How long does a business lease transfer take?

Finding a business to take the lease on is the variable part. Once you've agreed, the funder's paperwork typically takes a few weeks, and Alphabet, for example, says to allow 8 to 10 weeks from receiving everything it needs.

The honest answer is "it depends", but mostly on two things: how quickly another business agrees to take the lease on, and how long your funder takes to approve them. The car itself has very little to do with it. Here is what to expect at each stage, and what slows it down.

Stage 1: finding a business to take the lease on

This is the part that varies most. A lease with a sensible monthly rental, a popular car and 12 months or more to run can attract interest within days of being listed. A high rental, an unusual car or a lease with only a few months left takes longer, and a contribution towards the new business's costs often speeds things up. Our guide on taking over a business car lease explains what the other side is looking for.

Stage 2: the funder's approval

Once the two businesses have agreed, the funder has to approve the incoming business as it would any new customer. That means a credit check and, usually, a set of accounts and the directors' details. Every funder is different, and not all of them publish a timescale. Alphabet, BMW Group's fleet funder, is one that does: it says a novation takes 8 to 10 weeks on average, counted from the day it receives all the documents it has asked for. Other funders can be quicker, and some won't give a figure until they see the request. Our Funder Fees table shows what we know for the main UK funders.

Stage 3: signing and handover

After approval, both businesses sign the novation agreement, the incoming business sets up a Direct Debit, and the funder moves the vehicle to the new account. This usually takes days rather than weeks. The outgoing business stays responsible for rentals up to the date the transfer completes, so agree the handover date with the funder rather than assuming it.

What slows a transfer down

• Missing paperwork. Funders count their timescale from the day they have everything, so a late set of accounts can add weeks.
• Arrears on the existing agreement. Most funders won't start a novation until the account is up to date.
• Too little time left. Alphabet, for example, needs at least six months remaining on the contract.
• A change of details part-way through, such as a different company name or director.
• The incoming business not qualifying. Many funders only transfer to limited companies, unlimited companies and larger partnerships, not to sole traders or small partnerships. See who funders will transfer a lease to.

How to make it quicker

• Ask your funder in writing whether it will consider a transfer, and what documents it needs, before you list the lease. Then you can send everything on day one.
• Gather the incoming business's latest accounts and director details as soon as you have agreed terms.
• List the lease with a realistic rental and a clear description, so the right business finds it quickly.

A transfer that runs smoothly from listing to completion is often done inside two to three months. That compares well with the factory wait on many new cars, and it is usually a fraction of the cost of an Early Termination Charge. If you're ready to start, list your lease or read our plain-English guide to lease novation.

This article is for general information only and is not financial or legal advice. Information was accurate when published. E&OE. Spotted a mistake? Tell us at hello@swap-a-lease.co.uk. See our corrections policy.