Create Your Free Commercial Letting/Business Lease

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Free Commercial Letting/Business Lease

Answer a few simple questions
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Just takes 5 minutes

Commercial Letting/Business Lease

QGLeaseType

What kind of commercial property is being leased?

Contract Length

Will this be a standard or comprehensive agreement?Which one is right for me?For most purposes, the standard agreement has all the terms required to create a legally binding agreement.

You may prefer the comprehensive agreement if you would like to customise particular standard clauses pertaining to insurance, inspections and notices, signage, repairs, etc. Most LawDepot customers choose a standard agreement.

Standard

Comprehensive

Property Location

Where is the property located?

Country:

England

Built for England
Different countries have different rules and regulations. Your Commercial Letting/Business Lease will be customised for England.

Address:

e.g. Street, City, England, Postcode

Does this letting comprise only part of a building?

Yes

Frequently Asked Questions

Is this lease suitable for all commercial purposes in England?This commercial lease may not be suitable for charities (as tenant or landlord), agricultural leases or a lease granted under the provisions of the Leasehold Reform, Housing and Urban Development Act 1993. In those cases, you should consult with a local solicitor.

Property Description

Do you want to describe the property in more detail?Why should I provide additional details?Providing additional details can reduce the potential for disputes by further clarifying the boundaries of the property.

Yes

If the lease is for a term of 7 years or more, provide a full description of the property being leased (i.e. as detailed as possible) for Land Registry purposes.

Where mines and minerals, timber and trees, stream beds, roads or other physical features are specifically excluded, you should state this in the legal description.

Your lease may be deemed defective or your application may be rejected without a complete description.

Permitted Use

What is the permitted use of the property?Why should I describe the property's permitted use?Describing the permitted use helps prevent disputes and confusion over what is considered acceptable use of the property. It also allows the landlord to maintain a proper mix of businesses.

e.g. retail shop, office, storage, restaurant, beauty salon, café, etc.

Competitor Leases

Is the landlord prohibited from leasing other units of the property to the tenant's direct competitors? Who is a direct competitor?A direct competitor is a business that offers the same or very similar products or services as the tenant.

Yes

Other Uses

Will the tenant be allowed to use the property for another use in the same class?What is a "use class"?A "use class" is a business category which shares similarities defined by the Town and Country Planning (Use Classes) Order 1987.

Yes

Parking

Will the tenant have access to parking?

Do not include in the lease

Yes

Pets

Will pets be allowed on the property?

Do not include in the lease

Yes

Yes, with landlord’s written consent

Lease Term

What is the type of lease term?What are the types of lease terms? Fixed Term: A fixed term lease ends on a specific date. The conditions of the lease, including rent, cannot be changed unless the lease specifies. The lease will likely become a month-to-month lease after the term expires, depending on the laws of your jurisdiction.

Month-to-Month or Year-to-Year: The lease renews automatically every month or year until the tenant or landlord terminates it. These types of leases offer greater flexibility to both the tenant and the landlord to break the lease, evict the tenant, change the terms, and raise the rent.

Fixed term

Month-to-Month

Year-to-Year

What is the lease term?

Lease start date:

Lease end date:

Frequently Asked Questions

Retail leases in most states/territories of Australia must be at least 5 years long. If you're unsure how long your lease should be, you can check the applicable legislation of your state or territory. or consult local authorities.

Early Possession

Will the tenant be allowed to move in before the lease starts?Why would a tenant move in early?A tenant might be given possession of the property before the lease start date if the tenant needs to perform leasehold improvements.

Yes

Break Clause

Will either party have the right to terminate the lease before its expiration?What is a break clause?A break clause allows either the tenant or the landlord (or both) to end the lease on or after a specified date without waiting for the full term of the lease to expire.

This may be beneficial to the party who wants to end the lease early (e.g. a landlord who wants to redevelop the property or a tenant who wishes to leave without a subtenant or assignee). However, early termination may result in loss to the other party.

Yes

Security of Tenure

Does the tenant have the right to apply for a new tenancy at the end of the current lease?

Yes

Frequently Asked Questions

What is security of tenure?Security of tenure refers to the tenant's right to remain in the property.

The Landlord and Tenant Act 1954 provides that commercial tenants may have security of tenure, or a right to apply for a new tenancy when their lease comes to an end. However, under the same law, parties can also "contract out" of the Act and agree that the tenant will have no security of tenure.

If the parties do not contract out of the Landlord and Tenant Act 1954, special notices (Section 25 Notice or Section 26 Notice) will have to be served by the landlord and/or tenant in order to extend the lease or to oppose the extension.

Assignment

Can the tenant assign or sublease the property?

Only with the landlord's consent

Note: Unless the particular circumstances of the letting justify greater control, the only restriction on assignment of the whole property should be obtaining the landlord's consent which is not to be unreasonably withheld.

