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Whether you are a landlord granting a new commercial lease or a tenant taking on business premises, the terms you agree to will shape your obligations for years to come.
Our commercial lease solicitors at T G Baynes bring decades of experience advising businesses across Dartford, Bexleyheath, Orpington and the wider Kent area. We combine legal expertise with practical commercial awareness to negotiate lease terms that protect your interests and manage risk effectively.
From reviewing a first draft through to resolving a dispute over dilapidations, our team handles every stage of the commercial leasing process. We act for landlords, tenants, investors and developers — always with a focus on clear advice, transparent fees and timely results.
What is a Commercial Lease?
A commercial lease is a legally binding agreement between a landlord and a tenant that grants the tenant the right to occupy and use a property for business purposes in exchange for rent.
Unlike residential tenancies, commercial leases are largely unregulated. The terms are negotiated between the parties, which makes professional legal advice essential. A poorly drafted or inadequately reviewed commercial lease can leave a landlord exposed to void provisions or a tenant locked into onerous obligations such as full repairing liabilities or restrictive user clauses.
Commercial leases in England and Wales are governed by the Landlord and Tenant Act 1954, which gives qualifying business tenants the right to renew their lease at the end of the term. However, this protection can be excluded by agreement, another reason why specialist legal advice is critical before signing.
Our Commercial Lease Services
Our commercial property team advises on all aspects of commercial leasing, acting for both landlords and tenants. Our services include:
- Drafting and negotiating new commercial leases, including full repairing and insuring (FRI) leases, internal repairing leases and short-term leases
- Reviewing and advising on lease terms before you sign, ensuring you understand your obligations regarding rent, repairs, insurance, alterations and break clauses
- Lease renewals under the Landlord and Tenant Act 1954, including serving and responding to section 25 notices and section 26 requests
- Lease assignments and subletting, advising on landlord consent requirements, authorised guarantee agreements (AGAs) and licence to assign
- Rent reviews, advising on upward-only rent review clauses, open market rent calculations and dispute resolution
- Agreements for lease, preparing the preliminary agreement that commits both parties before the lease is granted
- Licences for alterations and change of use applications
- Lease surrenders and early termination, including negotiating break clause conditions
- Dilapidations advice for landlords and tenants at lease end
- Commercial lease disputes, including forfeiture, service charge disagreements and breach of covenant claims
Types of Commercial Leases Explained
Not all commercial leases are the same. The type of lease you enter into will determine how repair costs, insurance premiums and other expenses are shared between landlord and tenant. Understanding the differences is essential before you commit.
Full Repairing and Insuring (FRI) Lease
The most common type of commercial lease. The tenant takes on responsibility for all repairs (both internal and structural) and buildings insurance. FRI leases are standard for single-occupancy properties such as standalone shops, offices or warehouses.
Internal Repairing Lease (IRI)
The tenant is responsible for internal repairs only, while the landlord maintains the structure and exterior. This arrangement is common in multi-let buildings where tenants share common areas and the landlord recovers structural repair costs through a service charge.
Short-Term or Periodic Lease
A lease granted for a term of less than six years, often used for pop-up retail, temporary office space or start-up businesses. Short-term leases may be excluded from the security of tenure provisions of the 1954 Act by mutual agreement.
Underlease or Sublease
Where a tenant grants a lease of all or part of their premises to a sub-tenant. The original tenant remains liable to the landlord under the head lease, so careful drafting is required to manage risk.
Need advice on a commercial lease? Contact our team in Dartford on 01322 295555, Bexleyheath on 020 8301 7777 or Orpington on 01689 886000 for a prompt initial discussion.
Commercial Lease Advice for Landlords
As a commercial landlord, you need a lease that protects your investment while remaining attractive to tenants. Our solicitors draft leases that clearly allocate responsibilities, minimise void periods and give you robust remedies if things go wrong. We advise on:
- Granting new leases with appropriate repairing obligations, rent review mechanisms and forfeiture provisions
- Tenant referencing and due diligence before granting a lease
- Rent deposit deeds and guarantor requirements
- Managing lease renewals and opposing renewal where grounds exist under the 1954 Act
- Enforcing tenant covenants, including forfeiture proceedings for breach or non-payment of rent
- Dealing with tenant requests for consent to assign, sublet or alter the premises
Commercial Lease Advice for Tenants
Taking on a commercial lease is one of the biggest financial commitments a business will make. Before you sign, you need to understand exactly what you are agreeing to. Our commercial lease solicitors review every clause and negotiate amendments to ensure the terms are fair and workable for your business. We regularly advise tenants on:
- Reviewing a draft lease and identifying onerous terms before you commit
- Negotiating break clauses, rent-free periods and caps on service charges
- Understanding your repairing obligations and the potential cost implications at lease end
- Lease renewals and your rights under the Landlord and Tenant Act 1954
- Assigning your lease if you want to exit early, including the implications of an authorised guarantee agreement (AGA)
- Responding to landlord claims for dilapidations
- Challenging unreasonable refusal of consent to sublet or alter premises
The Commercial Lease Process: What to Expect
Whether you are granting or taking a commercial lease, the process typically follows these steps:
1. Heads of Terms - The landlord and tenant agree the key commercial points; rent, term, break clauses, repairing responsibilities and any rent-free period. These are usually set out in a non-binding heads of terms document.
