About this lease agreement
This business lease has been drawn to let a retail unit in a parade of shops owned by the same landlord. Tenants are likely to share some facilities and services, and this agreement allows for service charge recovery and use of shared facilities between tenants. The shop could be for any purpose, such as retail of goods, restaurant or cafe, or service provision such as PC repair or estate agency.
The shop may or may not have additional space used by the tenant for other business purposes, such as offices or storage. This lease does not cover additional space used for residential use by the tenant, although Net Lawman does provide one that does (see below).
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
If a restaurant, cafe or fast food outlet will be operated from the property, Business lease: restaurant, cafe or fast food may be more appropriate. This lease contains specific clauses for commercial kitchens and food retail.
If you don't require service charge recovery provisions, use Shop lease: single retail unit.
If the tenant will also live at the property, Mixed use lease: shop in parade with residential space may be more appropriate.
If the property will be used as an office (rather than a shop), Office lease may be more 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 lease template can be summarised as:
- term of 7 years or under (often called a short term lease)
- standard guarantor
- 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 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: Commercial property lease: shop or retail unit in parade 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 in this shop 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;
- 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 shop lease is comprehensive, providing alternative choices for important decisions. The contents include 25 provisions and 3 schedules covering:
- rent: period, amount, other payments, interest on overdue rent, periodic review
- condition and repair
- tenant's positive obligations
- 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 document 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 business premises 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. |
