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Transferring a Lease Vehicle to Another Person

If your personal circumstances have changed during the term of your car leasing contract, you may be wondering what options are available to you. In addition to extending, amending or terminating your lease contract early, some finance providers may also allow you to transfer the leased vehicle to another person. This is known as a Lease Transfer or a Transfer of Contract.

A Transfer of Contract can be a confusing process as they are often dealt with on a case-by-case basis. This makes it difficult to determine how long the process takes and details regarding eligibility. To help make the process easier to understand, Nationwide Vehicle Contracts explain how a Transfer of Contract works, why you would need it, and the criteria, fees and the process involved.

young woman in car holding car keys

Can you transfer a car lease to another person?

Some finance providers will allow you to transfer a car lease to another person, provided you meet specific criteria. This is known as a Lease Transfer or a Transfer of Contract.

Typically, to be eligible for a Lease Transfer, you must:

  • Be a private customer on a regulated finance agreement (such as Personal Contract Hire)
  • Have more than 12 months remaining on the car lease contract
  • Be up-to-date with your vehicle rental payments
  • Have the details of a new lessee who will be taking over the car lease contract

How does a Lease Transfer work?

A Lease Transfer is the formal movement of a personal lease vehicle to another person. A Lease Transfer typically applies when: 

  • A personal customer wants to transfer the leased vehicle to another personal customer 
  • A personal customer wants to transfer the leased vehicle to a Limited Company

With a Lease Transfer, the same parameters of the original agreement still apply (e.g. the monthly payments, term, annual mileage and contract type remain the same), but the new lessee assumes full responsibility for the leased vehicle. 

Why would a Lease Transfer be required?

There are several reasons why a customer may want to request a Lease Transfer, such as:

  • A change to personal circumstances (such as relocation or redundancy)
  • A need to break from your lease contract early (where early termination is not appropriate)
  • Allowing the new lessee to secure a vehicle without paying initial rental costs

What are the advantages of a Lease Transfer?

A Lease Transfer offers many advantages for both the existing contract holder and the new lessee.

Advantages of a Lease Transfer:

  1. graphic of early termination fees

    No early termination fees

    A Lease Transfer allows you to exit the terms of your lease contract early without paying hefty early termination fees.

  2. graphic of car lease

    Known vehicle history

    The new lessee gets to drive an almost new vehicle with a known vehicle history and the balance of the manufacturer's warranty

  3. graphic of initial rental fees

    No initial rental fees

    The new lessee does not need to pay an initial rental as required with a new lease, as all the upfront costs have already been covered.

  4. graphic of car lease finance documents

    Contract parameters stay the same

    The contract term, monthly rental, annual mileage and contract type remain the same, allowing the new lessee to take advantage of the original car lease deal.

What are the disadvantages of a Lease Transfer?

As with every type of contract amendment, a Lease Transfer may not be suitable for everyone, so be sure to consider whether this option is right for you. 

Disadvantages of a Lease Transfer:

  1. graphic of magnifying glass over car finance documents

    Case-by-case consideration

    The option to transfer your lease vehicle is at the discretion of the finance provider and is not available with every finance provider. 

  2. graphic of personal car lease customer considering finance eligibility

    Eligibility restrictions

    You must meet certain criteria to be eligible for a Lease Transfer, including financial eligibility

  3. graphic of clock showing time passing

    Time-consuming

    The Lease Transfer process can be time-consuming, taking up to two months to complete from start to finish. 

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    Admin fees apply

    You will need to pay an administration fee to request a Lease Transfer. These costs vary between finance providers but average at around £480 inc. VAT per transfer. 

  5. graphic of bullet points on finance documentation

    Check responsibilities

    It is essential to check if you still hold any responsibility for the car or payments after the transfer has been agreed upon. If so, early termination may be a better option for you. 

Can anyone apply for a Lease Transfer?

No, because this option is not available with all finance providers. A transfer of contract is at the discretion of the finance provider and does not form any part of the customer terms and conditions or finance agreement.

Typically, a Lease Transfer will not be provided where:

  • The vehicle is being moved from a Limited Company to a personal contract
  • The vehicle has been transferred before
  • The vehicle has less than 12 months to run on the contract
  • The vehicle has outstanding debt
  • The vehicle had a deferred payment added to the end of the contract due to a payment break
  • The customer is in arrears or is subject to Default or Insolvency

Am I eligible for a Lease Transfer?

To be eligible for a Lease Transfer, you must meet several criteria stipulated by the finance provider. This typically includes:

  • The original lease agreement must be a regulated Personal Contract Hire or Contract Hire agreement.
  • You must have at least 12 months remaining on your lease contract.
  • The new lessee must go through various credit checks and be credit approved by the finance provider. 
  • The vehicle must not already have been part of a lease transfer agreement.
  • You will need to pay an administration fee of around £480 inc. VAT per transfer request.
man signing transfer of car lease agreement

How much does it cost to transfer a lease? 

You will need to pay an administration fee to request a Lease Transfer. This fee varies between finance providers, so it is important to check before applying for a Lease Transfer. 

