Difference between sub-leasing and assigning
Business equals change.
Commercial leases do not.
When signing a lease, it pays to consider your future and if you are permitted to sublease or assign any surplus space. Determine what will best suit your needs and what the associated conditions are; for example clauses around options, charging, if there is a profit will this be split with the landlord, and how any expenses are shared or funded.
Therefore, under the terms of your lease contract, give thoughtful consideration to and understand the clauses around sub-leasing or assigning of space.
So, what's the difference between a sub-lease and an assignment of space?
With a sub-lease the original tenant continues to be responsible for upholding all aspects of the lease. While the sub-leasee will contribute to the rent, all legal obligations remain with the tenant that signed the original lease agreement.
When there is an assignment, the assignee takes on all the responsibilities and obligations set out in under the lease.
In 2008, the Property Law Act 2007 came into play, replacing many of the outdated provisions set out in the act of 1952 that has previously governed commercial leases. It includes numerous provisions around assignment and sub-leasing.
As always - the best advice when negotiating a lease is to get professional advice. Consult a property lawyer and ensure you have the very best clauses in play to deal with changes to your needs down the track.
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