Frequently Asked Questions

What does it mean to assign or sublease?If a tenant assigns the lease with the landlord's consent, all of the tenant's rights are transferred to a third party for the remainder of the lease term.

In contrast, the tenant can sublet their right to use all, or part, of the property to a third party, for all or only a portion of the remaining time in the lease. The original tenant would still retain some rights under the lease.

Type of Rent

What type of rent will be charged?

Gross

Net

FRI

The tenant will pay a fixed base rent. Additional costs are paid by the landlord.

Rent Details

How often will the tenant pay rent?

Weekly

Every 2 weeks

Monthly

Yearly

How much is the monthly rent?

Monthly rent:

e.g. 2,000

Rent Payment

What day of the month will rent be paid?

First day

Fifteenth day

Other

Would you like to specify the address where payment must be made?

Yes

Rent Increase

Do you want to include built-in rent increases?

Yes

Late Payments

Do you want to specify late payment charges?

YesNo

Rent Review

Will you conduct a rent review process?What is a rent review?A rent review is a process by which the rent can be reviewed and then changed in order to account for the changes in market or economic conditions over the period of the lease.

YesNo

What type of rent review do you require?

Market rent review

Consumer price index rent review

Fixed percentage rent review

How often will the rent be reviewed?

Every year

Every 3 years

Every 5 years

Other

Frequently Asked Questions

What is a market rent review?A market rent review is where the rent is reviewed in accordance with the current market rates of comparable properties and locations. It is the best rent which might reasonably be expected to be paid by a willing tenant to a willing landlord. What is a Consumer Price Index rent review?A Consumer Price Index rent review is where the rent is adjusted according to the Consumer Price Index (CPI) published by Statistics New Zealand. The CPI is a measure of inflation in New Zealand and provides a level of certainty as to how much rent will increase.

Unlike a market rent review, a Consumer Price Index rent review is not subjective, is less time consuming, and does not raise the risk of potential disputes that a market rent review may entail.What is a fixed percentage rent review?A fixed percentage rent review provides guaranteed certainty that the rent will increase by a specific percentage on the rent review date.

Prepaid Rent

Will the tenant pay any rent in advance?

Yes

Frequently Asked Questions

What is prepaid rent?Prepaid rent is a payment (or payments) made to the landlord at the outset of the lease that the landlord holds as security for the applicable rent payments.

Prepaid rent is different from a security deposit, which is a payment the landlord holds as security for damages other than rent.

In the next step, you can indicate if the tenant is required to pay a security deposit.

Deposit Details

Will a security deposit be required?What is a security deposit?A security deposit is a refundable sum of money the tenant pays to the landlord in order to guarantee their lease obligations will be fulfilled.

The landlord may use the deposit to cover damage caused by the tenant (normal wear and tear excluded) or failure to pay rent.

Yes

Frequently Asked Questions

According to the applicable legislation of your state or territory., the maximum amount allowed for a security deposit in a retail lease in England is information that would should check with a local authority.

Frequently Asked Questions

How should the different costs be listed?Utilities do not refer to taxes, insurance, maintenance, or other service charges.

All service charges are typically covered by the landlord when the rent is a fixed base rent without any additional costs. If you want to specifically name any service charges in your contract, you will need to add them as other expenses on this page.

Utilities, on the other hand, can be assigned to the landlord or the tenant regardless of the type of lease. You can assign the utilities as you see fit on this page.

Insurance will be specified at a later step.What is "Tenant Pays Direct" for utilities?The tenant is billed directly and pays this expense directly to the provider of that utility. This expense would be in addition to any amounts paid to the landlord for rent.What is "Tenant Pays Landlord" for utilities?The tenant pays their share to the landlord who then pays the amount to the supplier of that utility. If the tenant doesn't have a separate meter, they just pay their proportionate share of the total cost. This expense would be in addition to any amounts paid to the landlord for rent.What is "Landlord Pays" for utilities?The landlord pays any utility charges to the supplier of the utility and the tenant is not directly responsible for this expense.

Frequently Asked Questions

What is "Tenant Pays Direct"?The tenant is billed directly and pays theservice charges directly to the provider of that service. This expense would be in addition to any amounts paid to the landlord for rent.What is "Tenant Pays Landlord"?The tenant pays their proportionate share to the landlord who then provides that service or pays the amount to the supplier of that service. This cost would be in addition to any amounts paid to the landlord for rent.What is "Landlord Pays"?The landlord provides this service or pays any costs to the supplier of this service and the tenant is not directly responsible for this expense.

Frequently Asked Questions

If the landlord's title is registered, you should provide title number(s). If the property is not registered, then you should leave this section blank.

If the prescribed clauses lease is granted between a trigger to first registration of the reversion and its lodgement, no title number(s) is required. The same applies to a lease using the prescribed clauses lodged as part of an application for first registration.

