How to Use This Checklist
Click each checkbox to mark items as complete. Your progress is automatically saved to your browser. Use this checklist to:
✅ Three Ways to Use This Tool
1. Draft new commercial office leases: Ensure you don't miss any essential UK commercial property law or UK employment law requirements
2. Review existing procedures: Audit your current disciplinary policy against all 54 compliance points
3. Prepare for disciplinary action: Verify your procedure is legally compliant before taking any disciplinary steps
⚠️ Why Commercial Lease Compliance Matters
📋 Legal Framework: Commercial leases are governed by Landlord and Tenant Act 1954, Law of Property Act 1925, and common law principles. Unlike residential tenancies, there's no prescribed form - parties have freedom to negotiate terms within legal limits.
⚖️ Security of Tenure: Most commercial leases are protected by Part II of the Landlord and Tenant Act 1954, giving tenants automatic right to renew unless properly contracted out. Failing to serve correct notices can result in unintended lease extensions.
🎯 Key Risk Areas: Rent review mechanisms, repair obligations, service charge disputes, dilapidations liability, break clause conditions, assignment/subletting restrictions, and forfeiture rights. Poor drafting can cost tens of thousands in disputes.
💼 Common Pitfalls: Vague repair obligations, unclear service charge definitions, improperly drafted break clauses, failure to contract out of 1954 Act, inadequate alterations provisions, missing insurance requirements
⚠️ Understanding Importance Levels
🔴 Critical: Must have - fundamental lease requirement or creates serious legal/financial risk if omitted
🟡 Important: Should have - recommended for proper commercial lease compliance and reducing dispute risk
🔵 Recommended: Best practice - enhances clarity and demonstrates professional landlord/tenant conduct
1. Parties Identification (4 items)
Landlord Details
Full legal name of landlord (individual or company), registered office address if company, company number from Companies House. If multiple landlords, identify each with their respective ownership shares. Essential for establishing legal relationship and service of notices.
🔴 Critical
Tenant Details
Full legal name of tenant (individual or company), registered office address if company, company number from Companies House. If multiple tenants, identify each. Correct identification crucial for enforcement and notices. Verify tenant entity matches covenant strength assessment.
🔴 Critical
Guarantor Details (if applicable)
If guarantor required due to tenant covenant weakness, include full guarantor details: name, address, company number. Guarantor provides security for landlord if tenant defaults. Must be separate deed of guarantee. Common for new companies, overseas entities, or startups with limited trading history.
🟡 Important
Date of Lease
Date when lease executed. Can differ from commencement date. Important for calculating time limits, rent review dates, lease expiry. All dates throughout lease should reference this date for consistency.
🔴 Critical
2. Premises Details (6 items)
Premises Address
Full address of premises being let: unit number, floor, building name, street, city, postcode. Must be precise and unambiguous. If part of larger building, clearly define which areas are demised (let) and which are common parts.
🔴 Critical
Floor Area & Description
State total floor area in square feet or square metres (specify which). Include whether measured as Net Internal Area (NIA) or Gross Internal Area (GIA) - different measurement standards affect rent calculations. Description helps avoid disputes over exact space demised.
🔴 Critical
Permitted Use
Define what tenant can use premises for: e.g., "general office use (Use Class E)" under Town and Country Planning (Use Classes) Order 1987 (as amended 2020). Use Class E covers most commercial, business, service uses since September 2020 planning reform. Restricts tenant changing use without consent, protects landlord's reversion value, prevents problematic uses.
🔴 Critical
Plan/Description Attached
Best practice: attach scaled plan showing premises outlined in red, common areas cross-hatched. Plan provides visual certainty of demised premises. For complex multi-let buildings, essential for defining boundaries, rights of way, service media routes. Plan should be professionally drawn, signed by both parties.
🔵 Recommended
Included Facilities/Rights
List what's included with premises: car parking spaces (number and location), storage areas, use of loading bays, meeting rooms, kitchen facilities, toilets (if shared or exclusive). Clear on what tenant gets beyond four walls. Rights granted e.g., right of way over car park, use of lifts, access to plant rooms.
🟡 Important
Exclusions & Reservations
Define what landlord retains: structure (external and load-bearing walls, foundations, roof), service media in walls/floors/ceilings, rights to install/maintain services for other tenants, development rights over premises. Prevents disputes about repair/access obligations. Landlord typically reserves right to enter for inspections, repairs, showing to prospective tenants near end of term.