2. Draft Lease - The landlord’s solicitor prepares the first draft of the lease. Our team reviews this on your behalf, identifies any issues and raises enquiries.
3. Negotiation - We negotiate amendments to the lease terms, aiming for a balanced agreement that protects your position. This may involve several rounds of drafts.
4. Pre-Completion Searches and Due Diligence - We carry out relevant searches and checks, including verifying the landlord’s title and reviewing any existing charges or restrictions on the property.
5. Completion - Both parties sign the lease, and the tenant pays any rent deposit, first quarter’s rent and SDLT (Stamp Duty Land Tax) that may be due. We register the lease at the Land Registry if the term exceeds seven years.
6. Ongoing Management - We remain available to advise on any issues that arise during the lease term, from rent reviews and alterations to assignment and renewal.
Our Commercial Lease Solicitors’ Fees
Given the value of a typical commercial lease, getting the right legal advice is essential. Our solicitors’ costs for commercial lease advice reflect the high-level expertise and first-class service we offer. We provide competitive hourly rates with complete transparency over all billable work.
To discuss our fees or to request a cost estimate, please get in touch using the contact details above.
Key Commercial Lease Terms Explained
Commercial leases contain a number of standard provisions that can have significant financial and operational implications. Here are some of the key terms you should understand:
Break clause: A provision allowing the landlord or tenant (or both) to end the lease early on a specified date, provided certain conditions are met. Break clause conditions must be strictly complied with.
Rent review: Most commercial leases with a term of five years or more include a rent review mechanism, typically on an upward-only basis to open market rent. The review date, method of valuation and dispute resolution process should all be clearly defined.
Repairing covenant: Defines which party is responsible for repairs to the property. A full repairing obligation requires the tenant to keep the entire property in good repair, including the structure, even if it was in disrepair at the start of the lease unless a schedule of condition is agreed.
User clause: Restricts how the tenant may use the property. A narrow user clause can reduce the property’s appeal if you need to assign the lease, while a broad clause gives greater flexibility.
Alienation clause: Controls whether the tenant can assign the lease to a third party or sublet all or part of the premises. Most leases require the landlord’s prior consent, which cannot be unreasonably withheld.
Service charge: In multi-let properties, the landlord typically recovers the cost of maintaining common areas through a service charge. Tenants should check for caps, sinking funds and the landlord’s obligations to consult before incurring major expenditure.
Frequently Asked Questions
Do I need a solicitor for a commercial lease?
Yes, you should always instruct a solicitor before entering into a commercial lease. Unlike residential tenancies, commercial leases have few statutory protections, and the terms are almost entirely negotiable. A solicitor will identify unfavourable clauses, negotiate amendments and ensure you understand your financial and legal obligations before you sign.
How much does a commercial lease cost in the UK?
The cost of a commercial lease will depend on the circumstances. The landlord will normally cover the cost of having the lease agreement drafted while the tenant should ideally have a solicitor review the lease agreement for them before signing. If there is a need to negotiate terms, then both sides would normally need to cover the costs of their own legal advice.
Who pays the legal fees for a commercial lease?
Traditionally, the tenant pays both their own and the landlord’s solicitors’ fees for a new commercial lease. However, this is negotiable and increasingly tenants are only agreeing to pay the landlord’s costs up to a capped amount. On lease renewals and rent reviews, each party typically bears their own legal costs.
How long does a commercial lease take to complete?
A straightforward commercial lease transaction typically takes four to eight weeks from instruction to completion. More complex transactions involving extensive negotiations, planning issues or multiple parties can take three to six months. Starting the process early and instructing solicitors promptly helps avoid unnecessary delays.
What happens when a commercial lease expires?
If the lease has not been excluded from the Landlord and Tenant Act 1954, the tenant has security of tenure and can remain in the property on the existing terms until a new lease is agreed or the court orders otherwise. The landlord must serve a section 25 notice to propose new terms or oppose renewal. If the 1954 Act has been excluded, the tenant must vacate at the end of the term.
How do you negotiate a commercial lease?
Effective lease negotiation starts with understanding the market and your priorities. Key points to negotiate include the rent, lease term, break clauses, rent-free periods, repairing obligations and service charge provisions. A solicitor experienced in commercial leases will know which terms are standard and where there is scope to negotiate better conditions.
What rights do commercial tenants have without a lease?
A commercial tenant occupying premises without a written lease may have an implied periodic tenancy, which provides limited protection. Without a formal lease, the terms of the arrangement will be uncertain and difficult to enforce. Both landlords and tenants should always have a written lease to clearly define their respective rights and obligations.
Can I assign my commercial lease to someone else?
Most commercial leases allow assignment with the landlord’s prior consent, which cannot be unreasonably withheld. However, the landlord may impose conditions, such as requiring the incoming tenant to provide references or the outgoing tenant to enter into an authorised guarantee agreement (AGA). Your solicitor can advise on the process and any restrictions in your lease.
What is a schedule of condition and why does it matter?
A schedule of condition is a detailed photographic and written record of the property’s state at the start of the lease. It limits the tenant’s repairing obligation to keeping the property in no worse condition than recorded. Without one, a tenant with a full repairing lease could be required to return the property in a better state than they found it.
Contact Our Commercial Lease Solicitors in Orpington, Dartford and Bexleyheath
To speak to one of our commercial lease solicitors in Orpington, Dartford and Bexleyheath, please fill in our simple enquiry form or call 020 8301 7777.