What is the difference between a lease assignment and a sublease?
When a lease is assigned, a new tenant takes over the original tenant’s obligations under the lease. However, it is important to note that sometimes the original tenant will be obliged, under the terms of lease, to guarantee the performance of the new tenant. This can be subject to negotiation with the landlord, so it is important to seek legal advice.
When a property is sublet, the original tenant is legally bound to the terms of the lease. Properties are usually sublet when a tenant no longer needs the space for their business. When a property is sublet a short sub-lease can be created from the terms of the original lease.