Unless you are buying a freehold property from which to run your nursery business, you will as part of the purchase process also require a deed of assignment from the seller, transferring ownership of the premises lease to you or your company. The assignment will also require the consent of the landlord. Unfortunately, this is another straightforward sounding process which can often prove problematic for buyers.
Firstly, you will need to check the terms of the lease to see whether an assignment is allowed. Assuming it is assignable, the assignment will invariably require the landlord’s consent. Although the lease will usually state that such consent is not to be ‘unreasonably withheld’, in practice, it is rarely a speedy process for the following reasons:
- It is currently very much a landlord’s market; there is little incentive for the landlord to agree a speedy assignment if s/he is perfectly happy with the existing tenant and there is no rent payment default;
- negotiations relating to the assignment of the lease are usually conducted through the landlord’s solicitor, not just the seller’s solicitor – this can significantly lengthen the process if not managed proactively by your adviser. In addition, the costs of the landlord’s solicitor (to be met by the seller or buyer by agreement) are often a surprise not budgeted for.