Do you need to move out before the end of the tenancy? You can fully transfer your lease to another person with the Assignment of Tenancy Agreement.

An Assignment of Tenancy Agreement allows you to legally transfer your tenancy rights and obligations to another person. This process ensures a smooth handover while keeping the landlord informed and compliant with legal requirements.

In this guide, we’ll explain what an assignment of tenancy is, how it differs from subletting, the steps involved, and key legal considerations to help you navigate the process successfully. You can also find a free template to create your own Assignment of Tenancy Agreement.

What Is an Assignment of Tenancy Agreement?

An Assignment of Tenancy Agreement occurs when a tenant transfers their existing tenancy rights and obligations to another person (the assignee) with the landlord’s consent.

This means the original tenant (assignor) gives up their rights under the lease, and the new tenant (assignee) takes over all responsibilities, including rent payments and compliance with tenancy terms.

Situations when Assignment of Tenancy Occurs

• The tenant wants to move out before the tenancy term ends.
• The landlord allows the change but wants the tenancy to continue under new terms.
• A tenant transfers their lease as part of a business sale (common in commercial leases).
• A family member or partner takes over the tenancy due to personal circumstances.

Getting the Landlord’s Permission

One of the most important aspects of an assignment of tenancy agreement is obtaining the landlord’s consent. In most cases, tenancy agreements include a clause stating that the tenant cannot assign the lease without prior written permission from the landlord.

This ensures that the landlord has control over who occupies the property and can assess the new tenant’s suitability before approving the transfer.

Another crucial aspect is the outgoing tenant’s liability. Depending on the terms of the original lease and the assignment agreement, the outgoing tenant may still be held responsible if the new tenant fails to meet their obligations. In some cases, landlords require the original tenant to act as a guarantor, meaning they remain liable for rent arrears or property damages even after the assignment.

Also, the new tenant’s responsibilities must be clearly defined. The assignee inherits all obligations of the original tenancy agreement, including paying rent on time, maintaining the property, and complying with any existing lease conditions. It is essential for the new tenant to thoroughly review the terms of the lease to understand their duties before accepting the assignment.

Assignment vs Sublet

When a tenant needs to leave a rented property before the lease ends, they typically have two options: assignment or subletting.

While both involve transferring occupancy to another person, they differ in terms of responsibility and legal obligations. Understanding the distinction between these two arrangements is crucial for both tenants and landlords to ensure compliance with the tenancy agreement and avoid potential disputes.

Below, we explore the key differences between assignment and subletting, including their implications for all parties involved.

Assignment Fully Transfers the Lease

Assignment occurs when the original tenant fully transfers their lease to another person (known as the assignee). In this case, the new tenant takes over all rights and responsibilities of the tenancy, including rent payments and maintenance obligations.

Once the assignment is complete, the original tenant is usually no longer involved in the agreement and has no further obligations unless otherwise stated in the lease or assignment terms.

This is a permanent transfer of the tenancy, meaning the assignee becomes the new legal tenant.

The Original Tenant Responsible for the Lease in Sublet

Subletting, on the other hand, is different because the original tenant remains responsible for the lease while renting out part or all of the property to another person (known as the subtenant).

The original tenant (or sublessor) still holds the primary tenancy agreement with the landlord and is accountable for rent payments, property upkeep, and any breaches of the lease.

If the subtenant fails to pay rent or causes damage, the original tenant is still liable to the landlord. Subletting is often used when a tenant needs to move temporarily but intends to return before the lease ends.

How to Assign a Tenancy Agreement?

Assigning a tenancy agreement involves legally transferring the rights and responsibilities of an existing lease to a new tenant. This process requires careful planning and adherence to legal requirements to ensure a smooth transition.

Both the outgoing tenant (assignor) and the incoming tenant (assignee) must follow specific steps, including obtaining landlord approval and drafting a formal agreement.

Step-by-Step Instructions

Below is a step-by-step guide to correctly assigning a tenancy while protecting the interests of all parties involved.

1. Check the Lease Terms – Ensure the tenancy agreement allows for an assignment.
2. Seek Landlord’s Approval – Get written consent from the landlord.
3. Draft a Deed of Assignment – This document should outline all terms, including the handover date and responsibilities.
4. Execute the Agreement – Both parties (assignor and assignee) must sign the agreement in the presence of witnesses.
5. Notify Relevant Authorities – Inform the landlord, utility providers, and any other stakeholders about the change.

Free Template for Assignment of Tenancy Agreement

Below is a basic template for a Deed of Assignment of Tenancy Agreement that you can customise for your needs.

DEED OF ASSIGNMENT OF TENANCY AGREEMENT

This Deed of Assignment is made on this ___ day of ________, 20, by and between:

[Assignor’s Full Name], residing at [Assignor’s Address] (hereinafter referred to as the "Assignor"), being the current tenant of the premises described below; and

[Assignee’s Full Name], residing at [Assignee’s Address] (hereinafter referred to as the "Assignee"), who agrees to take over the tenancy.

WHEREAS:

The Assignor is the current tenant under a tenancy agreement dated [Original Tenancy Start Date] (the "Tenancy Agreement") with [Landlord’s Name], the landlord of the property located at [Property Address].

The Assignor wishes to assign all their rights, title, and interest in the Tenancy Agreement to the Assignee, and the Assignee agrees to take over these obligations.

The Landlord has provided written consent to this assignment as required under the terms of the Tenancy Agreement.

1. ASSIGNMENT

The Assignor hereby assigns, transfers, and conveys all their rights, duties, and obligations under the Tenancy Agreement to the Assignee, effective from [Assignment Start Date] (the "Effective Date").

2. ACCEPTANCE BY ASSIGNEE

The Assignee agrees to accept this assignment and assumes all responsibilities, duties, and obligations under the Tenancy Agreement from the Effective Date, including but not limited to:

Payment of rent in the amount of £[Rent Amount] per [Payment Frequency], due on [Due Date].

Compliance with all terms, conditions, and covenants stated in the original Tenancy Agreement.

3. LIABILITY OF THE ASSIGNOR

☐ The Assignor shall have no further liability after the Effective Date.
☐ The Assignor shall remain liable for any breach of the Tenancy Agreement by the Assignee.

(Choose the applicable option by marking with an "X")

4. LANDLORD’S CONSENT

The Landlord, [Landlord’s Name], has reviewed and consented to this assignment as evidenced by their signature below.

5. GOVERNING LAW

This Deed of Assignment shall be governed by and interpreted in accordance with the laws of [Applicable Jurisdiction, e.g., England and Wales].

6. SIGNATURES

Assignor:
Signature: ________________________
Name: [Assignor’s Full Name]
Date: ________________

Assignee:
Signature: ________________________
Name: [Assignee’s Full Name]
Date: ________________

Landlord’s Consent:
I, [Landlord’s Name], the landlord of the property located at [Property Address], hereby consent to the assignment of tenancy as outlined above.

Signature: ________________________
Name: [Landlord’s Full Name]
Date: ________________