“Assigning” and “subletting” may sound like interchangeable terms but are vastly different.
If you have space in your leased premises that you are thinking of assigning or subletting to another, you should make yourself familiar with the legal effects, the pros and the cons of both assigning and subletting.
What is an assignment of lease?
Where a tenant decides they no longer wish to be bound by a lease, they can transfer all of their rights and obligations under the Lease to another (with the landlords consent), who then assumes the position of tenant.
What is a sublease?
A Sublease enables a tenant who has spare space that is not being utilised to sublet that space to another.
The Sublease is essentially an Agreement between the sub-lessee and the existing tenant. The existing tenant will still ultimately be responsible to the landlord, even for defaults of the sub lessee, for example, non-payment of rent or damage to the premises.
For more information click here
If you have space in your leased premises that you are thinking of assigning or subletting to another, you should make yourself familiar with the legal effects, the pros and the cons of both assigning and subletting.
What is an assignment of lease?
Where a tenant decides they no longer wish to be bound by a lease, they can transfer all of their rights and obligations under the Lease to another (with the landlords consent), who then assumes the position of tenant.
What is a sublease?
A Sublease enables a tenant who has spare space that is not being utilised to sublet that space to another.
The Sublease is essentially an Agreement between the sub-lessee and the existing tenant. The existing tenant will still ultimately be responsible to the landlord, even for defaults of the sub lessee, for example, non-payment of rent or damage to the premises.
For more information click here
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