Commercial Lease Agreement Template Uk

COMMERCIAL LEASE AGREEMENT TEMPLATE (UK)

1. DOCUMENT PREAMBLE & RECITALS

THIS COMMERCIAL LEASE AGREEMENT (the "Agreement") is made and entered into as of this [Day] day of [Month], [Year] (the "Effective Date"), by and between:

LANDLORD: [Landlord Legal Name], a [Landlord Corporate Structure, e.g., private limited company] incorporated under the laws of England and Wales, having its registered office at [Landlord Registered Address] (Company Registration Number: [Registration Number]) (hereinafter referred to as the "Landlord", which expression shall include its successors in title and assigns where the context so admits); and

TENANT: [Tenant Legal Name], a [Tenant Corporate Structure, e.g., private limited company] incorporated under the laws of England and Wales, having its registered office at [Tenant Registered Address] (Company Registration Number: [Registration Number]) (hereinafter referred to as the "Tenant", which expression shall include its permitted successors and assigns where the context so admits).

RECITALS:

A. The Landlord is the registered proprietor with absolute title of the freehold/leasehold interest of the property known as [Property Address, including Postcode] (the "Building"). B. The Landlord has agreed to let, and the Tenant has agreed to take, the Premises (as defined herein) for the Permitted Use subject to the terms, covenants, conditions, and reservations contained within this Agreement. C. This Agreement is intended to create a business tenancy to which the security of tenure provisions of Sections 24 to 28 of the Landlord and Tenant Act 1954 (as amended) [Select option: DO / DO NOT] apply, as formally evidenced by the statutory declaration and warning notice executed pursuant to the Regulatory Reform (Business Tenancies) (England and Wales) Order 2003.

NOW, THEREFORE, IT IS MUTUALLY AGREED AS FOLLOWS:

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2. OPERATIONAL DEFINITIONS

For the purposes of this Agreement, the following terms shall have the meanings ascribed to them below, unless the context requires otherwise:

1. "Break Date" means [Date of Break Clause, e.g., the fifth anniversary of the Term Commencement Date], or any such date specified pursuant to the tenant break option clause herein.
2. "Building" means the entirety of the property situated at [Property Address] including all structural elements, foundations, exterior walls, roof, and common parts.
3. "Business Day" means any day other than a Saturday, Sunday, or public holiday in England and Wales on which clearing banks are open for normal commercial business in London.
4. "Common Parts" means those parts of the Building designated by the Landlord from time to time for the common use and enjoyment of the tenants and occupiers of the Building and their invitees, including entrance halls, corridors, stairwells, lifts, and lavatories.
5. "Insurance Rent" means the aggregate sum equivalent to the proportion reasonably determined by the Landlord of the cost of insuring the Building and the Premises pursuant to Clause 3.
6. "Interest Rate" means four per cent (4%) per annum above the base lending rate of [Bank Name, e.g., Barclays Bank Plc] from time to time, accruing on a daily basis both before and after any judgment.
7. "Permitted Use" means use as [Specify Permitted Use, e.g., B1 Business Offices / A1 Retail Shop] and for no other purpose whatsoever within the Town and Country Planning (Use Classes) Order 1987 (as amended).
8. "Premises" means that part of the Building situated on the [Floor Number, e.g., second] floor and known as [Suite/Unit Number, e.g., Suite 4B], as more particularly delineated edged red on the plan annexed hereto (the "Plan"), including all internal non-load-bearing partitions, window glass, and floor coverings.
9. "Rent" means the annual rent of [Amount in Words] (£[Numerical Amount]) subject to review pursuant to the Rent Review provisions herein.
10. "Rent Commencement Date" means [Date, e.g., the 14th day following the Effective Date].
11. "Service Charge" means the total expenditure incurred, or reasonably estimated to be incurred, by or on behalf of the Landlord in providing the Services, maintaining, repairing, lighting, cleaning, and managing the Common Parts and the Building.
12. "Services" means the services provided by the Landlord as set out in Schedule [Schedule Number] of this Agreement.
13. "Term" means a term of [Number] years commencing on the [Start Date] and expiring on the [End Date] inclusive.
14. "VAT" means Value Added Tax chargeable under the Value Added Tax Act 1994 and any similar replacement or additional tax.

