What's in our leases?

Upwards-only open market reviews or RPI/CPI reviews.

Rent-free periods or rent concessions can be included, from the start of the term or from a later date, or as a rent reduction spread over defined periods during the term.

The landlord insures and the tenant reimburses the cost of the premium. The landlord must insure against these risks:

“fire (including subterranean fire), lightning, explosion, storm, flood, subsidence, landslip, heave, earthquake, burst or overflowing water pipes, tanks or apparatus, impact by aircraft or other aerial devices and any articles dropped from them, impact by vehicles, terrorism, riot, civil commotion and malicious damage to the extent, in each case, that cover is generally available on normal commercial terms in the UK insurance market at the time the insurance is taken out, and any other risks against which the Landlord reasonably insures from time to time, subject in all cases to any excesses, limitations and exclusions imposed by the insurers”

The tenant is not responsible for damage or destruction by an uninsured risk. An uninsured risk is an insured risk that was not insured against because cover was not generally available when the insurance was taken out or renewed, or because of a limitation or exclusion imposed by the insurers.

A lease of the whole of the landlord’s title includes the structure in the premises let to the tenant. A lease of part of the landlord’s title includes the interior only, and repair and decoration of the exterior are dealt with through a service charge.

The lease caters for various options on structural and non-structural alterations.

The tenant reinstates any alterations by the end of the term.

The assignment provisions strike a compromise between the position a landlord usually takes at the outset and the RICS Code for Leasing Business Premises (2020).

• The landlord can require an authorised guarantee agreement (AGA) only where it is reasonable to do so. This is not limited to cases where the incoming tenant is of lower financial standing than the outgoing tenant.
• The tenant must have paid all outstanding sums before assigning, but there is no requirement that there are no other outstanding breaches of the tenant’s obligations.
• There is no prohibition on assigning to group companies, and sharing the premises with group companies is allowed.
• The landlord cannot refuse consent on the basis that the assignment would reduce the value of the landlord’s interest in the premises.
• There is no fee for registering notice of an assignment.

• Underleases are outside the security of tenure provisions of the Landlord and Tenant Act 1954.
• Sub-underletting is prohibited.
• Underletting of part is an option.
• There is no fee for registering notice of an underletting.

An unconditional break right, or one conditional on any or all of:

• payment of the principal rent
• giving back the premises free of any lawful occupier
• a break penalty.

The landlord has the usual right to forfeit the lease if sums due under it are unpaid for 21 days, if the tenant breaches its obligations in the lease (limited to material breaches only), or if the tenant or a guarantor becomes insolvent.