🟡 Important
3. Lease Term (5 items)
Commencement Date
Date when lease term begins and tenant's obligations commence. Can be same as execution date or future date. All time-based calculations (rent reviews, break dates, expiry) run from this date. If rent-free period granted, rent commencement may differ from lease commencement.
🔴 Critical
Lease Term Duration
Length of lease: typically 3-10 years for commercial offices. State in years: e.g., "five (5) years". Shorter terms (1-3 years) common for serviced offices, startups. Longer terms (10+ years) for substantial fit-outs, stable corporates. Terms over 7 years registrable at Land Registry but recommended regardless. Expiry date should be clearly calculated.
🔴 Critical
Security of Tenure Position
State whether lease is inside or outside Landlord and Tenant Act 1954 Part II. Most business leases ARE protected (tenant automatic renewal right at end). To contract out (exclude 1954 Act protection), landlord must serve Section 38(4) notice on tenant, tenant must sign declaration BEFORE lease completion. If contracted out, state "This lease is excluded from Sections 24-28 of the Landlord and Tenant Act 1954." Critical for landlord's ability to recover possession.
🔴 Critical
Break Clause (if applicable)
Option for tenant (or both parties) to end lease early at specified date(s). Common in leases over 3 years. Usually exercisable at year 3 of 5-year lease, or year 5 of 10-year lease. Must specify: when break right exercisable, notice period required (typically 6 months), conditions precedent (e.g., all rent paid, no breaches, premises vacated). Conditions strictly construed - tenant must comply exactly or break clause fails. Landlord-only breaks are rare.
🟡 Important
Rent-Free Period (if applicable)
Initial period where tenant occupies but pays no rent - incentive to attract tenant, compensate for fit-out time. Typically 1-6 months depending on market, lease length, fit-out requirements. State clearly: duration of rent-free period, whether service charge and insurance payable during this time, whether break clause can be exercised during rent-free period.
🔵 Recommended
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4. Rent Provisions (7 items)
⚠️ Rent Review is Critical Commercial Lease Provision
Most commercial leases over 5 years include rent review mechanism to protect landlord against inflation and market changes. Most common is upward-only open market rent review at fixed intervals (typically every 3-5 years). Rent review can't reduce rent below initial figure (unless explicitly agreed). Failing to trigger rent review on time can result in missed increase - strict time limits apply. Always use professional surveyor for valuations.
Initial Annual Rent
Starting rent (often called "principal rent" or "initial rent"): state in pounds sterling per annum, e.g., "£50,000 per annum". Typically calculated as £ per square foot: £20-100/sq ft depending on location, quality, market. London West End highest, regional cities lower. Exclusive of VAT (which may be chargeable if landlord opted to tax). Rent is reserved (legal term meaning rent created by lease).
🔴 Critical
Rent Payment Terms
When rent payable: quarterly in advance is standard (on "usual quarter days": 25 March, 24 June, 29 September, 25 December). Some leases specify monthly. Must state: payment frequency, payment dates, payment method, account details for payment, whether by standing order or on demand. Rent payable whether formally demanded or not.
🔴 Critical
Rent Review Mechanism
For leases over 5 years, include rent review clause. Standard UK review: upward-only to open market rent at specified intervals (typically every 5 years). Must specify: review dates, assumptions (vacant possession, willing tenant, premises fit-out complete), disregards (tenant's occupation, improvements, tenant's goodwill), procedure if parties can't agree (independent expert or arbitration), timetable for serving notices. Rent review is complex - professional drafting essential.
🔴 Critical
Interest on Late Payment
Landlord's right to charge interest if rent paid late. Typically: "4% above Bank of England base rate calculated daily from due date until payment." Provides incentive for prompt payment and compensates landlord for loss. Late Payment of Commercial Debts (Interest) Act 1998 provides statutory right but express provision clearer. Interest accrues from day after rent due.
🟡 Important
VAT Position
State whether rent subject to VAT. Commercial property rent usually exempt from VAT UNLESS landlord has "opted to tax" the building (made election under VAT Act 1994 Schedule 10). If opted to tax, tenant must pay VAT on top of rent (currently 20%). Crucial for tenant's cash flow and recoverability - only VAT-registered tenants making taxable supplies can reclaim VAT. State: "All sums payable under this lease are exclusive of VAT which shall be paid in addition" if applicable.
