Transferring a commercial lease in New Zealand can land you with unexpected bills if you don’t know where the costs are hiding. Landlord consent fees, legal reviews, and make-good obligations can add thousands to what you thought was a straightforward handover. Here’s what you actually need to know.
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This article is general information only and does not constitute professional advice. For your specific situation, consult a qualified professional.
Lease transfers happen when a tenant wants to pass their lease to someone else. It’s common when selling a business or moving premises. But the process involves more than just swapping names on a document. The landlord must consent, and that consent often comes with conditions — and costs. If you’re on either side of a lease transfer, knowing what fees to expect and where the traps are can save you a lot of money. Here’s what you actually need to know.
One term you’ll hear a lot in this process is a Deed of Assignment of Lease. This is the formal legal document that transfers the lease from the outgoing tenant to the incoming one. It’s not optional — it’s the core of the whole transaction.
What I tend to notice is that people focus on the rent and the deposit, but the transfer costs are where the surprises live. A quick legal review of the lease and the proposed transfer documents is money well spent.
What lease transfer fees actually look like in New Zealand
The headline figure for a lease transfer might look simple, but the real cost is made up of several layers. Legal fees for reviewing the transfer documents typically run between $800 and $2,500 for a standard commercial lease, according to Sprintlaw’s guide on lease transfers. If the transaction is complex — multiple titles, leasehold properties, or unusual terms — that range climbs to $1,500 to $2,500, as noted by EasySale’s breakdown of property fees.
But legal fees are just the start. The landlord’s costs are often passed on to you. These can include the landlord’s own legal fees for reviewing the transfer, a valuation of the property to check the new tenant’s suitability, and credit checks on the incoming tenant. These aren’t fixed amounts — they depend on the landlord’s chosen professionals and how complex they make the process.
Then there are disbursements. These are the small costs your lawyer pays on your behalf: LINZ registration fees (between $122 and $243), title and property searches ($50 to $150 total), and document certification costs. They add up quietly.
One scenario that catches people out: you agree to a transfer fee of $2,000 with the incoming tenant, but the landlord’s legal bill comes in at $3,500. Suddenly you’re out of pocket. The lease itself usually says who pays what, but many tenants don’t check this clause until it’s too late. If you’re the outgoing tenant, it’s worth weighing the potential landlord costs against the benefit of getting out of the lease.
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| Cost Type | Typical Range | Who Usually Pays |
|---|---|---|
| Legal review (standard) | $800 – $2,500 | Each party pays their own |
| Legal review (complex) | $1,500 – $2,500 | Each party pays their own |
| Landlord’s legal fees | Varies (often uncapped) | Outgoing or incoming tenant per lease |
| Valuation fee | $500 – $1,500+ | Usually the party seeking consent |
| Credit check | $50 – $200 | Incoming tenant |
| LINZ registration | $122 – $243 | Usually shared or per deed |
| Title searches | $8 per document | Each party’s lawyer |
Common mistakes that cost money in a lease transfer
Assuming you’re released from liability
This is the most expensive mistake I see. Many leases include a clause that keeps the outgoing tenant liable if the new tenant defaults. It’s called a “continuing liability” or “guarantee” clause. You sign the transfer, hand over the keys, and think you’re done. Two years later, the new tenant stops paying rent, and the landlord comes after you. The only way to avoid this is to get a formal release in the Deed of Assignment, and even then, the landlord might insist on a separate Deed of Covenant or Guarantee. If you’re the outgoing tenant, getting specific legal advice on your liability before signing anything is the smart move.
Ignoring make-good obligations until the last minute
Make-good means putting the property back to its original condition. That includes repairing damage, removing any fit-out you installed, and repainting. These obligations don’t disappear when you transfer the lease — they transfer with it, or the landlord can demand you do them before the transfer. If you’ve been in the space for years, the cost can be substantial. A quick walk-through with the landlord and the incoming tenant, with photos, can prevent disputes later. Get the condition agreed in writing before the transfer goes through.
