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 subletting agreements: Ensure you don't miss any essential UK commercial property law requirements
2. Review existing agreements: Audit your current subletting arrangements against all 61 compliance points
3. Prepare for subletting: Verify your agreement is legally compliant before the subtenant takes occupation
🚨 CRITICAL: Landlord Consent Required
Before subletting any commercial premises, you MUST obtain your landlord's written consent. Most commercial leases prohibit subletting without consent. Subletting without permission is a breach of your head lease and can lead to forfeiture (loss of your lease). Always check your head lease terms and obtain written consent before the subtenant takes occupation.
⚠️ Understanding Importance Levels
🔴 Critical: Must have - legal requirement or creates serious risk if omitted
🟡 Important: Should have - best practice and strong legal protection
🔵 Recommended: Nice to have - enhances clarity and prevents disputes
1. Parties to the Agreement (5 items)
Tenant's Full Legal Name
The company or individual holding the head lease (the original tenant who is subletting). Must match the name on the head lease exactly. If a company, use the registered name from Companies House.
🔴 Critical
Tenant's Registered Address
The tenant's official address for correspondence and legal notices. For companies, this should be the registered office address. Essential for serving notices and legal proceedings.
🔴 Critical
Subtenant's Full Legal Name
The company or individual taking the sublease. If a company, verify the correct registered name at Companies House. The landlord may require references and financial checks on the proposed subtenant.
🔴 Critical
Subtenant's Registered Address
The subtenant's official address for correspondence and legal notices. For companies, use the registered office. This may differ from the premises being sublet. Essential for serving notices.
🔴 Critical
Company Registration Numbers
If either party is a company, include their Companies House registration number. Aids verification and demonstrates the parties are legitimate legal entities. Good practice for commercial agreements.
🔵 Recommended
2. Premises & Head Lease Details (5 items)
Full Description of Premises Being Sublet
Precise description of the exact area being sublet. Include full address, floor/unit number, approximate square footage, and any specific boundaries. If subletting part of premises, clearly delineate which areas are included.
🔴 Critical
Permitted Use of Premises
The business use permitted for the sublet premises. This MUST NOT exceed the permitted use in the head lease. Common uses: "general office purposes", "retail", "light industrial". Check your head lease for restrictions.
🔴 Critical
Excluded Areas (if applicable)
Specify any areas NOT included in the sublease (e.g., storage rooms, reception areas, car parking spaces). Clear exclusions prevent disputes about what the subtenant can access.
🟡 Important
Head Lease Reference
Reference to the head lease under which the tenant holds the property. Include the date of the head lease and the parties to it. The sublease is subject to and cannot exceed the terms of the head lease.
🟡 Important
Head Lease Expiry Date
The date the head lease expires. CRITICAL: The sublease term MUST end before this date (typically 1-3 months before). A sublease cannot extend beyond the head lease term. Always include buffer time.
🔴 Critical
3. Term & Duration (5 items)
Agreement Date
The date the subletting agreement is made/signed. This is typically the date both parties execute the document. May differ from the commencement date when the sublease term actually begins.
🔴 Critical
Commencement Date
The date the sublease term begins and the subtenant can take possession. Should only be after landlord consent is obtained. This is when rent obligations typically start.
🔴 Critical
Term Length
The duration of the sublease (e.g., 6 months, 1 year, 2 years). Common commercial sublease terms range from 6 months to 3 years. Must end before the head lease expires with adequate buffer time.
🔴 Critical
Expiry Date Calculation
The exact date the sublease term ends. Calculate carefully: if commencement is 1 January and term is 1 year, expiry is typically 31 December (not 1 January next year). Ensure this is before head lease expiry.
🟡 Important
Buffer Before Head Lease Expiry
Adequate time gap between sublease expiry and head lease expiry (typically 1-3 months minimum). This protects the tenant in case of overholding by the subtenant and allows time for dilapidations/handover.
🟡 Important
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4. Landlord Consent (5 items)
Head Landlord's Name and Address
Full legal name and address of the freeholder/head landlord. Required for obtaining consent and for the sublease records. The landlord may be a company, individual, or trust.
🔴 Critical
Consent Status (Obtained/Pending)
Whether landlord consent has been obtained or is still pending. DO NOT allow the subtenant to occupy until written consent is received. The sublease should be conditional on consent if not yet obtained.
🔴 Critical
Date Consent Obtained (if applicable)
Record the date written consent was received from the landlord. Keep the consent letter/licence to sublet with your important documents. This evidence is essential if disputes arise.
🔴 Critical
Landlord's Conditions on Consent
Any conditions the landlord has imposed on granting consent. Common conditions: guarantor requirements, rent deposit, specific covenants, registration fees. The subtenant should agree to comply with these conditions.
