When a Notice of Assignment Is Required
A notice of assignment is required by: (i) the lease covenant — most residential and commercial leases require written notice to the landlord within 21-28 days of completion of the assignment; a registration fee (typically £25-150) is payable; (ii) LPA 1925 s.136 — for a legal assignment to be fully effective against the landlord, written notice must be given; (iii) notice of charge — a separate notice is required when the leasehold is mortgaged, enabling the mortgagee to receive breach notices and step in on default. Where a management company exists, notice must be served on both the freeholder and the management company — two notices and two registration fees. Failure to serve means the new owner is not recognised: service charge demands and ground rent demands continue to go to the previous owner; the new owner may not be bound by notices or be able to enforce the lease. In pre-1996 leases (privity of contract rule), the outgoing tenant remains permanently liable on all covenants until properly released. In post-LT(C)A 1995 leases, liability ends on assignment but the landlord may require an AGA (authorised guarantee agreement).
Licence to Assign vs Notice of Assignment
Do not confuse two distinct obligations: (i) licence to assign (pre-completion consent) — required where the lease contains an absolute or qualified covenant against assignment; the tenant must apply for the landlord's consent before exchange of contracts; under LTA 1927 s.19 and LT(C)A 1988, the landlord cannot unreasonably withhold or delay consent; the landlord may impose reasonable conditions including an AGA requirement; (ii) notice of assignment (post-completion obligation) — required after completion to register the new owner in the landlord's records. Most modern residential long leases (over 21 years) do not require consent to assign — only the post-completion notice and registration fee. Buyer's solicitor responsibility: notice service is a standard post-completion step; request confirmation and a copy of the landlord's acknowledgement. Serve notices promptly after completion — within the lease's specified period — and retain the landlord's acknowledgement as evidence.