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3. SUBSTANTIVE TERMS & OBLIGATIONS

3.1 Demise and Rent

1. The Landlord hereby demises the Premises to the Tenant for the Term, yielding and paying therefor:
   • a. The Rent, payable by equal quarterly payments in advance on the usual quarter days ([25 March, 24 June, 29 September, and 25 December]) or by equal monthly instalments in advance on the first day of each calendar month, without any deduction, set-off, or counterclaim whatsoever;
   • b. The Insurance Rent, payable within fourteen (14) days of written demand accompanied by relevant copy invoices;
   • c. The Service Charge, payable in advance on the dates specified by the Landlord; and
   • d. All applicable VAT chargeable on the Rent, Insurance Rent, and Service Charge.
2. The Tenant shall pay interest at the Interest Rate on any payment of Rent or other monies due under this Agreement that remains unpaid for more than seven (7) days after the due date, such interest to accrue from day to day from the due date down to the date of actual payment.

3.2 Tenant Covenants

The Tenant covenants with the Landlord throughout the Term, and so long thereafter as the Tenant remains in occupation of or holds an interest in the Premises, as follows:

1. To Pay Rent: To pay the Rent, Insurance Rent, and Service Charge at the times and in the manner stipulated without deduction.
2. Repair and Maintenance: To keep the interior of the Premises in good and substantial repair, condition, and decoration (fair wear and tear excepted), and to make good any damage caused by the act, neglect, or default of the Tenant, its employees, agents, or invitees.
3. Yielding Up: At the expiration or sooner determination of the Term, to quietly yield up the Premises to the Landlord in such good and substantial repair and condition as is consistent with the Tenant’s covenants herein, and to remove all signage, trade fixtures, and fittings installed by the Tenant, making good any damage caused by such removal.
4. Alterations: Not to make any structural alterations or additions to the Premises whatsoever, nor to alter the external appearance of the Building. Not to make non-structural internal alterations without the prior written consent of the Landlord (such consent not to be unreasonably withheld or delayed), acting pursuant to Section 19(2) of the Landlord and Tenant Act 1927.
5. Alienation: Not to assign, underlet, charge, or part with or share possession or occupation of the whole or any part of the Premises, except that the Tenant may assign the whole of the Premises with the prior written consent of the Landlord, such consent not to be unreasonably withheld or delayed.
6. Statutory Compliance: To comply with all statutes, statutory instruments, European Union directives (where applicable), planning permissions, and fire safety regulations affecting the Premises or the use thereof.
7. Indemnity: To keep the Landlord fully and effectively indemnified against all losses, claims, demands, actions, proceedings, damages, costs, or expenses arising out of any breach or non-observance by the Tenant of the covenants, conditions, and agreements contained herein.

3.3 Landlord Covenants

The Landlord covenants with the Tenant as follows:

1. Quiet Enjoyment: That the Tenant, paying the Rent and performing and observing the covenants on the Tenant's part herein contained, shall peaceably and quietly hold and enjoy the Premises during the Term without any lawful interruption by the Landlord or any person rightfully claiming through, under, or in trust for the Landlord.
2. Insurance: To insure the Building (excluding the Tenant's trade fixtures) against loss or damage by fire, tempest, flood, and other standard commercial risks under a comprehensive policy with a reputable insurance office, subject to such excesses and conditions as the insurers may impose.

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4. DEFAULT, TERMINATION, AND REMEDIES

4.1 Events of Default

Each of the following events shall constitute an "Event of Default":

1. The Rent, Insurance Rent, or Service Charge, or any part thereof, remains unpaid for twenty-one (21) days after becoming due (whether formally demanded or not).
2. The Tenant breaches or fails to observe or perform any other covenant, obligation, or restriction contained in this Agreement and fails to remedy such breach within thirty (30) business days following receipt of written notice from the Landlord specifying the breach and requiring its remedy.
3. The Tenant passes a resolution for winding up (other than for the purpose of a solvent amalgamation or reconstruction), or a winding-up order is made by a court of competent jurisdiction, or an administration order is made, or a receiver, administrative receiver, or manager is appointed over the whole or any substantial part of the Tenant's assets, or the Tenant makes any voluntary arrangement with its creditors or becomes subject to any statutory insolvency procedure in any jurisdiction.
4. Any execution or distress is levied on any goods or chattels of the Tenant upon the Premises.

