Almost always, yes. Most commercial leases say you cannot pass the lease to someone else without the landlord’s written consent, and where the lease says consent cannot be unreasonably withheld, as most do, the landlord can only refuse for a good reason.
When you sell a salon as a business, the buyer normally takes over your lease. That is called an assignment, and nearly every commercial lease requires the landlord’s consent first. If your salon is owned through a limited company and you sell the shares instead, the lease stays with the company, though some leases still require consent for a change of control, so check yours.
What the law says
Where a lease says consent is needed but must not be unreasonably withheld, the Landlord and Tenant Act 1988 puts duties on the landlord once you apply in writing. They must reply within a reasonable time, give consent unless it is reasonable to refuse, and if they refuse or attach conditions, set out their reasons in writing. If it is disputed, it is for the landlord to show they acted reasonably.
What landlords usually ask for
- References, accounts or proof of funds from the buyer.
- A rent deposit, often three to six months’ rent.
- An authorised guarantee agreement from you, which can leave you liable if the buyer does not pay.
- Their legal costs, which are normally paid by the seller.
Start early
Consent is often the slowest part of a salon sale. Tell your landlord as soon as you have a buyer, apply in writing with the buyer’s details, and ask your solicitor to chase. Read your lease before you go to market so there are no surprises.
Sources
- Landlord and Tenant Act 1988, section 1 legislation.gov.uk