Otherwise, if you do not complete this section with the relevant title number(s), the Land Registry will be unable to accept your application where use of the prescribed clauses is compulsory.You must provide other title number(s) when there are any title(s) (other than the landlord's) against which you are applying to make entries on matters relating to:
- rights of acquisition;
- restrictive covenants given in this lease by the landlord in respect of land other than the property;
- easements; or
- an application for a standard form of restriction.

If you do not complete this section with the relevant title number(s), the Land Registry may be unable to accept your application where use of the prescribed clauses is compulsory and may not be obliged to make an entry for these title numbers.A premium is the price a tenant pays to a landlord to purchase a lease. A premium is most often taken in return for the rent being reduced to what would otherwise be payable.

For new commercial leases not exceeding 25 years, it is rare to take a premium. Premiums are most commonly used for long leases of residential property.Reversion refers to any interest left over after the lease has come to an end (i.e. the freehold or a superior lease).A restrictive covenant is a legal obligation which limits/restricts the use of land. The party that is burdened by the covenant is sometimes referred to as a "covenantor" and the party that benefits from the covenant is sometimes referred to as a "covenantee." Often, restrictive covenants are used to preserve and protect the physical, social, and economic integrity of the neighboring property in a subdivision. They may be used to control plot size, control architectural design, or regulate activities.An easement is a right to use the land of another. A common example of an easement is a right of way (e.g. the right to pass over your neighbour's land to empty your bins).The term 'estate rentcharge' refers to how rentcharge is defined in s.1(2)(b) of the Law of Property Act 1925. In short, a rentcharge works like a ground rent as a (usually small) annual payment. Rent charges apply only in certain areas of England. If you are not aware of any rentcharges, select "No" to the question "Are there any estate rentcharges burdening the property?"A restriction is an entry on the register which regulates how an estate or charge may be entered in the register. In effect, a restriction allows the estate or charge entry on the register only to the extent that the entry meets the terms of the restriction. Applicants may place restrictions for many different reasons.

For example, an applicant who has a beneficial interest in a property may want a restriction that no disposition in that property can take place without the applicant's consent. Standard forms of restriction are those restrictions prescribed by the rules. Applicants who fall within one of the standard forms of restriction do not have to satisfy the registrar that they have sufficient interest in the making of the entry. Standard forms of restriction are set out in the Schedule 4 of the Land Registration Rules 2003

Note: If the restriction affects only part of a title, you must incorporate a description of the affected part within the wording of the restriction along the lines set out below. As long as the wording is sufficient to identify the part of the title intended to be affected by the restriction, Land Registry will accept it. The description may take the form of either:

- a verbal description (for example, "No disposition of [the part of] the registered estate [known as 22 Smith Street] by the proprietor of the registered estate is to be registered …"), or

- a reference to the plan attached to the lease (for example, "No disposition of [the part of] the registered estate [shown edged blue on the plan to the lease] by the proprietor of the registered estate is to be registered …").

Land Registry will only accept a verbal description of the property (eg 22 Smith Street) where the precise extent of that property can be clearly identified on the Ordnance Survey map.

Landlord Details

Who is the landlord?

Landlord

Type:

Individual

Company/Organisation

Name:

e.g. ABC Corporation

Full Registered Address:

e.g. Street, City, Country, Postcode

Phone:

Add another landlord

Frequently Asked Questions

How should I write the company number?For Scottish companies, use a SC prefix, and for limited liability partnerships, use an OC prefix. For foreign companies, give the territory in which incorporated.

Tenant Details

Who is the tenant?

Tenant

Type:

Individual

Company/Organisation

Name:

e.g. ABC Corporation

Trading Name (optional):

e.g. ABC Business Advisors

Full Registered Address:

e.g. Street, City, Country, Postcode

Phone:

Add another tenant

Frequently Asked Questions

What is a trading name?The trading name is the name the tenant’s business uses in its advertising. The tenant will not be allowed to carry on business under any other name.How should I write the company number?For Scottish companies, use a SC prefix, and for limited liability partnerships, use an OC prefix. For foreign companies, give the territory in which incorporated.

Guarantor

Will anyone else sign the lease and be responsible for rent if the tenant does not pay?

Yes

Frequently Asked Questions

Who is a guarantor?A guarantor is a person who agrees to pay the landlord directly for any losses should the tenant fail to pay rent or otherwise breach the lease agreement.

A guarantor cannot be one of the tenants.

Landlord Improvements

Will the landlord be required to make any improvements to the property?What are landlord improvements?Landlord improvements are upgrades to the leased property completed by the landlord, e.g. installation of new HVAC units or replacement of existing carpets.

Yes, specify now

Yes, specify in an attached list

Tenant Improvements

Will the tenant be allowed to make improvements to the property?What are tenant improvements?Tenant improvements are upgrades to the leased property completed by the tenant, e.g. a fresh coat of paint or complex renovations of the property.

