New starter guide—entering into new commercial leases
New starter guide—entering into new commercial leases

The following Property guidance note provides comprehensive and up to date legal information covering:

  • New starter guide—entering into new commercial leases
  • What is a commercial lease?
  • A reminder of the difference between leases and licences
  • Short-term and temporary lettings
  • Heads of terms
  • Drafting the lease
  • Full repairing and insuring leases—the clear lease
  • Key lease terms
  • Will there be an agreement for lease?
  • What other documents are required?
  • more

This Practice Note is a new starter guide which sets out the key considerations, terms, and stages of the grant of a new business lease. This new starter guide provides an introduction and toolkit for entering into commercial leases and is a helpful starting point for trainee solicitors and those who are new to Property as a practice area. It focuses on the key issues that arise and includes links to other LexisNexis® sources and materials which provide more comprehensive information on the issues covered.

Where something is not covered in this guide, use the Topics tab or Topics dropdown menu to browse further practice area content.

What is a commercial lease?

A commercial lease generally refers to a written agreement which not only creates a tenancy of business premises, but also sets out the often detailed and extensive provisions which will govern the relationship between the landlord and the tenant.

This Practice Note outlines some of the issues to be considered when advising on a new commercial lease for a fixed term of a reasonable length where the tenant will be assuming a significant level of responsibility for the premises.

A reminder of the difference between leases and licences

Leases

There are two essential characteristics which must be present for a lease to exist:Ashburn Anstalt v Arnold and another [1988] 2 All ER 147

  1. it must grant exclusive possession of defined premises to a tenant, and

  2. it must be granted for a term which is definite or can be made definite by either party

The payment of rent is not essential for the creation of a lease.

Licences

Street v