If lessor approves assignee how is it reasonable for lessor to not release original lessee?

My client is buying a business opportunity subject to cancellation of seller's existing unfavorable lease with landlord and entering new lease with him. We want to have a paragraph in new lease addendum that once landlord approves assignee/new buyer (if my client decides to sell the business later) based on assignee's credit worthiness and qualifications landlord shall release original lessee/my client. Landlord says no. Is it reasonable?
In Leasing Property - Asked by Nshan R. - Jul 3, 2011
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Answer(s)

Rob M.
Lender/Mortgage Broker
Houston, TX

Yes. If the lease was unfavorable to begin with then why did he sign it? Can he move the business down the street?

Jul 6, 2011
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Chris R.
Broker/Agent
Denton, TX

Generally if the new tenant is as good or better of a credit risk and all other factors - the owner should not have an issue with releasing the original tenant from the lease. Many leases contain language and clauses that might address such scenarios. An attorney may be appropriate to review and provide legal advice relative to contract law.

Jul 6, 2011
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Nancy G.
Broker/Agent
Sandy Springs, GA

Yes. I concur with both answers. The owner may also have financial banking reasons on why thye may a AAA rated tenant vs a A tenant or lower. I was once working on a building where the Red Cross was vacating and the bank of the Landlord may have given the loan based on a certain type of tenant. The next tenant could be different and more of a risk

Jul 13, 2011
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Theodore B.
Broker/Agent
Houston, TX

Good question to ask an attorney but I believe that might you might want to research illegal allienation.

Jul 19, 2011
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