Business lease

About this lease

This lease should be used to let an industrial unit such as a workshop, factory, depot or warehouse that shares common facilities and services with other units let by the landlord to different tenants. Commonly, this lease would be used for a unit on a small- to medium-sized industrial estate or business park. Paragraphs within this lease provide for recovery of service charges.

The document has been drawn to help protect the landlord's interests as greatly as possible.

Similar industrial lease agreements

This lease comes with a provision for service charge recovery. If you don't need this, Workshop lease agreement may be appropriate.

Key features

Plain English is used throughout except where it is necessary to use legal terms common in this field of law.

The key features of this template can be summarised as:

• term of 5 years or under (often called a short term lease)
• standard guarantor
• service charge provisions - specifically written for a unit that is part of an industrial estate or business park
• options for transfer or assignment to another party
• sub-letting forbidden
• option to include a break clause for premature termination by the tenant
• a choice of options for rent reviews
• a draft agreement for a security deposit has also been included

This document has been drawn so as to make it applicable to the vast majority of leasing scenarios without making it difficult to edit.

The law in this lease

This lease is regulated primarily by:

• the Landlord and Tenant Acts 1860-2005;
• in particular the Landlord and Tenant (Amendment) Act 1980; and
• the Landlord and Tenant (Amendment) Act 1994

In balancing the codes with the law and the interest of the Landlord, we have followed the codes where reasonable, but have preferred the interest of the Landlord where there may be a difference.

Lease contents

This lease agreement is comprehensive, providing alternative choices for important decisions.

The contents include 29 provisions and 3 schedules covering:

• rent: period, amount, other payments, interest on overdue rent, periodic review
• tenant’s warranties for authority
• landlord’s warranties
• condition and repair
• tenant's positive obligations
• restrictions on tenant: prohibited activities on the property
• signs and advertisements
• goods and vehicles
• assignment of the lease
• indemnities by the tenant
• security deposit
• insurance
• access for landlord
• guarantor
• termination: default notice by landlord; provision for premature termination (a break clause)
• forfeiture
• Schedule 1: the service charge
• Schedule 2: rights reserved
• Schedule 3: draft agreement for a security deposit