Draft a professional commercial lease for business premises in England and Wales. Covers rent reviews, service charges, FRI obligations, break clauses, and Landlord and Tenant Act 1954 provisions with our free UK template.
A commercial lease agreement is a legally binding contract between a landlord and a tenant for the occupation of business premises such as offices, retail units, warehouses, or industrial space. Unlike residential tenancies governed by the Housing Act 1988, commercial leases in England and Wales fall under the Landlord and Tenant Act 1954, which provides qualifying business tenants with security of tenure and the right to renew their lease at expiry.
The lease sets out the fundamental terms of the tenancy including the rent payable, lease duration, repairing obligations, permitted use, service charges, insurance responsibilities, and the rights of both parties regarding assignment, subletting, alterations, and termination. Most commercial leases are granted on full repairing and insuring (FRI) terms, meaning the tenant bears all maintenance and insurance costs for the premises.
A well-drafted commercial lease protects both parties by clearly defining obligations and reducing the risk of costly disputes. The RICS Code for Leasing Business Premises recommends that landlords and tenants agree heads of terms before instructing solicitors, and that both sides take independent professional advice before entering into the lease.
Doxuno's commercial lease agreement template covers all essential clauses for letting business premises in England and Wales. Each section can be tailored to suit the property type and commercial terms agreed between the parties.
Creating a thorough commercial lease ensures both landlord and tenant understand their rights and obligations from the outset. Our template guides you through each clause so you can produce a professional lease in minutes.
Commercial property law in England and Wales involves several statutory provisions and market practices that landlords and tenants must understand before entering into a lease. The following considerations are essential for any business premises transaction.
Important: This template is provided for informational purposes and does not constitute legal advice. Both landlord and tenant should instruct a qualified solicitor experienced in commercial property before signing any lease.
Reviewed by legal professionals. The content on this page and the template clauses have been reviewed by licensed solicitors in England and Wales to ensure accuracy and legal soundness for standard commercial lease scenarios.
Part II of the Landlord and Tenant Act 1954 gives business tenants security of tenure, meaning the lease does not simply end at expiry. Instead, the tenant has a statutory right to request a new lease on similar terms. The landlord can only refuse renewal on specific grounds set out in the Act, such as redevelopment, persistent breach of obligations, or the landlord's own intention to occupy.
Many modern commercial leases are granted outside the protection of the 1954 Act (known as "contracting out"). This requires a specific procedure: the landlord serves a warning notice on the tenant at least 14 days before completion, and the tenant provides a statutory declaration confirming they understand they will have no renewal rights. If the notice period is shorter, a simple declaration suffices. Both parties should ensure this procedure is followed correctly, as failure to comply means the lease remains inside the Act.
In England and Northern Ireland, SDLT is payable on commercial leases based on any premium paid and the net present value (NPV) of the total rent over the lease term. The tenant must file an SDLT return and pay any tax due within 14 days of the effective date (usually the lease start date). In Wales, Land Transaction Tax (LTT) applies instead, and in Scotland, Land and Buildings Transaction Tax (LBTT) applies. Tenants should take professional advice on their SDLT liability before completing the lease.
Before instructing solicitors to draft the formal lease, landlords and tenants typically agree heads of terms (also called heads of agreement). This is a summary of the key commercial points: rent, term, rent review mechanism, break clause, repairing obligation, permitted use, and any incentives such as a rent-free period or a capital contribution towards fit-out. Heads of terms are usually expressed to be "subject to contract" and not legally binding, but they establish the framework for the formal lease and help avoid protracted negotiations.
The Royal Institution of Chartered Surveyors (RICS) publishes a professional statement and code of practice for leasing business premises. The code promotes fair and transparent lease terms, recommends that landlords provide occupier guides, and encourages both parties to take independent legal and surveying advice. While not law, the code represents best practice and is widely followed across the UK commercial property market.
Create a professional commercial lease agreement for your business premises in minutes. Our UK template covers rent reviews, FRI terms, break clauses, and all essential provisions for a legally sound letting.
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