🟡 Important
Landlord's Consent Fees
Who pays the landlord's legal and administrative fees for granting consent. Typically the tenant pays, but this cost is often passed to the subtenant. Specify the arrangement clearly to avoid disputes.
🟡 Important
5. Rent & Payment Terms (6 items)
Annual Rent Amount
The yearly rent payable by the subtenant (exclusive of VAT unless stated). Commercial rents are usually quoted as annual figures. State clearly whether the amount is exclusive or inclusive of VAT.
🔴 Critical
Payment Frequency
How often rent is paid: monthly, quarterly, or annually. Monthly in advance is most common for subletting. Quarterly in advance (on usual quarter days) is traditional for commercial leases.
🔴 Critical
Payment Due Date
The specific day rent is due each period (e.g., "1st day of each month", "usual quarter days"). Clear due dates prevent disputes about late payment and trigger points for breach notices.
🟡 Important
First Payment Date
The date the first rent payment is due. May be the commencement date or an alternative date if not starting on a standard payment date. Pro-rata calculations may apply for partial periods.
🔴 Critical
Payment Method
How rent should be paid: bank transfer (most common), standing order, direct debit, or cheque. Bank transfer is standard for commercial properties. Include bank details or confirm these will be provided separately.
🔵 Recommended
Rent Review Provisions
Whether and how rent can be reviewed during the term. Options: no review, fixed annual increases, RPI-linked, or open market review. Rent review terms cannot exceed those in the head lease.
🟡 Important
6. Deposit & Security (4 items)
Deposit Amount
The security deposit payable by the subtenant. Typically 3-6 months' rent for commercial properties. Unlike residential deposits, commercial deposits are NOT protected by statutory deposit schemes.
🔴 Critical
Deposit Holding Arrangements
How the deposit will be held (typically by the tenant). Consider whether interest accrues and to whom. Some agreements specify a separate account, though this is not legally required for commercial leases.
🟡 Important
Deposit Deduction Circumstances
Circumstances in which deductions can be made from the deposit: unpaid rent, dilapidations, breach of covenants, damage beyond fair wear and tear. Clear terms prevent disputes at the end of the sublease.
🟡 Important
Deposit Return Timeframe
When the deposit (less any lawful deductions) will be returned after the sublease ends. Typically within 14-28 days of vacation, subject to inspection and settlement of final accounts.
🔵 Recommended
7. Service Charge & Utilities (5 items)
Service Charge Arrangements
Whether the subtenant pays a service charge and how it's calculated. Options: fixed amount, proportionate share of head lease charges, or included in rent. If the head lease includes service charges, these are typically passed through.
🟡 Important
Utilities Responsibility
Who pays for electricity, gas, water, and other utilities. Common arrangements: subtenant pays directly to suppliers, or tenant pays and recharges to subtenant. Clarify meter readings and account transfers.
🟡 Important
Business Rates Responsibility
Who is responsible for paying business rates (non-domestic rates) to the local authority. Usually the occupier (subtenant) is liable. The subtenant may need to register with the Valuation Office Agency.
🔴 Critical
Insurance Arrangements
Building insurance is typically arranged under the head lease. The subtenant may need to pay a proportionate share of the premium and must maintain their own contents/business insurance.
🟡 Important
VAT on Rent and Charges
Whether the tenant has elected to charge VAT on the rent. If the property is "opted to tax", VAT at 20% is added to rent and service charges. The subtenant should confirm their VAT recovery position.
🟡 Important
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8. Repair & Maintenance Obligations (4 items)
Subtenant's Repair Obligations
The extent of the subtenant's repair responsibilities. Options: internal decorative repair only, full internal repair, or minimal maintenance. The subtenant's obligations CANNOT exceed the tenant's obligations under the head lease.
🔴 Critical
Structural Repairs Responsibility
Clarify that structural repairs remain the responsibility of the head landlord or tenant under the head lease. The subtenant should not be liable for structural matters, roof, foundations, or external walls.
🟡 Important
Decoration Obligations
Requirements for internal decoration during and at the end of the term. Typical provisions: redecorate in the last year of the term, or maintain in good decorative condition throughout. Should align with head lease requirements.
🔵 Recommended
Reporting Defects
Obligation for the subtenant to report any defects or disrepair promptly. Important for maintaining the property and for the tenant's obligations under the head lease. Specify who should be notified and timeframes.
🔵 Recommended
9. Use & Restrictions (5 items)
Prohibited Uses and Activities
Activities the subtenant must not carry on. Common prohibitions: residential use, storage of hazardous materials, uses exceeding planning permission, uses breaching head lease. List specific restrictions clearly.
🔴 Critical
Alterations Policy
Whether the subtenant can make alterations and what consents are required. Options: no alterations, minor non-structural with consent, or with prior written consent from both tenant and head landlord. Should be more restrictive than head lease.
🟡 Important
Assignment/Further Subletting by Subtenant
Whether the subtenant can assign or further sublet the premises. Usually prohibited or heavily restricted. If permitted, typically requires consent of both tenant and head landlord.
