Clauses for insertion into a licence to assign a lease of commercial property (which is a "new" lease for the purpose of the Landlord and Tenant (Covenants) Act 1995) where the lease which is being assigned was granted for a term of more than seven years and one or more of the following apply: (a) the lease is registered (and the overseas entity tenant was registered as proprietor on or after 1 January 1999); (b) the lease is registered and there is an overseas entity assignee; or (c) the lease is unregistered and the assignment will trigger first registration (first registration will be triggered if, at the time of the assignment, the lease has more than seven years to run) and there is an overseas entity assignee. In these circumstances, registration of the assignment will be caught by the Economic Crime (Transparency and Enforcement) Act 2022 (ECTEA 2022) regime.

This standard clause has been drafted as a set of "plug-in" clauses to fit into Standard document, Licence to assign: new lease with AGA and guarantee, but can also be adapted for use in other licences to assign.

This standard clause contains guidance notes within the text (integrated drafting notes), drawing attention to specific issues.

For more information on the ECTEA 2022, see Practice note, Economic Crime (Transparency and Enforcement) Act 2022: property implications.