When to use:
Like all leases, these lease agreements has been designed primarily to protect the interest of the landlord. It is for a tenant to challenge those paragraphs which may not suit the circumstances. There is much advice for both parties and a list of all our business lease agreements at
http://www.netlawman.co.uk/bizdoclist/land-lease.php
These leases are suitable for:
- a business letting of offices, workshop, factory, shop and others
- premises which are part of a larger set of buildings, e.g.
a shop
a workshop
Which to use?
· Lease PR004 is designed for: any business letting for a short term where the strength of protection required by the landlord is not a prime consideration and a short and simple lease is all that is required. This lease contains no break clause, no guarantor and no rent review. Some other provisions have been reduced in effect. If you are dealing at arms length with an unknown person, we recommend that you use document PR001 rather than this one.
· Lease PR005 is for: premises which include a residential element, designed for the business tenant to occupy as his home. The most common application is “the flat over the shop” but there are many others.
· PR901 - This is the same document as PR001, yet it caters for Prescribed Lease Clauses (PLCs). If your lease is for seven years or more, choose PR901.
· PR904 - This is the same document as PR004, yet it caters for Prescribed Lease Clauses (PLCs). If your lease is for seven years or more, choose PR904.
· PR905 – This is the same document as PR005 yet caters for Prescribed Lease Clauses (PLCs). If your lease is for seven years or more, choose PR905.
None of these documents are suitable for:
- a residential letting alone;
- premises that are part of a large, multi-let building;
Note: neither lease contains provision for service charges. Such a provision cannot be drawn in advance of knowing the details of the proposal. Contact us for a draft to suit your requirements.
Regulatory reform notices
We have included on this page PR201, a pack of forms containing:
the prescribed form of notice to be served as the “14 day health warning” for any new lease;
prescribed form of declaration for new lease;
statutory declaration if less than 14 days notice is given;
This pack contains what you will need in order to set up a lease which excludes security of tenure under the 2004 regulations. This regimen replaces the old system where the parties had to apply to court for an order. You need to buy it now! Here is the form pack.
Lease PR001 and PR005 include the following provisions:
- Guarantor: essential if tenant is a limited company;
- Rent: paid monthly in advance, but can be changed to suit you;
- Payment provisions: all payments the tenant might have to make;
- Use allowed: including list of prohibited activities;
- Break clause: that is, premature termination on tenant’s notice;
- Landlord’s access: to view or show prospective lenders or buyers;
- Rent review: reviewed 3 yearly, upwards only;
- Repairs: tenant must maintain in same condition (not better);
- Decoration: tenant to decorate in third year and at end of lease period;
- Insurance: landlord insures, tenant reimburses premium as insurance rent;
- ]Transfer of lease: tenant can transfer all premises with consent; no transfer of part only;
- Subletting: forbidden;
- Termination: what happens;
- and many other usual provisions to protect your interest.
Land law is a particularly complicated area of law. We will gladly help whether you are a landlord or tenant. Just send us a message. Here are our terms
