This commercial property lease is suitable for the occupation of all types of property. It can be used for whole buildings as well as part of buildings and units on an estate. The landlord insures the property and is reimbursed by the tenant and a rent review clause is included.
The commercial lease template (long term) is suitable for use where the tenant is an individual, a partnership or a company. It is not suitable if either the landlord or tenant is a charity.
Leasing Part of a Building
Where the property is part of a building, the landlord undertakes to provide services that include the repair and maintenance of the structure and exterior of the building and its common parts, the tenant contributing to the costs of such maintenance by means of a service charge.
Such a lease is referred to as a full repairing and insuring lease, or FRI. An FRI lease is the shortened term for a lease which imposes full repairing and insuring obligations on the tenant, relieving the landlord from all liability for the cost of insurance and also repairs.
In relation to the insurance for a FRI (part of building) lease, the landlord insures the property and the tenant repays the premium to the landlord. The landlord will usually insist on insuring the property as he or she is then in control and can ensure that the property is properly insured at all times.
Damage or Destruction of the Property
In the case of damage or destruction to the property, the lease provides that the lease will not terminate automatically if the premises are destroyed and the lease continues at least for the time it takes for the premises to be rebuilt - normally for up to three years. The lease provides that in those circumstances payment of the rent is to be reduced rate-ably to match the extent of the damage provided the damage or destruction is as a result of an insured risk.
Declarations and Notices
This commercial property lease package includes the various declarations for communication between the landlord and tenant, to permit (as an option) the lease to opt out of the Landlord and Tenant Act 1954. This gives the tenant and landlord the potential to agree that the tenant cannot apply to the court for an extension to the lease. If you choose not to opt out of the Act, then special notices (included with this package) are required to be used by tenant and landlord when considering a subsequent extension or renewal of the lease. See Section 25 Notice and Section 26 Notice pages.
Long Term Leases
The grant of a lease for longer than 7 years must be registered at HM Land Registry as must an assignment (i.e. the transferring from one tenant to another) of a lease which is not registered and has more than 7 years left to run. Any lease granted for a term of more than 7 years for a property registered with HM Land Registry must commence with a set of prescribed clauses known as clauses LR1 to LR14. The Commercial Lease includes these clauses. This Commercial Lease is also suitable for use when the property is not registered or the term of the lease is 7 years or less.
This commercial lease template package is suitable for use in England and Wales and include the following documents:
- Commercial Lease (long or short as ordered)
- Guidance notes
- Schedule 1 Notice
- Schedule 2 Paragraph 7 Declaration
- Schedule 2 Paragraph 8 Declaration
- Section 25 Notice (not opposing)
- Section 25 Notice (opposing)
- Section 26 Notice
- FR1 form
- AP1 form
- DL form