🔴 Critical
Rent Deposit (if applicable)
If tenant covenant weak, landlord may require rent deposit (typically 3-6 months' rent) held as security. Separate deed of deposit sets terms: amount held, interest payable, circumstances when landlord can draw down (rent arrears, dilapidations), top-up obligations if drawn, return at lease end. Deposit held in designated account, not landlord's general funds. Tenant retains interest. Provides security without need for bank guarantee.
🟡 Important
Rent Suspension Provision
Clause suspending rent if premises unusable due to insured risk (fire, flood, etc.). Typically: "If premises damaged by insured risk and tenant cannot occupy, rent suspended from date of damage until earlier of: premises reinstated, 3 years from damage, insurer refuses payment." Protects tenant from paying rent for uninhabitable premises. Period often capped at 2-3 years, after which either party can terminate. Essential fairness provision.
🟡 Important
5. Service Charge (5 items)
⚠️ Service Charge Disputes Are Common
Service charge allows landlord to recover costs of maintaining building common parts and providing services. Major source of landlord-tenant disputes. Clear definition of recoverable costs essential. Typically covers: cleaning, lighting, heating common areas, lift maintenance, building insurance, security, management fees, repairs to structure/common parts. Tenant pays percentage based on floor area proportion. Must include provision for accounting, tenant's right to inspect accounts, dispute resolution mechanism.
Service Charge Definition
Comprehensive list of services and costs landlord will provide and recover: common area cleaning, repairs to structure/common parts, insurance, utilities for common parts, security, lift maintenance, plant/equipment servicing, management fees (typically 10-15% of other costs), health & safety compliance, landscaping, professional fees. Must be clearly defined to avoid disputes. "Sweeper-up clause" often added: "all other costs reasonably incurred in managing/maintaining building."
🔴 Critical
Service Charge Percentage
Tenant's proportionate share of total service charge, usually based on floor area as percentage of total lettable area. E.g., if tenant occupies 2,000 sq ft of 20,000 sq ft building = 10%. Must be fair and reasonable proportion. For multi-let buildings, all percentages should total 100% (or slightly more to cover voids). State: "The Service Charge Percentage is X% being the proportion the Premises floor area bears to total lettable floor area of the Building."
🔴 Critical
Service Charge Payment Terms
How service charge paid: typically quarterly in advance (on rent quarter days), based on landlord's estimate of annual costs. Within [3-6] months of year-end, landlord provides statement of actual costs. If actual exceeds estimate, tenant pays balancing charge. If estimate exceeds actual, landlord credits/refunds excess (though refund provisions often excluded). Estimates must be reasonable and made in good faith.
🟡 Important
Service Charge Accounts & Inspection
Landlord must provide annual service charge accounts certified by accountant within specified time (3-6 months of year-end). Tenant has right to inspect supporting invoices and receipts during business hours on reasonable notice. This transparency provision helps prevent disputes. Accounts should show: budgeted costs, actual expenditure, tenant's share, amounts paid, balance due. Professional certification adds credibility.
🟡 Important
Service Charge Exclusions
List costs NOT recoverable through service charge: capital improvements (as opposed to repairs/replacements), costs of letting/rent reviews for other units, landlord's own occupation costs, defects due to poor original construction/design, costs recoverable from third parties (e.g., insurance claims, contractors under warranty). Without clear exclusions, landlord might claim excessive items. Protects tenant from unreasonable charges.
🔵 Recommended
6. Repairs & Maintenance (6 items)
⚠️ Dilapidations Liability Can Be Enormous
Tenant's repair obligations determine liability at lease end for "dilapidations" (breaches of repair covenant). Landlord can claim cost of remedying disrepair. Claims often run to tens/hundreds of thousands for substantial premises. Standard commercial lease imposes "full repairing and insuring" (FRI) obligation on tenant - tenant responsible for ALL repairs including structure, even if in poor condition at start. Schedule of condition at start protects tenant from repairing pre-existing disrepair. Dilapidations Protocol (2012) governs process. Professional survey essential near lease end.
Tenant's Repair Obligations
Define extent of tenant's repair duties. Standard commercial lease: "Full Repairing and Insuring" (FRI) - tenant keeps premises in good and substantial repair and condition. Includes internal and external repairs, structure, services, decorations. Alternative for older/secondary premises: repair limited by schedule of condition (tenant not required to put in better condition than at start). State: internal/external, structure, services, frequency of decorations (typically every 3-5 years internally, 5 years externally).
