Lease agreement: pub or restaurant with flat over

This is a comprehensive lease for letting a pub or licensed restaurant with a flat or maisonette above for the tenant to live. The premises may be detached or connected. Features are: service charge provision; guarantor; break provision; rent review options; option for assignment; sub-letting not allowed; ss 24-28 opt-out; full, draft agreement for security deposit.

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About this lease

This lease is for a pub or restaurant with a flat over. The premises may be in an urban shop frontage, a stand-alone site or away in the country.

The lease is drawn for maximum protection of landlord’s interests. It is very thorough with many simple options where choices are possible.

Where relevant, the lease includes matters relating to licences and the Licensing Act 2003.

The lease has been drawn to prefer the interest of the landlord rather than the tenant.

Provided the term of the lease is seven years or less, it does not need to be registered at the Land Registry.

The law relating to this lease

The lease is 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.

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 2 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: rights reserved
  • Schedule 2: draft agreement for a security deposit

Scottish version of this lease

The law governing commercial leases is substantially different in Scotland as compared with England, Wales and Northern Ireland. In Scotland there is no equivalent to the Landlord and Tenant Acts. There is little legislation or case law relating to leases in Scotland. So the version we have drawn for our Scottish user is common law based.

On registration of leases in Scotland, only commercial leases for longer than 20 years must be registered in the Land Register of Scotland. However, the lease is often registered in the Books of Council and Session in Edinburgh.

For the Scottish version of this lease please select "Scotland" from the list in top box.

Draftsman

This document was written by a solicitor for Net Lawman. It complies with current English law.

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