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Licence to Assign Commercial Lease

A completed fictional landlord consent to assign a commercial lease, with an AGA, pre-completion arrears, permitted use and reasonable-cost terms.

Jurisdiction: England and Wales - completed fictional worked example

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Important: This sample provides general legal information only and is not legal advice. Check the law, prescribed forms and signing requirements that apply to your exact jurisdiction and circumstances before use.

# LICENCE TO ASSIGN COMMERCIAL LEASE

Date: 9 May 2029

Parties: Cedar Quay Properties Ltd, Ashdown Print Ltd and Beacon Studio Ltd

## 1. Maker and subject

Cedar Quay Properties Ltd consents to Ashdown Print Ltd assigning its lease of Unit 7, Riverside Works, Sheffield S3 8AA to Beacon Studio Ltd. The lease began on 1 January 2022, expires on 31 December 2031 and currently reserves £28,000 annual rent, payable quarterly in advance.

## 2. Grant of rights or release

Consent is conditional on Beacon signing the transfer and direct covenants, providing a three-month rent deposit, supplying satisfactory accounts and references, and confirming that its graphic-design studio use is within the lease’s permitted Use Class E use. Beacon must not make a planning or building-regulation assumption from this licence.

## 3. Consideration and confirmations

Ashdown must enter the Schedule 1 Authorised Guarantee Agreement under Landlord and Tenant (Covenants) Act 1995 section 16, guaranteeing Beacon’s immediate assignee covenants only. Ashdown remains responsible for breaches before assignment; the AGA ends on a lawful subsequent assignment or lease expiry as stated.

## 4. Continuing obligations

Before completion Ashdown must pay £2,400 rent arrears, reconcile service charge and settle the agreed £1,150 dilapidations contribution. Beacon takes the lease subject to its terms from completion and must not occupy until Cedar confirms all conditions are satisfied.

## 5. Term, termination and remedies

Beacon pays Cedar’s reasonable legal costs under Landlord and Tenant Act 1927 section 19(1A), estimated at £1,650 plus VAT, whether or not completion occurs because Beacon fails a condition. No consent is implied for subletting, alteration or change of use.

## 6. Law and reservations

The licence is not a transfer of the lease itself and does not release Ashdown from pre-assignment liabilities. Cedar may withdraw consent if material information supplied was false or a condition is not met by 30 June 2029, without waiving accrued rights.

## 7. Execution as a deed

Cedar executes as a deed through two authorised signatories; Ashdown and Beacon execute their covenants with witnesses. The deed is delivered on 9 May 2029, governed by England and Wales law, with the courts of England and Wales having exclusive jurisdiction.

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