Types of Commercial Lease

Commercial leases come in various forms, tailored to fit landlords’ and tenants’ unique relationships. These agreements are often shaped by several factors, including the type of business conducted, the nature of the property involved, and the specific terms agreed upon by both parties. From full-service leases that simplify budgeting for tenants to net leases that […]
Short-Term Commercial Leases (Ultimate Guide!)

A short-term commercial lease in the UK refers to a rental agreement between a landlord and a business tenant for a commercial property, lasting typically from a few months up to three years . These leases offer businesses the flexibility to occupy a commercial space for a shorter period than traditional long-term leases, which can […]
Understanding Commercial Leases (Deep Dive!)

A commercial lease is a formal agreement between a landlord and a business tenant to rent a property used for commercial purposes. This arrangement allows businesses to occupy and use commercial spaces, such as offices, retail units, warehouses, and factories, without owning the property outright. In the UK, commercial leases play a crucial role in […]
Forfeiture of Commercial Lease (A UK Guide!)

Forfeiture of a commercial lease is a legal process in the United Kingdom that allows a landlord to terminate a lease before its agreed expiration date due to a tenant’s breach of lease terms. The most common grounds for forfeiture include the non-payment of rent, violation of lease conditions, or tenant insolvency. Through the forfeiture […]
Commercial Lease Renewal (A Guide!)

At the conclusion of a commercial lease, both parties can enter into informal discussions to renew the lease. The process of renewing a commercial lease in the UK is governed by the Landlord and Tenant Act 1954, which offers protection and clear guidelines for both landlords and tenants. If an agreement on the renewal terms […]
Commercial Lease Surrender

A lease surrender constitutes a consensual agreement between a landlord and a tenant to conclude a commercial lease prematurely, where the landlord consents to reassume possession of the property. Both commercial landlords and tenants face vulnerabilities during periods of economic fluctuation. Tenants may find it challenging to fulfil rent payments and adhere to their lease […]
Introduction to FRI Leases (A Deep Dive!)

A full repairing and insuring lease, known as an FRI lease, is a commercial lease which gives the tenant sole responsibility for the maintenance, repair, and insurance of the property for the duration of their tenancy contract. This means that for the duration of their tenancy, the tenant assumes full responsibility for the upkeep of […]
Licence to Occupy or Lease?

A licence to occupy can provide a property owner with a quick, easy and flexible way of letting out commercial premises, or even a room in their own home, avoiding the formalities and legalities of a commercial lease or residential tenancy. However, it is important to know how licences work, legally speaking, and when these […]
What is a Commercial Lease Break Clause?

A commercial lease break clause enables either the landlord, tenant, or both to end the lease early either on specified dates or at any time during the term. There are many reasons why tenants may be unsure about committing to long term leases, particularly in a challenging economic climate. They could be a new business, […]
Security of Tenure for Business Leases

When securing new premises, the future preservation and success of your business may hinge upon your security of tenure. Legal advice should always be sought prior to entering into a new business lease, as well as in relation to any security of tenure issues that may arise during the course, or upon expiry, of an […]
Taking on a Commercial Lease

If you are a tenant looking to lease new business premises there are numerous issues to consider, not least your legal rights and responsibilities. Some of the most frequently asked questions relating to commercial leases are set out below. What is a commercial lease? A commercial lease is a legally binding document setting […]
Breach of a Commercial Lease (What to Do!)

Both Landlords and tenants can be found in breach of a commercial lease under either the Law of Property Act 1925 or Landlord and Tenant Act 1954 if they fail to meet one of more of the lease covenants. When a tenant has breached the terms of their commercial lease, landlords can respond through serving […]
Commercial Lease Notice to Vacate

When a commercial lease is in place the tenant normally holds the right to remain in occupation until the lease expires. However, as a landlord there are some circumstances where you can take back the premises during the term by issuing a commercial lease notice to vacate. Tenants will often challenge a notice to vacate […]
What is a Commercial Lease Insurance Clause?

It is in the interests of the landlord and the tenant that a commercial lease sets out details of the insurance terms in full. If there is no commercial lease insurance clause there is no obligation to insure the property, resulting in problems for both parties. Who is responsible for insuring a commercial property? […]
Rights Without a Lease (A Guide for Commercial Tenants!)

Ordinarily, commercial property landlords and business tenants should sign a written tenancy agreement setting out the terms of the lease. This provides certainty of both parties’ rights, obligations and clarity of how to resolve any disputes that may arise. It is not generally advisable to lease a commercial property without a written agreement. Issues typically […]
What Happens When a Commercial Lease Expires?

The legal position of a tenant when their commercial lease expires will depend on whether their lease is subject to the Landlord and Tenant Act 1954. Commercial tenants usually remain in a property when a lease has expired because they are still negotiating the terms of a new, renewed lease with the landlord or they […]
Renewing or Ending a Commercial Lease Agreement?

If you are a business tenant and the commercial lease for your business premises is due to expire you will need to consider your next steps. You must determine whether you want to end or renew your lease, and if the latter under what terms, and communicate your intentions to your landlord. To ensure a […]