Commercial Property Lease Agreement Template Uk

COMMERCIAL PROPERTY LEASE AGREEMENT

1. Document Preamble & Recitals

This Commercial Property Lease Agreement (the "Agreement") is entered into and made effective as of [Effective Date] (the "Effective Date"), by and between:

LANDLORD: [Landlord Legal Name], a [Legal Entity Type, e.g., Limited Company / Individual], having its registered office at [Landlord Address] (hereinafter referred to as the "Landlord", which expression shall include its successors in title and permitted assigns); and

TENANT: [Tenant Legal Name], a [Legal Entity Type, e.g., Limited Company], registered in [Jurisdiction of Incorporation] under company number [Company Registration Number], having its registered office at [Tenant Address] (hereinafter referred to as the "Tenant", which expression shall include its successors in title and permitted assigns).

RECITALS:

WHEREAS: (A) The Landlord is the registered owner of the freehold/leasehold estate of the commercial property known as [Property Address, including postcode] (the "Property"). (B) The Landlord has agreed to let, and the Tenant has agreed to take on lease, the Property for the Term and upon the terms and conditions set forth hereinafter. (C) This Agreement is intended to create a business tenancy to which the provisions of Sections 24 to 28 of the Landlord and Tenant Act 1954 (as amended) [may apply / are excluded by mutual statutory declaration] in accordance with the legal status elected herein.

NOW, THEREFORE, in consideration of the mutual covenants, obligations, and valuable consideration hereinafter set forth, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:

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2. Operational Definitions

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

1. "Break Date" means [Date of Break Clause, if applicable], or any such alternative date stipulated pursuant to Clause 3.4 of this Agreement.
2. "Building" means the entirety of the structural edifice of which the Property forms a part, including all common areas, structural elements, foundations, exterior walls, and roof.
3. "Business Day" means a 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 and estate designated by the Landlord from time to time for the common use and enjoyment of the tenants and occupiers of the Building and their visitors.
5. "Deposit" means the sum of [Numerical Amount in Words] GBP (£[Numerical Amount]), paid by the Tenant to the Landlord as security for the performance of the Tenant’s obligations under this Agreement.
6. "Insured Risks" means fire, lightning, explosion, earthquake, storm, tempest, flood, burst pipes, impact, aircraft, riot, civil commotion, malicious damage, terrorism (to the extent commercially insurable), and such other risks as the Landlord may from time to time prudently insure against.
7. "Interest Rate" means [Number] percentage points 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.
8. "Permitted Use" means use as [Specify exact use class, e.g., E(g)(i) Offices / B2 General Industrial / Retailing], and for no other purpose whatsoever.
9. "Rent" means the initial annual rent of [Numerical Amount in Words] GBP (£[Numerical Amount]) exclusive of VAT, or such revised rent as may be determined pursuant to the provisions of this Agreement.
10. "Rent Commencement Date" means [Rent Commencement Date].
11. "Service Charge" means the reasonable proportion of the costs incurred by the Landlord in maintaining, repairing, lighting, cleaning, and managing the Common Parts and providing services to the Building, calculated in accordance with Schedule [Letter].
12. "Term" means the term of years certain commencing on [Term Start Date] and expiring on [Term End Date], inclusive.
13. "VAT" means Value Added Tax chargeable under the Value Added Tax Act 1994 and any replacement or similar tax levied in the United Kingdom.

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3. Substantive Terms & Obligations

3.1 Demise and Rent

1. The Landlord hereby demises and lets the Property 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 Service Charge, payable at such times and in such manner as the Landlord reasonably demands.
   • (c) All applicable VAT on the Rent, Service Charge, and any other sums payable under this Agreement.
2. The Tenant shall pay interest at the Interest Rate on any Rent or other sum due under this Agreement that remains unpaid for more than fourteen (14) days after its due date, calculated from the due date to the date of actual payment.

3.2 Tenant Covenants

The Tenant covenants with the Landlord throughout the Term (and so long as any obligations remain unperformed) as follows:

1. Payment of Outgoings: To pay all rates, taxes, assessments, and outgoings (including utility charges for gas, electricity, water, and telecommunications) imposed upon or in respect of the Property.
2. Repair and Maintenance: To keep the interior of the Property in good and substantial repair, decoration, and condition (damage by Insured Risks excepted, save to the extent that the insurance proceeds are vitiated by any act or default of the Tenant).
3. Alterations: Not to make any structural alterations or additions to the Property whatsoever. Not to make any non-structural interior alterations without the Landlord’s prior written consent, such consent not to be unreasonably withheld or delayed.
4. Alienation: Not to assign, underlet, charge, or part with possession of the whole or part of the Property, nor share occupation thereof, except that the Tenant may assign the whole of the Property with the prior written consent of the Landlord, acting reasonably.
5. Permitted Use: To use the Property strictly for the Permitted Use and for no other trade, business, or purpose.
6. Statutory Compliance: To comply with all statutes, statutory instruments, planning permissions, and fire safety regulations affecting the Property or its use.
7. Indemnity: To indemnify and keep indemnified the Landlord against all losses, claims, demands, actions, proceedings, damages, costs, or expenses arising out of any breach of the Tenant's covenants contained in this Agreement.

