What does it mean when a business has an assumable lease?

It's part of a homework question. I'm writing up a SWOT analysis for a business with an assumable lease and just want to know what it is. All I can find on an assumable lease is that it can be transferred to somebody else. Is there any more to it?

3 years ago - 2 answers

Best Answer

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Means the location of that business is a rental. The lease has not expired and the buyer of the business also agrees to pay rent as per the lease. Means the buyer can't buy just the business and move it to a new location and the rent for the store is already set so they cannot negotiate new terms

3 years ago

Other Answers

Maybe. As a Landlord I have entered an agreement with the tenant. The clause that says it is assumable MAY attache some restrictions, approvals or rent increases. If all that info is not part of the information you are given, then the answer is No - you can continue to conduct business from the current location. A good thing once a business is established.

by justwondering - 3 years ago