Template for Assignment of Residential Lease with Explainer Guide

Are you a tenant looking to assign your lease to someone new?

Sometimes, circumstances mean that you have to exit your tenancy and find someone new to replace you. This can be a stressful procedure, especially if you’re under tough time constraints and are struggling to find a tenant.

However, this residential lease assignment template makes the legal process easy. If you want to do a transfer, you will need to create this document to keep the tenant-swap legal.

assignment of residential lease template

This example lets you select the parts that apply to your tenancy, and then exclude the bits that don’t matter. Afterwards, you can print it out as a PDF or Word doc, and use it to assign your lease to someone new.

Of course, there’s more to it than that, so keep reading to understand how to re-assign a residential lease for a new tenant, what this involves, and how to go about it.

What is an assignment of lease agreement for a residential tenancy?

It’s a document that allows for the transfer of a tenancy from one person to another. The old tenant (‘assignor’) hands over their responsibility for the property to the new tenant (‘assignee’), who then takes on the tenancy under the landlord.

Why use an assignment of lease template?

Assigning a lease is often an opaque process to most tenants, so it can be very time consuming to do the necessary research to produce a legally binding, accurate document. Our sample lease agreement is flexible, and automatically changes according to the requirements you select.

Ultimately, it leads to you creating a document quickly, and without costs to yourself. You won’t even have to engage a solicitor to make it for you.

Who creates the lease assignment template (UK)?

You may be wondering, “is it the tenant or landlord who is responsible?”. Generally speaking, the tenant arranges for the lease assignment papers to be drawn up – alongside the landlord’s input. For example, the landlord will likely have conditions for what should/should not be in the assignment, and any fees they intend to charge.

It’s possible for a landlord to use the free template linked here, as well as tenants. However, there will ultimately need to be co-ordination from both parties to ensure the transfer succeeds.

Why assign your lease to a new tenant in the first place?

There are multiple reasons, most to do with a change in life situation, or unexpected circumstances. For example:

  • Need to relocate elsewhere: The tenant has to move on to a different city or country for work, family, or personal circumstance.
  • Financial trouble: The tenant can’t afford to pay rent and needs to hand the tenancy to someone else.
  • Life changes: Moving in with a new partner or having another child might mean it makes sense to pass on the tenancy. There may be associated issues with space or accessibility that have become apparent.
  • End of university studies: Sometimes this applies to students finishing their university course (sometimes abruptly if they decide to quit).
  • Avoiding penalties: Assigning the lease helps avoid breaking the lease early and footing the bill.
  • Unexpected circumstances: Illness and family emergencies can be another reason why the tenant needs to relocate at short notice.

Residential assignment of lease vs sublease

You’ve probably heard of subletting more commonly than lease assignment – so which one is best, and which one makes sense for your circumstance?

Tenants who sublet tend to do this in order to supplement income for a temporary period of time before returning to the property and continuing the lease. On the other hand, a lease assignment is a permanent change to the tenant – one swaps with another.

For this reason, lease assignment is usually reserved for tenants who know that they will not be returning to the property, and it makes no sense to them anymore. It also makes sense for people who don’t want the added complexity of a subletting agreement (where they remain the liable tenant), and want a clean break from the property.

A subletting agreement document is formed between the tenant and subtenant with the landlord’s permission, while the residential lease assignment is done between the landlord, tenant and new tenant – so they work very differently. Obtaining the landlord’s permission can also be tricky when arranging a sublease.

It is worth reflecting on your situation to see whether you want to sublet instead – but be mindful of the pros and cons of each option.

Can a landlord refuse a lease assignment?

Yes. Landlords can usually veto the decision and withhold consent. This is commonly because of the lease assignment clause in the original tenancy agreement.

There are a few factors to consider here which will influence their decision. For example, if you have found a viable tenant with the right credentials to take over from you – and at short notice – the landlord will likely accept the proposal. The opposite is true if the tenant has a bad credit rating or poor rental history.

At the same time, many residential landlords will not want to affect their income by losing a tenant, so they often end up permitting assignment to a new tenant. It’s likely that they’ll be more comfortable with this than a subletting agreement, which is much messier than a simple tenancy swap.

Landlords may want to include certain stipulations in the residential lease assignment form. This can include certain liabilities to the outgoing tenant (for example, if the new tenant defaults on rent), as well as payment for admin and the trouble on their part.

Assignment of lease example – what to include

The assignment of lease form must include various key details. These will vary from situation to situation, but the essential parts are listed below. This Template for Assignment of Lease lets you pick and choose the bits you need.

  • Who is involved – Including names, occupations and addresses of the tenant, incoming tenant and landlord.
  • Property & lease details – The basic details of the original lease, and the property to which it refers must be included in the agreement.
  • Terms of residential lease assignment – This is where important details are included. For example, the date when the lease to the new tenant will start, the actual term of the lease, rent payment details and notes on any deposit monies.
  • Landlord’s consent to assignment of lease – There must be a clause stating that the landlord has provided consent to the lease transfer (Licence To Assign), as well as any conditions he has imposed.
  • Liabilities & obligations – These will be present both for the old and new tenant. The old tenant may have some liability for a period after the lease has been transferred, depending upon the landlord’s terms. Likewise, the assignment must state that the new tenant will take over the lease with all its associated responsibilities.
  • Representations & warranties – The old tenant must affirm that the lease is not currently breached, and that there are no unauthorised alterations made by them.
  • Several legal provisions – For example, the law governing the document (i.e. England, Scotland or Wales), and any indemnities between the landlord, old tenant or new tenant.
  • Signatures & witnesses – The lease assignment document must contain the signatures of the landlord, old tenant, new tenant and of independent witnesses.

Before you get started on your agreement, you’ll need to know the stipulations of your landlord, and any conditions they have placed upon the tenancy transfer. Once all these details are in place, it is easy to use the sample document to create your own agreement.

How to assign a lease for residential property

Here is a quick overview of how the lease assignment process works when a tenant wants to initiate the transfer to someone new:

  1. Review lease agreement/terms of the lease – Check assignment permissions and landlord consent requirements.
  2. Get landlord’s consent – Submit formal request with proposed assignee’s details and references, paying any fees that are due.
  3. Background check assignee – The landlord will usually conduct credit checks and verify references of the assignee.
  4. Draft assignment agreement – Create legal document with property details, parties involved, and transfer terms.
  5. Handle deposit – Arrange direct transfer or landlord refund; ensure proper registration under new tenant.
  6. Sign agreement – All parties sign and have document witnessed.
  7. Update records – Provide landlord with executed agreement copy for their records.
  8. Transfer possession – Hand over keys to new assignee.
  9. Notify authorities – Inform utilities and council tax of tenancy change.
  10. Verify deposit protection – Confirm security deposit is registered to assignee and protected.

assignment of residential lease template

How much does it cost to assign a lease?

Lease assignment is much more simple in the residential sector than the commercial sector, where fees can be considerably more varied and expensive.

At minimum, there are administrative fees paid by the original tenant to the landlord. This accounts for the time spent arranging their agreement, drawing up documents and contacting relevant authorities.

On top of this, there may be extra fees imposed by the landlord as a condition of transferring the existing lease. However, in a residential context, all fees charged must comply with the Tenant Fees Act 2019 and are somewhat restricted as a result.

Assignment of residential lease summary

Lease re-assignment is a great way to transfer your tenancy to someone new without incurring a penalty. If you feel like you understand the process, then why not get started on this FREE lease assignment template for residential tenancy? That way, you’ve got all the tools in place to proceed successfully (and without any cost to you).