🔴 Critical
Schedule of Condition
Photographic survey recording condition of premises at lease start. Protects tenant from liability for pre-existing disrepair. Essential for older buildings or secondary locations where full repair would be disproportionate. Schedule prepared by surveyor, signed by both parties, annexed to lease. Repair obligation then becomes "to keep in no worse state of repair and condition than evidenced by Schedule of Condition." Without schedule, FRI obligation can be harsh for tenant.
🟡 Important
Landlord's Repair Obligations (if applicable)
In multi-let building, landlord typically responsible for structure, exterior, common parts, service media outside premises. These costs recovered through service charge. State what landlord will maintain: roof, foundations, external/load-bearing walls, common entrances, lifts, car parks, drainage. Single-let whole building FRI lease: tenant responsible for everything. Clear demarcation prevents disputes.
🟡 Important
Yielding Up/Dilapidations
Tenant's obligation to return premises at lease end in required state of repair (subject to schedule of condition if applicable, fair wear and tear if expressly permitted). Must remove alterations/additions if required, make good damage, reinstate premises, comply with all covenants. Landlord can claim dilapidations (cost of remedying breaches). Dilapidations Protocol (2012) applies: landlord must serve schedule of dilapidations stating breaches and claimed costs, tenant can challenge, parties should try to settle. Diminution valuation may reduce claim.
🔴 Critical
Decorations Schedule
Obligation to internally decorate every [3-5] years and in final year of term with good quality materials in professional manner. Keeps premises presentable, maintains value. Externally every [5] years or as needed. Specify: frequency, standards required ("good quality materials", "professional and workmanlike manner"), colours (landlord's approval may be required). Regular decoration prevents deterioration, maintains tenant's enjoyment, protects landlord's asset.
🟡 Important
Access for Inspection & Repairs
Landlord's right to enter premises on reasonable notice (typically 24-48 hours except emergencies) to: inspect condition, carry out repairs landlord is responsible for, carry out repairs tenant has failed to do, carry out works to adjoining premises, show to prospective new tenants/purchasers (typically last 6 months of term). Tenant cannot unreasonably refuse access. Landlord must minimise disruption, comply with tenant's reasonable security/H&S requirements. Emergency access without notice in urgent cases.
🟡 Important
7. Insurance (4 items)
Buildings Insurance
Landlord must insure building against insured risks (fire, flood, storm, impact, explosion, etc.) for full reinstatement value. Tenant reimburses insurance premium (either directly or through service charge if multi-let). Must specify: what risks covered, whether terrorism/flood/subsidence included, requirement for landlord to produce policy details on request, consequences if premises damaged (rent suspension, rebuilding obligation, termination right if damage severe). Standard letting: landlord insures building, tenant insures contents/business interruption.
🔴 Critical
Insurance Rent Recovery
How tenant pays for insurance: either as separate sum on demand after landlord receives premium notice, or included in service charge for multi-let buildings. If separate: "Tenant shall pay Insurance Rent within 14 days of demand, being the cost of insuring the Building as reasonably determined by the Landlord's insurers." Tenant pays even if landlord could have negotiated cheaper cover (within reason). Landlord must provide evidence of premium on request.
🟡 Important
Tenant's Insurance Obligations
Tenant must maintain: contents insurance, public liability insurance (minimum £5-10 million), employer's liability if employees (£5 million minimum - legal requirement), business interruption/loss of rent insurance, plate glass insurance (if applicable). Tenant must: provide evidence of insurance to landlord annually, ensure landlord noted as interested party on policies, not do anything to invalidate landlord's buildings insurance. Doing anything that increases insurance premium = breach, tenant pays increase.
🟡 Important
Uninsured Risks & Termination
What happens if premises damaged by uninsured risk (e.g., terrorism where not covered, or insurer refuses to pay): typically either party can terminate lease if damage so severe premises unusable and won't be economic to repair. Must specify notice period (typically 6 months after damage). Without this clause, tenant could be stuck paying rent for unusable premises indefinitely. Protects both parties from impossible situation.
