£15UK law · England & Wales

UK Commercial Lease Template (Short-Form)

A short-form UK commercial lease for small business premises. Covers rent, term, 1954 Act position (security of tenure), repair covenant, rent review and break clause. £15.

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Legal background

A UK commercial lease creates a leasehold estate — a property right, not just a permission. Part II of the Landlord and Tenant Act 1954 gives business tenants a statutory right to renew unless the lease is "contracted out" via the prescribed warning notice and statutory declaration procedure. The Landlord and Tenant (Covenants) Act 1995 governs Authorised Guarantee Agreements (AGAs) on assignment. For terms over 7 years, registration with HM Land Registry is mandatory.

Sample excerpt

A short preview of the kind of clauses your generated document will contain. The full document is tailored to your inputs.

1. Demise. The Landlord demises to the Tenant the premises known as [Address] (the "Premises") for a term of [Years] years from [Start Date] (the "Term"). 2. Rent. The Tenant shall pay rent of £[Annual Rent] per annum, payable quarterly in advance on the usual quarter days, exclusive of VAT. 3. 1954 Act. The parties confirm that this Lease [is / is not] contracted out of sections 24–28 of the Landlord and Tenant Act 1954. [Where contracted out: A warning notice was served and a statutory declaration made before the date of this Lease in accordance with the procedure under section 38A.] 4. Repair. The Tenant shall keep the Premises in [full repair / repair save for inherent defects, fair wear and tear, and damage by insured risks] throughout the Term and yield up in like condition. 5. Insurance. The Landlord shall insure the building against the standard insured risks. The Tenant shall reimburse the Landlord by way of insurance rent. 6. Alienation. The Tenant shall not assign the whole of the Lease without the prior written consent of the Landlord (such consent not to be unreasonably withheld), subject to the Tenant entering into an Authorised Guarantee Agreement under section 16 of the Landlord and Tenant (Covenants) Act 1995. 7. Forfeiture. The Landlord may re-enter the Premises and forfeit this Lease where rent is more than 21 days in arrears or there is a material breach of covenant, subject to section 146 of the Law of Property Act 1925.

What's in the template

✓Term (typically 1, 3, 5 or 10 years)
✓Annual rent and payment dates
✓1954 Act position — contracted out (with warning + declaration) or inside the Act
✓Repair covenant — full repairing or internal only
✓Rent review (none, fixed uplift, RPI or open-market)
✓Optional break clause and conditions
✓Insurance allocation (typically landlord insures, tenant pays insurance rent)
✓Alterations and assignment (with AGA where required)
✓Forfeiture (s.146 LPA 1925) and re-entry rights
✓HM Land Registry registration warning for terms >7 years

Who this is for

→Landlords letting small commercial premises
→Tenants taking on a first business premises and wanting balanced terms
→Property investors managing a small commercial portfolio
→Owner-occupiers letting surplus space

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Frequently asked questions

Should I contract out of the 1954 Act?

It depends on which side you're on. Landlords usually prefer contracting out (no statutory renewal right). Tenants usually prefer inside-the-Act protection. The template asks you and includes the warning notice + statutory declaration mechanism if contracting out.

Full repairing vs internal repair — which?

A "full repairing and insuring" (FRI) lease puts repair and insurance on the tenant — common for whole-building lets. For unit-within-building lets, internal repair only is more common, with the landlord handling the structure and insuring. Choose at generation.

Does this need to be registered at the Land Registry?

For terms over 7 years, registration with HM Land Registry is compulsory. The template flags this and points you at the registration form. For terms under 7 years (most short-form leases), no registration is required.

Is this suitable for retail?

For straightforward retail units, yes. For shopping centres, branded estates or anchor tenants, you typically need a more complex lease (turnover rent, service charge schedule, restrictions). Take advice for those.

These templates are general legal information, not bespoke legal advice. For high-value or unusual matters, ask a solicitor to review.