Not checking the landlord’s consent conditions
The landlord’s consent to the transfer isn’t automatic. They can impose conditions: a higher rent review, tighter permitted use restrictions, or extra security. These conditions are often buried in the licence to assign. If you don’t review them carefully, you could end up with a lease that’s worse than the one you started with. A lawyer reviewing the consent documents can flag these changes before you agree to them.
Handing over control too early
Once you give the incoming tenant the keys, you lose leverage. If the transfer isn’t finalised and something goes wrong — the landlord refuses consent, or the new tenant’s credit check fails — you’re stuck. The outgoing tenant should keep control of the premises until the Deed of Assignment is signed and registered. The same goes for the incoming tenant: don’t pay the full transfer fee until the landlord’s consent is confirmed in writing.
How to handle a lease transfer from start to finish
Check the lease for transfer restrictions first
Before you do anything, read the lease. It will tell you whether the landlord’s consent is required (it almost always is), what conditions they can impose, and who pays the costs. Some leases say the outgoing tenant pays all the landlord’s legal fees. Others split them. Knowing this upfront stops you from agreeing to something that costs you more than the transfer is worth. If the lease is unclear, a lawyer can interpret it for you.
Apply for landlord consent early
Once you’ve found an incoming tenant, apply for the landlord’s written consent. This is where the fees start. You’ll need to provide information about the new tenant: their financial position, business history, and sometimes a personal guarantee. The landlord will run credit checks and may ask for a valuation. The sooner you start this process, the sooner you know the true cost. Delays here can hold up the whole transfer, especially if the landlord’s lawyer is slow to respond.
Negotiate the consent conditions
Don’t assume the landlord’s conditions are standard. They can ask for a higher rent, a shorter lease term, or tighter use restrictions. You can negotiate these. The incoming tenant might push back on conditions that make the lease less attractive. The outgoing tenant wants conditions that don’t create ongoing liability. A thorough legal review of the transfer documents helps you spot what’s negotiable and what’s not.
Prepare and sign the Deed of Assignment
This is the formal document that transfers the lease. It names the outgoing tenant, the incoming tenant, and the landlord. It sets out the terms of the transfer, including any conditions from the landlord. Both tenants sign it, and the landlord signs to confirm consent. Once signed, it’s sent to LINZ for registration. The registration fee is typically between $122 and $243. After registration, the transfer is complete — but only if the deed includes a clear release of the outgoing tenant from future liability.
Plan for make-good and handover
Before the transfer date, agree on the condition of the property. Take photos. List any damage. If make-good work is needed, decide who does it and when. The outgoing tenant might prefer to pay the incoming tenant to handle it, rather than doing the work themselves. Put this agreement in writing as part of the transfer documents. Don’t rely on a handshake — it’s not enforceable if a dispute arises later.
Frequently asked questions about lease transfer fees in New Zealand
Can the landlord refuse consent to a lease transfer? ▾
Who pays the landlord’s legal fees for the transfer? ▾
How long does a lease transfer take in New Zealand? ▾
Do I need a lawyer for a lease transfer? ▾
What happens if the incoming tenant defaults after the transfer? ▾
Can I transfer only part of my lease? ▾
Getting the transfer right protects your finances long after you leave
The biggest risk in a lease transfer isn’t the upfront fees — it’s the liability that follows you after you think you’re done. A properly drafted Deed of Assignment with a clear release clause is the only way to walk away clean. The costs of getting it wrong — unpaid rent, legal disputes, make-good bills — can dwarf the transfer fees themselves. If you’re considering a lease transfer, a quick consultation with a property lawyer can clarify what you’re actually signing up for.
Remember: this article is general information only. For advice on your specific situation, speak to a qualified professional.
If this was useful, you might also want to read Decode Your Tenancy Agreement: A NZ Renter’s Survival Guide.
Sources and Further Reading
Essential Tips for Renewing Your Apartment Lease in New Zealand — A practical guide to what happens when your lease term ends and you need to negotiate a renewal.
Sprintlaw (2024). Deed of Assignment of Lease: What You Need to Know. 🔗
Sprintlaw (2024). How to Transfer a Commercial Lease in New Zealand. 🔗
EasySale (2024). Understanding Property Transaction Fees in NZ. 🔗