If Nationwide Vehicle Contracts arranged your original lease contract, the fee for Lease Transfer is £480 inc. VAT. This fee represents two costs:

  • £240 (inc. VAT) is paid to the finance provider for the administration of the Transfer agreement.
  • £240 (inc. VAT) represents the costs incurred by Nationwide Vehicle Contracts for processing the Transfer agreement on your behalf.

The Lease Transfer fee is payable by debit or credit card or by BACs payment and will be taken before finance proposal. Please note: This fee is payable even if you do not complete for any reason but does not apply if the new lessee fails to pass eligibility checks. 

I want to transfer a lease agreement, what do I do? 

It goes without saying that only existing Nationwide Vehicle Contracts customers can apply for a Lease Transfer with us. If your lease vehicle is with another provider, you must contact them in the first instance to see if you are eligible.

If you are a customer of Nationwide Vehicle Contracts, please follow the below steps to request a Lease Transfer. 

To request a Lease Transfer quotation:

  1. graphic of personal car lease customer considering finance eligibility

    Check Eligibility

    Before requesting a Lease Transfer, please read through the criteria list above to ensure you meet the requirements before contacting us. Specifically, we ask you to check that you have more than 12 months remaining on your contract and that you are up-to-date with your vehicle payments.

  2. graphic of a laptop computer showing email symbol

    Contact Nationwide Vehicle Contracts

    Contact the Nationwide Vehicle Contracts team on 0345 811 9595 or email our Transfer team to request a Lease Transfer. Please note we will only be able to discuss a Lease Transfer with the person named on the finance documentation, and you must have your registration number to hand. Email requests can take up to three working days to be actioned.

  3. graphic of administration fee for car lease transfer

    Pay Lease Transfer Fee

    At this point, you will need to pay the £480 inc. VAT Lease Transfer fee. This is payable by debit or credit card or by BACs payment direct to Nationwide Vehicle Contracts. NB: This fee is payable even if you do not complete for any reason but does not apply if the new lessee fails to pass eligibility checks.  

  4. graphic of car lease finance documents

    Complete Finance Application

    The new customer (who will be taking on the lease contract) must fill out a Finance Application form as a credit check will be required. You can fill out a Personal Finance Form (for Personal Contract Hire agreements) or Business Finance Form (for Contract Hire agreements) online. 

    Please note that it can take up to five working days to receive a credit decision back from the finance provider. If your finance application is approved, you will need to supply copies of your proof of ID and address, along with the current mileage on the vehicle.

  5. graphic of finance provider building

    Request Transfer with Finance Provider

    Upon finance approval, we will contact the finance provider to complete the mandatory checks. All Lease Transfer requests are subject to normal underwriting criteria, and the finance provider is not obligated to approve any Transfer request.

  6. graphic of car lease documents

    Documentation Sent

    If the vehicle qualifies for a Lease Transfer, we will email you a copy of the Transfer agreement and a Direct Debit mandate (DDM), along with a covering letter explaining the next steps. Please check the documentation carefully to ensure everything is correct.

  7. graphic of signature on car lease documents

    Sign Transfer Agreement

    Print off the agreement on plain paper and ensure all parties (existing and new customer) sign the Transfer agreement. You will then need to return the signed documentation and direct debit mandate (DDM) to us. Please note the signed paperwork must be returned before the expiry date highlighted on the documentation. 

  8. graphic of director's guarantee

    Director's Guarantee

    In some cases, where the leased vehicle is being transferred from a personal customer to a Limited Company, a director's guarantee may be required. This must be signed and countersigned by an independent witness and dated at the top of the document. 

  9. graphic of review of car finance documentation

    Review Documentation

    Once we have received the signed documentation, we will send this to the funder for review. Please allow three to five working days for this to be received and reviewed by the finance provider. 

  10. graphic of car finance documents and calendar

    Date Effective

    Once the finance provider is in receipt of the documents and has been countersigned by their legal department, we will inform you of the Lease Transfer date. You must continue to pay the monthly rentals until the Transfer of Contract is completed and a new start date is given to you.

How long does a Lease Transfer take? 

The process involved in a Lease Transfer varies case-to-case and is often dependent on the finance provider. We advise that the process can take up to two months from beginning to end, so please bear this in mind when contacting us. 

You can help speed up the process by ensuring you have all relevant documentation to hand (such as proof of ID) during the finance application stages and that all parties sign the Lease Transfer documentation promptly. 

When will my monthly rentals stop and be transferred to the new lessee?

When the Lease Transfer documents have been signed by all parties (including the finance provider's provider legal department), you will be given a specific date when the vehicle is transferred. Until then, you must continue to pay the monthly rentals until the Transfer of Contract is completed. 

Please note only full rental invoices will be credited, so if a Transfer date falls during the rental period, the next full rental invoice period will be credited. 

Want to know more about transferring your car lease contract?

If you have a question regarding a Lease Transfer or want to know more about eligibility or the process involved, contact Nationwide Vehicle Contracts on 0345 811 9595 (option 4) or visit our Motoring Guides section to view other options available to you. 

Early Termination: Ending Your Lease Contract Early Amending the Mileage on Your Lease Contract

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