A neutral-form commercial lease for the letting of business premises in England & Wales, with the principal commercial terms (rent, repair, alienation, insurance, term and break).
How to use this template, read this first - Replace every
[SQUARE-BRACKET]field before use. - Security of tenure (very important). A tenant has renewal rights under Part II of the Landlord and Tenant Act 1954 only if the arrangement is a qualifying business tenancy and no statutory exclusion or valid contracting-out applies. Where a tenancy qualifies, it gives the tenant the right to renew at the end of the term unless the landlord establishes a statutory ground. The parties can agree to "contract out" of this protection, but only if the strict procedure is followed before the lease is entered into (a landlord's warning notice and a tenant's declaration under the Regulatory Reform (Business Tenancies) (England and Wales) Order 2003). State clearly whether this lease is inside or outside the Act. - Commercial leases are high-value and technical (rent review, service charge, repairing liability), a solicitor must review and adapt this before use.
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THIS LEASE is made as a deed on [DATE]
BETWEEN (1) [LANDLORD NAME] of [ADDRESS] (the "Landlord"); and (2) [TENANT NAME] of [ADDRESS] (the "Tenant").
Agreed terms
1. Definitions. "Premises": [ADDRESS / description, with plan]. "Term": [NUMBER] years from [DATE]. "Rent": £[AMOUNT] per annum [plus VAT], payable [quarterly in advance].
2. Grant. The Landlord lets the Premises to the Tenant for the Term at the Rent, together with [rights of access/use] and subject to [exceptions/reservations].
3. Security of tenure. This lease [is protected by / is excluded from] sections 24–28 of the Landlord and Tenant Act 1954. [If excluded, recite that the contracting-out procedure was completed before the lease was entered into.]
4. Rent and rent review. The Tenant will pay the Rent without deduction. [The Rent is reviewed on [dates] to [open market rent / index], upward only, set out the mechanism.]
5. Outgoings and VAT. The Tenant will pay business rates, utilities and other outgoings, and any VAT properly chargeable.
6. Repair. The Tenant will keep the Premises in [good repair and condition] (a "full repairing" obligation) [subject to a schedule of condition, if agreed]. [For part of a building, repair of the structure is via a service charge.]
7. Alienation (dealings). The Tenant will not assign, underlet, charge or part with possession of the whole or part except [assignment/underletting of the whole with the Landlord's prior written consent, not to be unreasonably withheld].
8. Use. The Tenant will use the Premises only as [PERMITTED USE] and comply with planning and all laws.
9. Insurance. The Landlord will insure the building; the Tenant will reimburse the premium and comply with the insurer's requirements. [Rent suspension applies if the Premises are damaged by an insured risk.]
10. Alterations. The Tenant will make [no structural alterations]; non-structural alterations require the Landlord's prior written consent.
11. Break clause (if any). [Either party / the Tenant] may end this lease on [DATE] by giving [NUMBER] months' written notice, subject to [conditions, e.g. rent paid up to date and vacant possession].
12. Forfeiture. The Landlord may re-enter (forfeit) if rent is unpaid for [NUMBER] days or on other material breach or insolvency, subject to the Tenant's right to apply for relief. For non-rent breaches, forfeiture generally requires prior service of a section 146 notice (Landlord and Property (Miscellaneous Provisions) Act 1994) and an opportunity to remedy where the breach is capable of remedy. Waiver of the breach and restrictions on peaceable re-entry also need careful consideration before any forfeiture is attempted.
13. End of term. The Tenant will yield up the Premises in repair, remove its items and make good. End-of-term dilapidations claims are subject to legal limits, including the statutory cap on damages for breach of repairing covenants (based on diminution in value of the landlord's reversion) and the need to establish the landlord's actual recoverable loss.
14. Governing law and jurisdiction. This lease is governed by the law of England and Wales, whose courts have jurisdiction.
Execution (as a deed)
Executed as a deed by the Landlord and the Tenant [with the appropriate execution and witnessing wording].
--- This template is a starting point and not legal advice. Commercial leases involve significant, technical obligations and the 1954 Act security-of-tenure regime, have a qualified solicitor review and adapt it before use. Governing law: England & Wales.