Commercial Lease Solicitors

+ What are the Main Areas Covered in a Commercial Lease?

A carefully prepared lease will outline each party’s rights and responsibilities in clear terms. Some of the most important areas include:

• Length of the lease
• Rent and payment terms
• Service charges and how they’re calculated
• Responsibility for repairs and maintenance
• Alterations to the property and any restrictions
• Permitted use of the premises

Our Commercial Property Lease Solicitors will ensure these terms are properly negotiated, aligned with your commercial objectives, and drafted to minimise the risk of disputes in the future.

+ What are the Main Types of Commercial Leases Used in the UK?

When entering into a commercial lease, it’s important to understand the structure of the agreement and how responsibilities are divided. Some of the most common types of commercial lease include:

• Full Repairing and Insuring (FRI) Lease – The tenant agrees to cover all repairs and building insurance. This is one of the most widely used lease formats in commercial property.
• Internal Repairing Lease – The tenant is responsible for the interior of the property, while the landlord retains responsibility for the structure and exterior.
• Ground Lease – A long-term lease of land, where the tenant may build on or develop the site. These leases are often used in larger commercial developments.
• Lease with a Break Clause – Allows the landlord or tenant to end the lease early at a specific time, subject to certain conditions.

Each type of lease comes with different legal and financial implications. Our Commercial Lease Solicitors in Burnley can guide you through your options and ensure the lease you enter into is right for your property or your business.

+ Should I Include a Break Clause in a Commercial Lease?

A break clause allows the lease to be brought to an end early, either by the landlord, the tenant or both parties. It offers flexibility and can be particularly useful if you’re starting a new business, scaling up quickly or unsure how long you’ll need the premises.

Without a break clause, you may be locked into a lease for several years, even if your circumstances change. Including the right break option from the start gives you the freedom to adapt without risking a costly dispute.

At Farnworth Rose, our Commercial Lease Solicitors will advise you on whether a break clause is appropriate, and ensure it is clearly drafted to protect your position and reduce uncertainty later on.

+ Do I Have to Pay Stamp Duty Land Tax on a Commercial Lease?

You may need to pay Stamp Duty Land Tax (SDLT) when taking on a commercial lease, depending on the rent, the length of the term, and whether VAT is charged. HMRC uses these factors to calculate the lease’s net present value (NPV), which determines how much tax is due.

If SDLT is payable, it must be reported to HMRC within 14 days of completing the lease. Missing this deadline could lead to penalties or interest.

Our Commercial Property Lease Solicitors will assess whether SDLT applies, calculate the correct amount, and handle the return on your behalf, giving you peace of mind that everything has been taken care of properly and on time.

+ What Are My Rights When Renewing an Existing Lease?

If your lease is protected under the Landlord and Tenant Act 1954, you will usually have the right to renew it when the term ends. A landlord can only refuse renewal on limited legal grounds, such as serious breaches of the lease or an intention to redevelop the property.

Renewals can be a key moment to renegotiate terms or clarify long-standing issues, so it’s important to get the right advice before any notice is served. Our Commercial Lease Solicitors will guide you through the renewal process, protect your position, and help ensure the new lease supports your business moving forward.

+ Can I Make Changes to the Property During My Lease?

Tenants often need to make changes to suit their business, whether that’s installing signage, adapting internal layouts or upgrading facilities. Most commercial leases do allow alterations, but typically only with the landlord’s written consent.

Smaller, non-structural changes are more likely to be approved informally, while structural or external works usually require a formal Licence for Alterations. It’s important not to carry out works without permission, as doing so could lead to a breach of the lease and potential enforcement action.

Our Commercial Lease Solicitors will review the lease terms with you, advise on what changes are permitted, and help you secure the correct consents. If a licence is required, we’ll draft or review the documentation and make sure the final agreement accurately reflects what has been agreed.

+ Can I Transfer or Assign My Commercial Lease to Someone Else?

Most commercial leases allow a tenant to assign their lease to another party, but only with the landlord’s written consent. The landlord may assess the financial position of the incoming tenant and may impose conditions, such as a rent deposit or guarantor. This process is usually formalised through a licence to assign.

Our Commercial Lease Solicitors can help you review the lease, apply for consent, and ensure the assignment is legally valid and protects your position moving forward.

+ What Is a Schedule of Condition and Do I Need One?

A schedule of condition is a detailed record of a property’s state at the start of the lease. It’s often used to limit a tenant’s repair obligations, especially in Full Repairing and Insuring (FRI) leases. Without one, you may be required to return the property in better condition than when you took it on.

We will advise you on whether a schedule of condition is necessary, arrange for one to be prepared if needed, and ensure the lease clearly reflects its role in limiting your liability.

+ What Does Contracting Out of the 1954 Act Mean?

The Landlord and Tenant Act 1954 gives tenants of commercial property a statutory right to renew their lease when the term ends. However, in some cases, landlords and tenants agree to contract out of these protections, meaning the tenant gives up their right to automatic renewal.

Contracting out is often used when the landlord wants more control over future use of the property, or when the lease is short-term. While it may suit both parties in certain situations, tenants should understand the implications fully before agreeing, as it limits their long-term security in the premises.

To be legally valid, the contracting out process must follow a strict procedure, including the service of a formal notice by the landlord and a statutory declaration by the tenant before the lease is signed.

Our Commercial Lease Lawyers in Burnley will guide you through this process, ensure the documentation is handled correctly, and provide clear advice on whether contracting out is right for your situation.

+ What Happens at the End of a Lease?

When a commercial lease comes to an end, there are usually several important responsibilities to deal with. You may be required to reinstate the property to its original condition including removing any alterations or improvements made during your tenancy. The landlord may also serve a schedule of dilapidations, setting out the repairs or reinstatement works they expect you to complete.

If the lease includes a reinstatement clause or repairing obligations, you could be liable for significant costs if the property is not handed back in the required condition. In some cases, the landlord may request a financial settlement in place of physical repairs.

If your lease is protected under the Landlord and Tenant Act 1954, you may have the right to renew it, unless the landlord can rely on specific legal grounds to oppose a renewal.

Our Business Lease Solicitors will advise you on your obligations, handle any negotiations with the landlord, and help you minimise the risk of unexpected costs or disputes as the lease comes to an end.