🟡 Important
Compliance with Head Lease Covenants
Requirement for the subtenant to comply with all relevant covenants in the head lease. The subtenant should be provided with a copy of relevant head lease provisions. Breach by subtenant puts tenant's head lease at risk.
🔴 Critical
Signage Restrictions
Whether the subtenant can display signage and what approvals are needed. Usually requires consent of tenant, head landlord, and compliance with planning regulations. Consider building management rules.
🔵 Recommended
10. Yield Up & Dilapidations (4 items)
Condition at End of Term
The condition in which the subtenant must return the premises. Standard: "good repair, fair wear and tear excepted". Alternative: full repair without fair wear and tear exception (more onerous for subtenant).
🔴 Critical
Schedule of Condition
Whether a photographic schedule of condition is attached recording the state of the premises at the start. Highly recommended to limit dilapidations liability and prevent disputes about original condition.
🟡 Important
Removal of Alterations/Fittings
Whether the subtenant must remove alterations and fittings at the end of the term. If alterations were made with consent, the consent may specify whether reinstatement is required.
🟡 Important
Handover/Vacation Procedures
Process for handing back the premises: returning keys, meter readings, final inspection. Consider scheduling a joint inspection before the termination date to identify any issues early.
🔵 Recommended
11. Break Clauses & Forfeiture (4 items)
Tenant's Break Clause
Whether the tenant can terminate the sublease early. STRONGLY RECOMMENDED to protect against head lease termination or need to recover possession. Specify: earliest break date, notice period (typically 3-6 months), and conditions.
🟡 Important
Subtenant's Break Clause
Whether the subtenant can terminate the sublease early. Optional - provides flexibility for the subtenant but reduces security for the tenant. If included, specify: earliest break date, notice period, and conditions.
🔵 Recommended
Forfeiture Provisions
Right for the tenant to forfeit (end) the sublease for breach. Standard commercial provisions allow forfeiture for: non-payment of rent, breach of covenants, insolvency of subtenant. Notice requirements apply.
🔴 Critical
Consequences of Head Lease Termination
What happens to the sublease if the head lease ends (by forfeiture, surrender, or expiry). The sublease automatically ends when the head lease terminates. Consider notice provisions and subtenant's rights.
🟡 Important
12. Notices & General Provisions (5 items)
Notice Provisions
How notices must be given (personal delivery, first class post, email). Specify addresses for notices and when notices are deemed received. Standard: next working day for delivery, 2 working days for post.
🟡 Important
Entire Agreement Clause
Statement that the written agreement contains all the terms and supersedes prior negotiations. Prevents claims based on pre-contract representations or verbal agreements. Standard in commercial agreements.
🔵 Recommended
Variation Clause
Requirement that any changes to the agreement must be in writing and signed by both parties. Prevents disputes about informal variations or verbal agreements to change terms.
🟡 Important
Governing Law and Jurisdiction
Specify that English law applies and English courts have jurisdiction (for England/Wales properties). For Scottish properties, specify Scots law. Essential for legal certainty and enforcement.
🔴 Critical
Severability Clause
If one provision is found invalid, the rest of the agreement continues in force. Standard protective clause that prevents the entire agreement failing if one clause is problematic.
🔵 Recommended
13. Execution & Signatures (4 items)
Signature Block for Tenant
Proper signature block with space for signature, printed name, and date. For companies, should be signed by a director or authorised signatory. Consider whether execution as a deed is required.
🔴 Critical
Signature Block for Subtenant
Proper signature block with space for signature, printed name, and date. For companies, should be signed by a director or authorised signatory. Both parties must sign for the agreement to be binding.
🔴 Critical
Witness Details (if executed as deed)
If the agreement is executed as a deed, witness signatures are required. Witness must be independent (not a party), include their name, address, and occupation. Electronic signatures may not be suitable for deeds.
🟡 Important
Copies for All Parties
Ensure all parties receive a signed copy of the agreement. The tenant should retain the original. The subtenant, head landlord (with consent), and any guarantors should each have copies for their records.
🟡 Important
⚡
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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 subletting agreement covers all 61 compliance points with legally-sound wording. It includes landlord consent provisions, head lease compliance clauses, proper forfeiture rights, and all essential protections. Available in both Interview Mode (guided) and Editor Mode (direct editing) for just £10.
📝 Draft Your Own Agreement
Use this checklist as your guide, but remember: getting the legal wording correct is complex. Landlord consent requirements, head lease compliance, forfeiture provisions, and break clauses require precise language. A single error can result in an unenforceable agreement or put your head lease at risk.
⚖️ Book a Legal Consultation
For complex situations, high-value properties, or unusual subletting arrangements, consider booking a consultation with our legal professionals for personalized advice tailored to your specific circumstances.