Updated October 2026 · Fraser Bond
Commercial · Leases
Selling a business with a lease
Assignmentlicence
Consentnot unreasonably withheld
AGAguarantee
Timescaleplan early
In short: If your business occupies leased premises, the buyer usually takes over the lease by assignment, which normally needs the landlord's consent. Where the lease says consent can't be unreasonably withheld, the landlord must respond within a reasonable time, but can set conditions in the lease, such as financial tests or an authorised guarantee agreement (AGA) from you guaranteeing the buyer. Check the lease early: short remaining terms, upcoming rent reviews or dilapidations can affect the price. Fraser Bond advises on commercial leases in London.
Steps
1
Review the leaseAlienation clause, term, rent, breaks.
2
Approach the landlordEarly, with buyer's details.
3
Licence to assignLandlord's formal consent.
4
CompleteLease and business together.
Frequently asked questions
Can my landlord refuse an assignment?
Only reasonably, if the lease says so.
What is an AGA?
A guarantee from the outgoing tenant for the incoming tenant.
Selling a leasehold business?
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