🔵 Recommended
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8. Alterations & Use Restrictions (5 items)
Alterations Policy
Controls tenant's ability to alter premises. Typical hierarchy: (1) Structural alterations - prohibited or requires landlord's consent; (2) Non-structural alterations - requires landlord's consent, not to be unreasonably withheld (Landlord and Tenant Act 1927 s.19(2) implies this); (3) Cosmetic alterations - may be permitted without consent or with consent. Tenant typically must: obtain planning permission/building regulations approval, use qualified contractors, provide drawings, reinstate at lease end if required, pay landlord's legal/surveyor costs.
🔴 Critical
Signage Rights
Tenant's right to display business signage on premises exterior or in common areas. Options: (1) With landlord's consent - landlord can control size, design, location; (2) Permitted within guidelines; (3) No external signage. Multi-let buildings often have signage policy to maintain appearance. Tenant may need planning permission for certain signs. Must specify: who pays for signage, requirement to maintain, removal/making good at lease end. Landlord wants to control building appearance, tenant needs business visibility.
🟡 Important
Subletting/Assignment Rights
Tenant's ability to sublet (part/whole) or assign (transfer) lease. Standard commercial lease position: (1) Assignment of whole - permitted with landlord's consent (not unreasonably withheld), subject to satisfactory references, possibly Authorised Guarantee Agreement (AGA) where outgoing tenant guarantees immediate assignee; (2) Subletting whole - usually permitted with consent; (3) Subletting part - often prohibited or heavily restricted; (4) Charging/mortgaging - usually requires consent. Landlord and Tenant Act 1988 requires landlord to respond to consent requests reasonably and promptly. Critical for tenant flexibility and business sales.
🔴 Critical
Prohibited Uses & Activities
List of activities tenant must not do: use for illegal/immoral purposes, cause nuisance to neighbours, overload floors/structure, store hazardous materials (without consent), obstruct common parts, cause environmental contamination, invalidate insurance or increase premiums, use premises for auctions/sales, allow anyone to sleep on premises (unless residential permitted), use for purposes requiring special licenses without obtaining them. Protects landlord's interests and other tenants. Breach can lead to forfeiture.
🟡 Important
Statutory Compliance
Tenant must comply with all statutes, regulations, bylaws relating to premises and tenant's use: planning laws (maintain permitted use), health and safety (H&S at Work Act 1974, Fire Safety Order), disability discrimination (Equality Act 2010 - reasonable adjustments), environmental protection, data protection (if handling data), licensing requirements, building regulations for any works. Tenant must obtain/maintain necessary licenses, consents, permits for business operations. Breach is landlord's concern as affects reversion value.
🔴 Critical
9. Landlord's Covenants (4 items)
Quiet Enjoyment
Landlord's promise that tenant can occupy premises without interruption from landlord or anyone claiming under landlord. Standard covenant in all leases: "The Landlord covenants with the Tenant that the Tenant paying the rents and performing the tenant covenants shall peaceably hold and enjoy the Premises without any interruption by the Landlord or any person lawfully claiming under or in trust for the Landlord." Doesn't protect against lawful exercise of landlord's reserved rights (access for repairs, etc.). Breach gives tenant damages claim.
🔴 Critical
Landlord's Repair/Service Obligations
If multi-let building, landlord's obligations to: maintain structure, exterior, common parts, service media serving premises, provide services (cleaning, lighting, heating common areas, security, lift service, landscaping, etc.). These costs recovered via service charge. Landlord must: perform obligations with reasonable skill and care, in timely manner, cause minimum disruption to tenants. Standards often referenced: "good and substantial repair", "to standard reasonably expected for building of this age, type and location".
🟡 Important
Insurance Obligations
Landlord must: insure building for full reinstatement value against insured risks with reputable insurer, maintain insurance continuously throughout lease term, use insurance proceeds to rebuild/reinstate (if economically feasible), provide copy of policy/premium receipt on tenant's reasonable request, not do anything to invalidate policy. If landlord fails to insure, tenant can insure and recover costs. Critical protection for both parties' interests in the building.
🔴 Critical
No Derogation from Grant
Landlord must not do anything that substantially interferes with tenant's use and enjoyment of premises for permitted purpose. Implied covenant in all leases. Examples of breach: blocking access, removing essential services (power, water), making excessive noise, creating nuisance. Doesn't prevent landlord exercising expressly reserved rights (access for repairs, development of retained areas). Tenant's remedy is injunction or damages. Protects tenant's ability to conduct business.
