The New Name on the Rent Demand: A Tenant's Handover Protocol After a Commercial Sale

When a commercial building changes hands, the tenant's lease does not. That is the reassuring legal starting point. The commercial risk sits in the handover: rent paid to the wrong account, a deposit that is not formally acknowledged, service-charge records that disappear, and notices that are served on an address no longer monitored. For a UK SME, the weeks after exchange and completion are an administrative project that deserves a written protocol, not a series of ad hoc emails.

This guide is a practical survival kit for tenants in England and Wales; Scotland and Northern Ireland have different notice regimes, so check local advice. It is not legal advice. It is a checklist for protecting cash, records and lease rights while a new landlord settles in.

Separate Exchange From Completion

A sale board or an email from an agent is not completion. Exchange of contracts creates a binding agreement between seller and buyer, but the tenant's payment and notice obligations should be organised around completion. Ask the seller's solicitor and the buyer's solicitor for a short completion statement: the date, the new landlord's full legal name, company number, registered office, and the address for service of notices.

Once completed, verify the title at HM Land Registry if the property is registered. Check that the entity named in the lease is the entity now entitled to rent. Groups often use special-purpose vehicles, and a trading name on an invoice is not enough. If the lease requires notices to a particular address, update your records only after you have written confirmation.

Do Not Redirect Rent on an Email Alone

Rent redirection is the highest-risk step. Payment fraud is common, and a convincing email with new bank details is not evidence of completion. Before changing a standing order, obtain a written direction from the new landlord or its solicitor, verify it through a known telephone number, and confirm the apportionment for the quarter in which completion falls.

In England and Wales, any demand for rent should carry the landlord's name and address as required by section 47 of the Landlord and Tenant Act 1987, and a notice of address for service under section 48. Check these before paying. If a demand is defective, take advice before withholding rent; the safest course is usually to pay what is undisputed and resolve the defect in writing.

Keep a simple rent ledger: invoice date, period covered, amount, payer, payee, and bank details verified by whom. If the old landlord has received rent for a period after completion, ask for an apportionment credit rather than a refund to avoid a gap in your records.

Secure the Deposit Position

A rent deposit is not just a balance in someone's account. It is held under a deposit deed, often by the landlord as security for the tenant's obligations. On a sale, the deposit should be transferred to the new landlord or held in accordance with the deed, and the tenant should receive an acknowledgment.

Ask for: the deposit deed; the current balance and any accrued interest; confirmation of the account or arrangement; and a deed of assignment, novation or acknowledgment showing the new landlord is bound. If the old landlord retains the deposit, obtain a written undertaking that it will be transferred or returned on completion. Do not assume a line in a completion statement protects you.

Request the Service-Charge Handover File

Service charges are where handovers most often become expensive. Ask for the current year's budget, the latest reconciled service-charge accounts, the reserve or sinking fund balance, insurance details, and a list of contracts the landlord manages. Check the lease for the service-charge year, the tenant's apportionment, and the deadline for balancing charges.

If the sale completes mid-year, confirm how the old and new landlord will split the service charge and any balancing charge. A demand that covers a period before completion should be reconciled, not simply paid twice. Keep copies of everything, including your own service-charge payments and correspondence.

Reset the Lease Diary

A new landlord may inherit a diary it does not understand. That is not a reason for the tenant to relax. Check the lease for rent-review dates, break options, insurance obligations, and any notice periods for alterations, assignment or subletting. If a break option is approaching, confirm the conditions: vacant possession, payment of all sums due, and the exact notice address.

Also check whether any notices were served before completion. Ask for confirmation that no arrears, dilapidations claims or disputes are outstanding. If the new landlord alleges arrears, request a statement and reconcile it to your ledger before paying.

The First Thirty Days: A Handover Checklist

• Obtain written confirmation of completion and the new landlord's legal identity.
• Verify the title and the address for service of notices.
• Check rent demands for section 47 and section 48 information.
• Verify new bank details by telephone through a known contact.
• Agree rent apportionment for the completion quarter.
• Obtain acknowledgment of the rent deposit and its balance.
• Request service-charge budgets, reconciliations and reserve-fund statements.
• Confirm insurance arrangements and any premium apportionment.
• Update the lease diary for rent reviews, break dates and notice deadlines.
• Put all communications in writing and keep a single handover file.

When to Escalate

Instruct a solicitor or surveyor if the deposit is not acknowledged, a demand is inconsistent with the lease, a break date is within six months, the new landlord disputes arrears, or service-charge records are missing. These are not administrative irritations; they can become defaults or lost rights.

A change of landlord should be a change of payee, not a change of lease. Treat the handover as a controlled project, verify before you pay, and keep the paper trail. That is how a tenant protects its cash and its position when the name on the rent demand changes.