4.2 Landlord’s Remedies and Forfeiture

1. If an Event of Default occurs, the Landlord may, at any time thereafter, serve formal notice or exercise its right to re-enter the Premises or any part thereof in the name of the whole, and thereupon the Term shall absolutely determine, but without prejudice to any right of action or remedy of the Landlord in respect of any antecedent breach of the covenants by the Tenant.
2. The exercise of the right of re-entry shall be without prejudice to the Landlord’s right to claim damages for loss of future rent and other prospective losses resulting from the determination of the Term.
3. Nothing in this Clause shall restrict the Landlord from pursuing any other legal or equitable remedy available under the laws of England and Wales, including debt action for recovery of arrears and statutory interest.

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5. BOILERPLATE LEGAL PROVISIONS

1. Severability: If any provision of this Agreement is held to be invalid, illegal, or unenforceable by any court or administrative body of competent jurisdiction, such provision shall be deemed modified to the minimum extent necessary to make it valid, legal, and enforceable. If such modification is not possible, the relevant provision shall be deemed deleted. The remaining provisions of this Agreement shall continue in full force and effect.
2. Entire Agreement: This Agreement constitutes the entire agreement between the parties relating to its subject matter and supersedes and extinguishes all previous drafts, agreements, arrangements, and understandings between them, whether written or oral, relating to its subject matter. The Tenant acknowledges that it has not entered into this Agreement in reliance upon any representation, warranty, or undertaking made by or on behalf of the Landlord which is not expressly set out herein.
3. Force Majeure: Neither party shall be in breach of this Agreement nor liable for delay in performing, or failure to perform, any of its obligations under this Agreement if such delay or failure result from events, circumstances, or causes beyond its reasonable control, including acts of God, flood, drought, earthquake or other natural disaster, epidemic or pandemic, terrorist attack, civil war, nuclear, chemical or biological contamination, or strikes, lock-outs, or other industrial disputes (excluding industrial disputes involving the workforce of the party seeking to rely on this clause).
4. Governing Law: This Agreement and any dispute or claim arising out of or in connection with it or its subject matter or formation (including non-contractual disputes or claims) shall be governed by, and construed in accordance with, the laws of England and Wales.
5. Dispute Resolution:
   • a. The parties shall attempt in good faith to resolve any dispute or claim arising out of or relating to this Agreement promptly through negotiations between senior executives of the parties.
   • b. If the matter is not resolved through negotiation within thirty (30) Business Days of the dispute arising, the parties shall attempt to settle the dispute by mediation in accordance with the Model Mediation Procedure of the Centre for Effective Dispute Resolution (CEDR).
   • c. If the dispute is not resolved by mediation within sixty (60) Business Days of the commencement of the mediation, each party irrevocably agrees that the courts of England and Wales shall have exclusive jurisdiction to settle any such dispute or claim.
6. Notices: Any notice required to be given under this Agreement shall be in writing and shall be delivered personally, sent by pre-paid first-class post or recorded delivery, or sent by commercial courier to the registered office or principal place of business of the receiving party.

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6. FORMAL EXECUTION BLOCK

IN WITNESS WHEREOF, the parties hereto have executed this Commercial Lease Agreement by their duly authorised representatives as of the Effective Date.

LANDLORD:

Executed as a Deed by [Landlord Legal Name]
acting by:

____________________________________________________
Director Signature

____________________________________________________
Print Name: `[Director Name]`

In the presence of:

____________________________________________________
Witness Signature

____________________________________________________
Witness Name: `[Witness Name]`

____________________________________________________
Witness Address: `[Witness Address]`

____________________________________________________
Witness Occupation: `[Witness Occupation]`

Date: [Date of Execution]

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TENANT:

Executed as a Deed by [Tenant Legal Name]
acting by:

____________________________________________________
Director / Authorised Signatory Signature

____________________________________________________
Print Name: `[Signatory Name]`

Title: `[Signatory Title]`

In the presence of:

____________________________________________________
Witness Signature

____________________________________________________
Witness Name: `[Witness Name]`

____________________________________________________
Witness Address: `[Witness Address]`

____________________________________________________
Witness Occupation: `[Witness Occupation]`

Date: [Date of Execution]