Deed of assignment and covenants for title (Procedural steps for the assignment of a lease)- FS

Question 1

What is an assignment of a lease?

Answer 1

is the transfer of the entire remaining interest in a lease from the original tenant (assignor) to a new tenant (assignee). The new tenant takes on all tenant obligations under the existing lease.

Question 2

What form is typically used to effect the assignment of a lease?

Answer 2

The TR1 form, which serves as the Deed of Assignment in lease transfer transactions.

Question 3

Steps in a Lease Assignment Transaction

Answer 3

1. Identify assignor (current tenant) and assignee (new tenant).
2. Draft and execute the Deed of Assignment (TR1 form).
3. Deliver possession to the assignee.
4. Notify the landlord (if required by lease).
5. Update Land Registry (if lease is registrable).

Question 4

What is subletting in leasehold law?

Answer 4

Subletting is when a tenant creates a new leasehold interest out of their own lease, granting part or all of the premises to a third party (the sub-tenant), while retaining a reversion.

Question 5

What is the difference between an assignment and a sublease?

Answer 5

An assignment transfers the entire lease to a new tenant; a sublease creates a new lease under the original lease, and the original tenant becomes the landlord of the sub-tenant.

Question 6

When must a sublease be registered with the Land Registry?

Answer 6

When the sublease exceeds 7 years, it must be registered and will receive a separate title number.

Question 7

What is a covenant for title in lease assignments?

Answer 7

It is an implied contractual assurance that the assignor is not in breach of tenant obligations at the time of assignment.

Question 8

How can an assignor limit liability for breach of lease covenants at the time of assignment?

Answer 8

By including an express clause in the deed stating that the assignee takes the property “as is”, limiting the assignor’s liability for any undisclosed breaches (e.g., poor condition).