When a business is taken over, it's usual for the new owners to assume responsibilities for leased equipment. The lease is transferred from your original client to the new business.
This is often a term of sale of businesses, and can be quite complex, if the transfer of lease is not accepted by the lessor.
You may wish to consider the ramifications of a lease transfer for your business. If the lease is about to expire, you may prefer to draft a new lease to the new owners to increase the lifespan of the leasing arrangement.
This letter contains references to legal obligations on yourself and the lessee.
The actual transfer of lease is an executable document.
This letter is an agreement in principle. Seek legal advice regarding the requirements of the transfer.
Acceptance of transfer means the lessee assumes responsibility for the terms of the lease.
You, in turn, are obliged to comply with the terms of the lease to the new owners.
The example below is a transfer the lease of several bobcats to a new construction company.
Re: Transfer of lease of equipment
I refer to your letter of (insert date) requesting the transfer of lease of equipment being 5 bobcats formerly leased by (name of prior lessee).
Please be advised that this transfer of lease is acceptable and no amendments to the terms of the lease will be required.
A formal transfer of lease document will be forwarded for your signature within 10 working days. Instructions from our solicitors, Black & White, will follow with the transfer.
If you have any queries regarding execution of the document, please contact Black & White for guidance.
If you have any queries regarding the terms of the lease, please contact me directly on the above phone number or email address.