Any property experts able to advise on commercial leases.

Currently 2 people named on a commercial lease, 1 person wants to leave and hand over responsibility for the lease to the other including insurance and repair liabilities.

Do you need a commercial sub-lease or can this be done informally with some kind of written agreement and most importantly without using a solicitor?

You need the permission of the landlord and there will almost certainly be some legal expenses involved.

Thanks for the reply.

The lease states that sub-letting is OK if landlord informed which is fine. But can it be done as an informal agreement between the 2 people without involving the landlord?

Also would any agreement be legally binding should there be an issue, i.e. a roof repair or similar, so would it remove the liability for the second person?

The lease states that sub-letting is OK if landlord informed which is fine. But can it be done as an informal agreement between the 2 people without involving the landlord?

In most cases I would say no.

Also would any agreement be legally binding should there be an issue, i.e. a roof repair or similar, so would it remove the liability for the second person?

A scenario, you make an informal agreement. The roof falls in and is going to cost a lot. The other party decides to forget about the handshake and refers to the original legal agreement. You would still be liable.

Also, if you are still on the lease and the guy who agreed to take it over informally went bust, the landlord will be coming to you for the rent.

I would say that for piece of mind, limiting the chance of any surprises in the future, the goodwill of the landlord etc, it is worth the cost of sorting things out legally.

Cheers, that’s kind of what I was thinking.

The 2 people are in a partnership at the moment and 1 wants to leave the business and leave the other in charge taking on the lease and all the liability for rent etc. The lease runs for another 18 months and it would have been nice to think that a cheap (free) option would be a typed agreement saying that the remaining partner assumes all liabilities in the master lease.

The remaining partner does not think there is a need for anything other than a verbal agreement but the other partner (my interest is with this side) is worried they will be open for major issues should there be a problem (roof collapse) or default on rent.

I guess the cost of a formal sub-lease drawn up by a solicitor would be worth it’s weight in gold should there be problem.

Thanks again.

there is nothing to stop the two partners assigning the lease to the one who wants to carry on. much easier and does not involve the need to draw up a sub lease though the outgoing partner may need to gaurantee the performance of the continuing partner (depends on what your lease says – called an authorised gaurantee agreement). you would more than likely need your landlords consent whatever.

Definitely need the landlords agreement. The landlord has the right to refuse to allow the assignment of the lease if they feel that the quality of the lease is worsened.

Landlord’s permission sounds sensible.

It sounds like an AGA would still leave a fallback position of liability on some level so it looks like a Solicitor’s involvement would be wise and a sub-lease/reassignment.

Really want a water tight situation, handing over any liabilities to the other party so there are no surprises right to the end of the lease.

Thanks for all the info and advice. Much appreciated.