshops 11 and 13 on change of use and
lease assignment.
2. Read and make notes on the Practical Law Update entitled “Refusal of consent
to an assignment on the grounds of prospective breach of covenant” (3-101-
6051).
3. Complete the Preparatory Task.
Materials required for the Unit Workshop
1. Your notes on the Preparatory Task.
2. Your notes on your reading.
3. The Property Law and Practice textbook.
4. This Guide.
5. The Heads of Terms from Unit Workshop 12.
In the Unit Workshop you will be drafting a licence to assign and a TR1 using
precedents. If you want to produce your documents in a word-processed form, word
copies of the documents are available on ELITE in electronic form.
Consolidation after Unit Workshop
It is important that you consolidate your learning after the Unit Workshop.
In particular you should revise your answers to the Preparatory Task and the Unit
Workshop Tasks in the light of the feedback you have received in the Unit Workshop.
© The University of Law Limited 102 docs_811667483.docx