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 its part herein contained, shall quietly hold and enjoy the Property during the Term without any lawful interruption by the Landlord or any person rightfully claiming under or through the Landlord.
2. Insurance: To keep the Building (excluding the Tenant's trade fixtures and fittings) insured against the Insured Risks with a reputable insurance office in the full reinstatement cost thereof, and to use reasonable endeavours to procure that the interest of the Tenant is noted on the policy (if commercially available).

3.4 Rent Review

1. The Rent shall be reviewed on [Review Date] (the "Review Date") to the open market rent agreed between the Parties or, failing agreement within twenty-eight (28) days, determined by an independent surveyor acting as an expert appointed jointly by the Parties or, in default of agreement, by the President of the Royal Institution of Chartered Surveyors (RICS).

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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. Any Rent or other sum payable under this Agreement 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 of its material covenants, conditions, or obligations contained in this Agreement.
3. The Tenant (being a company) enters into liquidation (whether compulsory or voluntary, except for solvent amalgamation or reconstruction), passes a winding-up resolution, has a winding-up petition presented against it, has an administrator, administrative receiver, or receiver appointed over the whole or any part of its assets, makes an arrangement or composition with its creditors, or suffers any execution or distress to be levied on its goods.
4. The Tenant (being an individual) commits an act of bankruptcy or has a bankruptcy petition presented against them.

4.2 Notice and Cure Period

Upon the occurrence of an Event of Default (other than for non-payment of monetary sums), the Landlord may serve a formal written notice upon the Tenant specifying the nature of the breach. The Tenant shall have a period of thirty (30) Business Days from the date of receipt of such notice to cure the specified breach (the "Cure Period").

4.3 Landlord's Remedies and Forfeiture

1. If an Event of Default occurs and continues beyond any applicable Cure Period, or in the case of non-payment of rent continuing beyond twenty-one (21) days, the Landlord may at any time thereafter re-enter the Property (or any part thereof in the name of the whole) and thereupon the Term shall absolutely determine, without prejudice to any right of action or remedy of the Landlord in respect of any antecedent breach of the Tenant's covenants.
2. The Landlord’s right to forfeit this Agreement shall be exercisable by peaceable re-entry or by court proceedings, at the Landlord's absolute discretion.
3. All reasonable costs and expenses incurred by the Landlord (including legal fees on an indemnity basis) in connection with the remediation of defaults, the serving of statutory notices under Section 146 of the Law of Property Act 1925, and the recovery of arrears shall be fully reimbursed by the Tenant on demand.

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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 of competent jurisdiction, such provision shall be severed to the extent of such invalidity or unenforceability, and the remaining provisions shall continue in full force and effect as if this Agreement had been executed without the invalid provision.
2. Entire Agreement: This Agreement constitutes the entire agreement and understanding between the Parties relating to the subject matter hereof and supersedes any previous agreements, drafts, representations, or understandings, whether written or oral. Each Party acknowledges that it has not relied upon any oral or written representation not expressly incorporated into this Agreement.
3. Force Majeure: Neither Party shall be liable for any failure or delay in performing its obligations under this Agreement (excluding the obligation to pay Rent, Service Charges, and monetary sums) if such failure or delay arises from acts of God, war, terrorism, civil commotion, pandemic, governmental restrictions, or any other cause beyond the reasonable control of the affected Party.
4. Notices: Any notice required or permitted to be given under this Agreement shall be in writing and signed by or on behalf of the Party giving it. Notices shall be delivered personally, sent by pre-paid first-class post/recorded delivery, or transmitted by electronic mail to the registered office or designated address of the receiving Party. Notices shall be deemed received:
   • (a) If delivered personally, at the time of delivery;
   • (b) If sent by post, forty-eight (48) hours after posting;
   • (c) If sent by email, at the time of transmission (provided no delivery failure notification is received).
5. Governing Law and Jurisdiction: 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 [Jurisdiction, e.g., England and Wales]. The Parties irrevocably submit to the exclusive jurisdiction of the courts of [Jurisdiction] to settle any such dispute or claim.

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6. Formal Execution Block

IN WITNESS WHEREOF, the Parties have executed this Commercial Property Lease Agreement by their duly authorised representatives as of the Effective Date first written above.

LANDLORD:

Executed as a Deed by [Landlord Legal Name]
acting by a Director / Authorised Signatory:

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Signature of Director / Signatory

Name: [Print Name]
Title: [Title, e.g., Director]

In the presence of:
Witness Signature: __________________
Witness Name: [Witness Name]
Witness Address: [Witness Address]
Witness Occupation: [Witness Occupation]

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TENANT:

Executed as a Deed by [Tenant Legal Name]
acting by a Director / Authorised Signatory:

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Signature of Director / Signatory

Name: [Print Name]
Title: [Title, e.g., Director]

In the presence of:
Witness Signature: __________________
Witness Name: [Witness Name]
Witness Address: [Witness Address]
Witness Occupation: [Witness Occupation]