Whether you are letting out office space, retail premises, or industrial units, the lease must be carefully drafted to protect your financial interests and minimise the risk of disputes.

At Bennett Oakley Solicitors, our commercial property team has extensive experience in negotiating, drafting, and advising on all types of commercial leases. We work closely with landlords and tenants across Sussex and beyond, providing clear, practical, and commercially focused advice to ensure your lease is legally compliant and tailored to your needs.

The Basic Components of a Commercial Lease

Most commercial leases will contain the following:

• The full names and details of the landlord and tenant (or lessor and lessee)
• A clear description of the premises being leased
• The duration of the lease (term)
• The rent amount, payment frequency, and method of payment
• Tenant’s covenants (obligations such as repairs and permitted use)
• Landlord’s covenants (obligations such as providing access and maintaining insurance)
• Rights granted and reservations retained

Protecting Your Interests – The Landlord

To protect your property and financial security, ensure that your lease contains adequate provisions for:

• Regular rent reviews to keep rental income in line with market value
• Clear repair and alterations clauses to ensure the property is maintained to an agreed standard
• A licence to assign or sublet, if you are prepared to allow this
• Comprehensive insurance requirements to protect the building and your investment
• Detailed permitted and prohibited uses of the premises
• Dispute resolution procedures to resolve conflicts quickly and cost-effectively

Protecting Your Interests – The Tenant

When leasing commercial premises, a tenant must take extra care to protect their interests from the outset, as the property directly impacts their livelihood. Key considerations include:

• Clear responsibility for maintenance and repairs – understanding exactly which areas you are responsible for
• Confirmation of the landlord’s insurance arrangements and whether these are adequate
• Agreed rent review procedures so there are no unexpected increases
• A break clause to allow early termination if business needs change
• Renewal terms so you have security for the future
• Clear dispute resolution processes

Important Tip

Before signing any agreement, conduct thorough due diligence regarding the condition of the property. Engage a qualified surveyor to draw up a Schedule of Condition and ensure both parties agree on the property’s original state to avoid future disputes.

Do I Need Legal Advice?

Commercial leases are far more complex than residential leases and are governed by the Landlord & Tenant Act 1954. It is essential to obtain legal advice, whether you are a landlord or tenant.

At Bennett Oakley Solicitors, we have nearly 60 years of experience in negotiating, drafting, and renewing commercial leases as well as resolving disputes that arise from them. We are here to protect your interests and help you secure the best possible terms.