The assignment of lease is a total right transfer for being a tenant under any lease agreement. The new tenant will be the third-party assignee in this transaction, as per the terms of the lease agreement. He/she will then occupy the leased area, in place of the former tenant.
The assignment of lease is a crucial title deed or agreement, whereby any lessee transfers his/her leasehold/rental rights over any premises/property to a third-party.
Many tenants often wish to end their leases, although they do not wish to account for the lengthy tenures that remain on the same. Hence, they can legally transfer the lease to another party, with the consent of the landlord. This takes place across both the commercial and residential real estate segments. There could be several requirements and obligations to be covered, before the original leaseholder is fully released of all obligations pertaining to the lease. This is not sub-letting, since assignment of lease is a total transfer of all rental/tenancy/leasehold rights. Sub-letting is where the original tenant still holds legal responsibility for the lease and its terms and conditions, even though he/she has got another tenant to pay the rent for a specified duration.
