About this agreement
This mixed use lease should be used to let a commercial property that also includes residential space that will be used by the same tenant. The most common example would be a shop with a flat above.
The tenant could use the commercial space for any purpose including:
- conventional retail of goods
- restaurant or cafe
- provision of services such as PC repair or estate agency
The shop may or may not have additional rooms used by the tenant for other business purposes, such as offices or storage.
The mixed use lease provides for the residential space to be part of the business letting, regulated by the Landlord and Tenant Act 1954 and not the Housing Act 1988. The agreement includes an extensive menu of tenants' covenants to protect every aspect of the landlord’s interest.
Paragraphs relating to a full recovery of a service charge allow this lease to be used for a shop that forms part of a parade owned by the same landlord and that shares common services with other units in the parade. However, the document could be amended to remove these clauses if the property is not neighboured by others belonging to the same landlord.
The document has been drawn to help protect the landlord's interests as greatly as possible.
This lease does not need to be registered at the Land Registry as it is for a short term of 7 years or under.
Similar commercial lease agreements
We offer two similar leases for shops where the tenant does not live at the property as well.
Use Shop lease: single retail unit if the shop does not share services or facilities with other neighbouring shops owned by the same landlord
Alternatively, use Business lease: shop in parade if you require a provision for service charge recovery.
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 lease template can be summarised as:
- term of 7 years or under (often called a short term lease)
- standard guarantor
- tenant also lives at the property
- 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
- opt-out of Sections 24-28 of the Landlord and Tenant Act 1954
This document has been drawn so as to make it applicable to the vast majority of leasing scenarios for mixed retail/residential use without making it difficult to edit. We sell another version of this lease, aimed at property developers, solicitors and surveyors, that contains some additional paragraphs covering more technical points. You might be interested in looking at: Mixed use property lease: shop or commercial unit with residential space if you need any of the following:
- provisions for sub-letting
- provisions for an authorised guarantee agreement
- extensive landlord's warranties
- references to land registration for leases with a term greater than 7 years
- prescribed lease clauses
The law relating to this lease
Commercial lease law is regulated primarily by the Landlord and Tenant Act 1954, amended many times. Account has also been taken of:
- the Landlord and Tenant (Covenants) Act 1995;
- Landlord and Tenant Act 1954
- the Regulatory Reform Regulations 2003;
- the Joint Committee's Code for Leasing Business Premises;
- the RICS' Code on Service Charges.
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.
Document contents
This lease agreement is comprehensive, providing alternative choices for important decisions. The contents include 27 provisions and 3 schedules covering:
- rent: period, amount, other payments, interest on overdue rent, periodic review
- condition and repair
- tenant's positive obligations
- tenant's obligations for residential space
- service charge recovery
- restrictions on tenant: prohibited activities on the property
- signs and advertisements
- 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
- security of tenure excluded
- Schedule 1: the service charge
- Schedule 1: rights reserved
- Schedule 2: draft agreement for a security deposit
Reasons to buy from Net Lawman
Full money back guarantee – buy with confidence
This mixed use lease comes with a no questions asked full money back guarantee. You take no risk that it might not be right. Once you buy it, we’ll give you 30 days to evaluate it in any way you want. If for any reason you’re not happy, just e-mail us and we’ll refund your money in full immediately.
Guidance notes included
We have provided over 3,500 words (8 pages) of extensive, pithy guidance notes to help you complete your business property lease. These notes ensure that you don’t need to be a lawyer to understand how to edit the document.
Minimal editing required
This document has been drawn using a technique whereby you can easily remove what you do not need from the template, without affecting the remaining structure.
Plain language minimises future disagreements
Your agreement is real law written in plain language that all parties will understand.
Buy once and use for multiple tenants and multiple properties
You can use the lease contract for multiple tenants and for different properties. Just create a new version from the master version you download.
Delivered straight to your inbox
As soon as you complete the secure checkout process, we will send your commercial property lease straight to your inbox. We will also keep a copy for you for 60 days in our customer area so you can access it even when you are away from your e-mail.
Still unsure whether this is the right document for you?
If you are unsure whether this mixed use lease is suitable for your particular circumstances, then you have two options. The first is to buy now, evaluate the template, and use the 30 day, full money back guarantee to obtain a refund if it isn’t suitable. You take no risk in seeing the agreement. The second option is to contact us and ask. We aim to respond to your question within 24 hours. |
