LeasePlan can offer a novation from one limited company to another, which includes LTDs, LLPs and PLCs, provided that both businesses are solvent. If you are a sole trader and the contract is an unregulated one then you can also novate the contract to a limited company.
The contract parameters, including lease length and mileage allowance as well as the contract type will remain the same.
Please note that the company taking over the lease will need to have credit approved with LeasePlan before the novation is requested.
The process can take up to two months to be completed depending on how quickly documents are signed.
LeasePlan can only process a novation if the contract has 12 months or more left on it and usually only once the lease is older than six months. If a novation is needed and less than six months have passed since the start of the contract then extra information will be requested to support the request.
If the contract is in arrears then the novation request will be denied.
In order to process the request LeasePlan ask that you provide us with the below information so that we can make the request for you:
- Registration of the vehicle to be novated
- Current customer company name, address and Companies House number
- New proposed company name, address and Companies House number
- The name and number for a chosen contract at the new company
Please note that the address for both businesses will need to match the one on Companies House, if the registered address is not the trading address please let us know.
Once the novation is approved LeasePlan will issue you with the finance deeds, direct debit mandate and a covering letter which explains what needs to be done for you.
Both companies will need to sign three copies of the deed and the direct debit mandate and in some cases a corporate or director’s guarantee might also be required.
These signed documents will need to be returned before the expiry date and sent via recorded delivery to LeasePlan.
LeasePlan will let us know once the novation is countersigned by them and the date it will take effect from.
Please be aware there is a £200 + VAT admin fee for this process that will be invoice to the new customer.