🔵 Recommended
10. Termination & Forfeiture (4 items)
⚠️ Forfeiture Must Follow Strict Procedure
Forfeiture (landlord's right to end lease and re-enter for tenant breach) is powerful but tightly controlled remedy. For non-payment of rent: landlord can forfeit if rent 21 days overdue (whether formally demanded or not). For other breaches: must serve Section 146 notice stating breach, requiring remedy (if capable of remedy), giving reasonable time to remedy. Tenant can apply to court for relief from forfeiture. Landlord loses forfeiture right by "waiving" breach (e.g., demanding/accepting rent after becoming aware of breach). Physical re-entry risky - court proceedings safer. Commercial Rent Arrears Recovery (CRAR) is alternative to forfeiture for rent arrears.
Forfeiture Rights
Landlord's right to re-enter premises and terminate lease if: (a) rent unpaid for 21 days whether demanded or not; (b) tenant breaches any covenant; (c) tenant becomes bankrupt/insolvent; (d) tenant (if company) enters liquidation, has administrator/receiver appointed. Forfeiture doesn't affect landlord's other rights (claim arrears, damages for breach). But landlord cannot forfeit for breach then also claim damages based on lease continuing. Section 146 Law of Property Act 1925 procedure must be followed for non-rent breaches.
🔴 Critical
Break Clause Exercise
If break clause included (see Section 3), specify procedure: tenant must serve written notice at least [6] months before break date, on break date: all rent and sums paid, tenant given up vacant possession, no subsisting breach of covenant, keys returned. Conditions precedent are strictly interpreted - failure to comply means break fails and lease continues. "Time is of the essence" for break notices. Must be served in accordance with notices clause. Consider whether break conditional or unconditional.
🟡 Important
Expiry/Non-Renewal
What happens at lease expiry depends on 1954 Act position: (1) If protected by 1954 Act (not contracted out): tenant has automatic right to request new lease at market rent. Landlord can only refuse on grounds specified in 1954 Act s.30 (e.g., tenant breach, landlord redevelopment, landlord occupation). Prescribed notice procedures must be followed. (2) If contracted out: lease simply ends on expiry date, no renewal right. Tenant must vacate. Important to state 1954 Act position clearly to avoid confusion.
🔴 Critical
Holding Over
If tenant remains in occupation after lease ends (whether with landlord's agreement or not): tenant becomes "tenant at will" or "tenant at sufferance" depending on circumstances. Typically: tenant pays rent at same rate as before (or higher if holding over without consent), tenant subject to same covenants, either party can terminate on short notice. Better to: avoid holding over by negotiating new lease before expiry, or landlord serves notice requiring tenant to vacate. Protects both parties from uncertain situation.
🔵 Recommended
11. General Provisions (5 items)
Notices Clause
How notices must be served under lease: in writing, by hand, recorded delivery post, or email to specified addresses. Must state: notice addresses for landlord and tenant, deemed service timescales (hand: on delivery; post: 2 working days after posting; email: 1 working day after transmission). Critical for break notices, rent review triggers, Section 146 notices, 1954 Act notices. Party can change notice address by giving notice. Law of Property Act 1925 s.196 provides default rules but express clause clearer.
🔴 Critical
Costs Provisions
Who pays costs of: (a) Preparing/completing lease - usually tenant pays landlord's reasonable legal costs and surveyor's fees; (b) Variations/consents - tenant pays landlord's costs; (c) Enforcement action - tenant pays landlord's legal costs if landlord successful in recovering arrears, serving Section 146 notice, taking enforcement action; (d) Disputes - typically each party pays own costs unless court orders otherwise. Landlord can add unpaid costs to rent and recover as rent arrears.
🟡 Important
Entire Agreement Clause
States that lease contains entire agreement between parties and supersedes all previous negotiations, representations, agreements. Standard clause: "This lease contains all terms agreed and supersedes any previous agreements, understandings or arrangements." Prevents tenant claiming landlord made oral promises not in written lease. If either party made specific representations they relied on, these should be expressly stated in lease. Protects both parties from disputes about what was/wasn't agreed.
🟡 Important
Governing Law & Jurisdiction
State that lease governed by English law (or Welsh law if Welsh premises) and parties submit to exclusive jurisdiction of English/Welsh courts. Standard clause: "This lease shall be governed by and construed in accordance with the law of England and Wales and the parties submit to the exclusive jurisdiction of the English courts." Provides certainty for interpretation and enforcement. Particularly important if landlord or tenant is overseas entity.
