Simple Commercial Lease Template for England and Wales

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Key Requirements PROMPT example:

Simple Commercial Lease

"I need a Simple Commercial Lease for a retail unit in Manchester city centre, with a 5-year term starting March 2025, including break clauses at years 2 and 4, and specific provisions for signage rights and extended trading hours."

Document background
A Simple Commercial Lease is designed for straightforward commercial property lettings in England and Wales, particularly suitable for small to medium-sized businesses and private landlords. This document type is commonly used when parties require a clear, uncomplicated agreement without the extensive provisions typically found in institutional leases. It covers essential elements such as rent, repair obligations, insurance, and permitted use, while remaining compliant with key legislation including the Landlord and Tenant Act 1954. The document is particularly useful for shorter-term lettings or where the commercial relationship is relatively straightforward.
Suggested Sections

1. Parties: Details of landlord and tenant, including registered addresses

2. Background: Brief context of the lease arrangement

3. Definitions: Key terms used throughout the lease

4. Demise: Description of the property being leased

5. Term: Duration of the lease

6. Rent: Rent amount and payment terms

7. Tenant's Covenants: Tenant's obligations under the lease

8. Landlord's Covenants: Landlord's obligations under the lease

9. Insurance: Insurance obligations and arrangements

Optional Sections

1. Break Clause: Early termination provisions - used when parties want flexibility to end the lease early

2. Rent Review: Provisions for adjusting rent - typically included for leases over 3 years

3. Service Charge: Provisions for shared services and recovery of costs - included when property is part of larger building or estate

Suggested Schedules

1. Schedule 1: Property Description: Detailed description of the premises including plans

2. Schedule 2: Rights Granted: Specific rights granted to tenant (e.g., parking, access)

3. Schedule 3: Rights Reserved: Rights retained by landlord

4. Schedule 4: Service Charge: Detailed service charge provisions and calculations

5. Schedule 5: Permitted Use: Specified uses of the property

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions
Clauses
Relevant Industries
Relevant Teams
Relevant Roles
Industries

Landlord and Tenant Act 1954 (Part II): Primary legislation governing security of tenure for business tenants and procedures for lease renewal and termination

Law of Property Act 1925: Establishes fundamental property law principles and requirements for creation of legal interests in land

Landlord and Tenant (Covenants) Act 1995: Addresses privity of contract and estate, assignment of leases and release of guarantors

Regulatory Reform (Business Tenancies) (England and Wales) Order 2003: Modifies aspects of the 1954 Act and sets out procedures for contracting out of security of tenure

Landlord and Tenant Act 1985: Covers service charge provisions and landlord's repairing obligations

Landlord and Tenant Act 1988: Deals with consent for assignments and subletting

Defective Premises Act 1972: Imposes duties in relation to defective premises and potential liability for defects

Health and Safety at Work Act 1974: Sets out health and safety requirements that affect commercial premises

Control of Asbestos Regulations 2012: Regulates the management and handling of asbestos in commercial properties

Energy Performance of Buildings (England and Wales) Regulations 2012: Requires energy performance certificates and sets minimum energy efficiency standards

Equality Act 2010: Ensures non-discrimination and reasonable adjustments for disabled persons in relation to property

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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