Do not include in the lease

Only with the landlord's consent

Yes, specify permitted improvements

Landlord's Movable Property

Will the landlord provide any movable property or chattel?What is chattel?Any personal property that is not significantly attached to the property and can be moved without causing damage is considered to be chattel (movable property).

For example: lamps, curtains, microwaves, desks, personal computers, etc.

Do not include in the lease

Yes

Signing Concessions

Will the tenant receive a signing concession?What is a signing concession?A signing concession is any incentive given to the tenant in exchange for entering the lease agreement. A common example is a period of free rent.

YesNo

Frequently Asked Questions

Is an inspection report necessary?A Rental Inspection Report is highly recommended in order to protect yourself and your property. Without one, it is difficult to prove damages were done by a tenant.

LawDepot offers a Rental Inspection Report that can be completed after you finish your lease agreement.

Required Notice Before Eviction

How many days' written notice is the landlord required to give before evicting the tenant?How many days' notice are required?While parties of commercial leases are generally allowed to negotiate most of the terms of the contract, including notice periods, it is advisable to consult your local laws to ensure that any minimum notice requirements are met.

For failure to pay rent when due:

days' written notice

For any other lease violations:

days' written notice

Frequently Asked Questions

When should I edit a standard clause?Revising a standard clause is completely optional and should only be done if you have a specific need or requirement that is not addressed by the standard clause.

Additional Clauses

Do you want to include any additional terms or information?
Most people do not need to create additional clauses.

YesNo

Frequently Asked Questions

When should I include an additional clause?You should include an additional clause if there are any terms or issues unique to your situation that have not been addressed in the questionnaire.In order to reduce confusion, write your clauses with plain language and limit them to one paragraph in length.

Also, use any predefined terms such as Tenant, Premises, Landlord, etc. in your clauses.

Signing Details

When will the Lease be signed?

Unsure

Specify date

Who is signing for the landlord?

Representative's Name:

e.g. John Walter Adams

Who is signing for the tenant?

Representative's Name:

e.g. Rebecca Andersen

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BUSINESS LEASE

THIS LEASE (this "Lease") dated this ________ day of ________________, ________

BETWEEN:

______________________ of _________________________________
Telephone: ______________________
(the "Landlord")

OF THE FIRST PART

- AND -

______________________ of _________________________________
Telephone: ______________________
(the "Tenant")

OF THE SECOND PART

IN CONSIDERATION OF the Landlord leasing certain premises to the Tenant, the Tenant leasing those premises from the Landlord and the mutual benefits and obligations set forth in this Lease, the receipt and sufficiency of which consideration is hereby acknowledged, the Parties to this Lease (the "Parties") agree as follows:

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	Tenant Pays Direct	Tenant Pays Landlord	Landlord Pays	Do Not Specify
Electricity
Gas
Water
Sewer
Telephone
Internet
Cable TV
Other Expenses

	Tenant Pays Direct	Tenant Pays Landlord	Landlord Pays	Do Not Specify
Property or Use/VAT Taxes
Cleaning and Janitorial Services
Operating and Servicing Lifts
Common Area Utilities
Security
Window Cleaning
General Repairs to the Building
Accounting and Auditing
Management Fees and Cost of Building Employees
Supplies
Building Superintendent and Associated Personnel
HVAC Equipment
Preventive Maintenance and Inspection
Outdoor Maintenance
Operation and Maintenance of Parking Areas
Maintenance of Fixtures and Heating

	Tenant Pays	Landlord Pays	Both
Landlord's Contents
Leased Property
Occupiers' Liability

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Create Your Free Commercial Letting/Business Lease

Free Commercial Letting/Business Lease

Commercial Letting/Business Lease

QGLeaseType

Contract Length

Property Location

Property Description

Permitted Use

Competitor Leases

Other Uses

Parking

Pets

Lease Term

Early Possession

Break Clause

Security of Tenure

Option Period

Lease Renewal

Assignment

Type of Rent

Rent Condition

Service Charges

Rent Details

Rent Payment

Rent Increase

Late Payments

Rent Review

Prepaid Rent

Deposit Details

Utilities and Other Expenses

Service Charges

Taxes Payable to Landlord

Taxes Payable to Local Tax Authority

Insurance

Land Registry Information for Prescribed Clauses Leases

Restriction

Landlord Details

Landlord

Tenant Details

Tenant

Guarantor

Guarantor Details

Landlord Improvements

Landlord Improvement

Tenant Improvements

Tenant Improvement

Landlord's Movable Property

Chattel Details

Signing Concessions

Miscellaneous

Required Notice Before Eviction

Edit Standard Clauses

Additional Clauses

Additional Clause

Signing Details

Your Commercial Letting/Business Lease

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