🟡 Important
Special Conditions
Any negotiated terms specific to this letting: parking arrangements (number/location of spaces), access hours and security arrangements, use of shared facilities (meeting rooms, kitchens), specific tenant improvements/alterations agreed, option to renew provisions, personal guarantees, rent-free periods, rent review cap or floor, specific insurance requirements, development rights, telecommunications installations. Captures anything not covered by standard clauses. Review carefully - these override standard terms if conflict.
🔵 Recommended
12. Execution Requirements (4 items)
⚠️ Leases Over 3 Years Must Be Executed as Deed
Any lease for term exceeding 3 years MUST be executed as deed to be valid (Law of Property Act 1925 s.52). Deed requirements: signed by parties in presence of witness, witnessed signature, delivered as deed (stated to be deed or clear from form). For companies: executed by director and secretary, or two directors, or director in presence of witness. Company seal no longer required. For individuals: signed in presence of witness who signs as witness. Leases 3 years or less can be created orally but written always advisable. Failing to execute as deed = lease unenforceable.
Execution by Landlord
Landlord signature provision: "Executed as a deed by [Landlord Name]". For individuals: signed, dated, witnessed (witness provides name, address, occupation). For companies: signed by director in presence of witness OR two directors OR director and secretary. Company's constitutional requirements must be met. Execution clause must be clear this is deed. Date of execution. If multiple landlords, each must execute. Essential for creating legal lease.
🔴 Critical
Execution by Tenant
Tenant signature provision: "Executed as a deed by [Tenant Name]". Same formalities as landlord execution: individual needs witness, company needs director + witness OR two directors OR director + secretary. Date of execution. Person signing for company must have authority. Board resolution may be needed for company. If multiple tenants, each must execute. Properly executed deed is binding and enforceable.
🔴 Critical
Execution by Guarantor (if applicable)
If guarantor providing security (see Section 1), guarantor must also execute lease as deed (or execute separate deed of guarantee). Same execution formalities apply. Guarantor's liability is joint and several with tenant - landlord can sue either/both for breaches. Guarantor remains liable even if tenant assigns lease (unless guarantee expressly limited to original tenant's occupation only). Essential protection for landlord with weak tenant covenant.
🟡 Important
Land Registry Registration (if applicable)
Leases over 7 years MUST be registered at Land Registry within 2 months of completion (Land Registration Act 2002). Failure to register means lease doesn't take effect as legal lease (only as agreement for lease). Shorter leases (under 7 years) don't require registration but advisable for clarity. Registration gives notice of lease to world, provides official record. Registration fee payable based on rent/premium. Landlord must provide official copy of title, provide consent if superior lease/mortgage requires it.
🔴 Critical
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Next Steps
Now that you've reviewed the compliance checklist, you have three options:
✅ Use Our Ready-Made Template (Recommended)
Save hours of legal research and drafting. Our professionally-crafted commercial office lease template covers all 54 compliance points with legally-sound wording. It includes comprehensive coverage of: parties and premises, lease term and security of tenure, rent and reviews, service charges, repairs and dilapidations, insurance, alterations and use, landlord covenants, termination and forfeiture, and execution requirements. Available in both Interview Mode (guided) and Editor Mode (direct editing) for just £10.
📝 Draft Your Own Procedure
Use this checklist as your guide, but remember: getting the legal wording correct is complex. UK commercial property law compliance, investigation requirements, hearing procedures, warning letter content, dismissal processes, and appeal rights require precise language. A single procedural error can result in unfair dismissal findings and 25% tribunal compensation uplifts for failure to follow UK commercial property law.
Use this checklist as your guide, but remember: getting the legal wording correct is complex. Commercial leases involve Landlord and Tenant Act 1954, Law of Property Act 1925, service charge accounting, rent review mechanisms, repair obligations, dilapidations liability, forfeiture procedures, and execution as deed requirements. A single drafting error can cost tens of thousands in disputes or lost rent.
⚖️ Book a Legal Consultation
For complex situations, high-value premises, multi-let developments, or long lease terms, consider booking a consultation with our legal professionals for personalized advice tailored to your specific circumstances.
For complex situations, high-value premises, multi-let developments, or long lease terms, consider booking a consultation with our legal professionals for personalized advice tailored to your specific circumstances.