{"id":5328,"date":"2025-06-04T12:34:58","date_gmt":"2025-06-04T12:34:58","guid":{"rendered":"https:\/\/fasterdraft.com\/?post_type=product&#038;p=5328"},"modified":"2026-05-25T17:39:47","modified_gmt":"2026-05-25T17:39:47","slug":"business-property-lease-agreement-england","status":"publish","type":"product","link":"https:\/\/fasterdraft.com\/uk\/product\/business-property-lease-agreement-england","title":{"rendered":"Business Property Lease Agreement (England)"},"content":{"rendered":"<h2>What is a business property lease agreement?<\/h2>\n<p>A business property lease agreement is a type of tenancy agreement under which the landlord grants the tenant the right to exclusively occupy and use commercial property for business and commercial purposes in England or Wales.<\/p>\n<p>This business lease agreement can be used for renting out various types of commercial properties, including offices, warehouses, co-working spaces, etc.<\/p>\n<p>A standard agreement outlines key terms and conditions of the lease and mutual rights and responsibilities of the parties involved. The document helps to significantly prevent disputes between the parties and to make smooth tenancy arrangements.<\/p>\n<h2>Who can use this business lease agreement?<\/h2>\n<p>A standard business lease agreement template can be helpful for:<\/p>\n<ul>\n<li>property managers operating in the UK real estate market;<\/li>\n<li>landlords and letting agents looking to rent out a commercial or business unit;<\/li>\n<li>UK businesses searching for a solid business tenancy agreement to use;<\/li>\n<li>foreign property investors looking for a solid business lease agreement to get extra income.<\/li>\n<\/ul>\n<p>This agreement remains a popular legal template small businesses and commercial tenants use on a daily basis to ensure full compliance with the UK law, including the <a href=\"https:\/\/www.legislation.gov.uk\/ukpga\/Geo5\/15-16\/20\/contents\"><em>Law of Property Act 1925<\/em><\/a> and the <a href=\"https:\/\/www.legislation.gov.uk\/ukpga\/Eliz2\/2-3\/56\/contents\"><em>Landlord and Tenant Act 1954<\/em><\/a>.<\/p>\n<p>This document cannot be used, however, for renting out residential properties, such as flats or houses, or properties used for living. In such a case, an <a href=\"https:\/\/fasterdraft.com\/uk\/product\/assured-tenancy-agreement\"><em>assured tenancy agreement<\/em><\/a> or <a href=\"https:\/\/fasterdraft.com\/uk\/product\/logder-agreement-england\"><em>lodger agreement<\/em><\/a> should be used instead.<\/p>\n<h2>What should be included in a business lease agreement template\u200b?<\/h2>\n<p>A commercial business lease agreement\u200b requires the inclusion of certain elements to ensure the terms and conditions of the business tenancy are clear, precise and fully compliant with English law. These conditions include:<\/p>\n<h3>Property Description<\/h3>\n<p>The text of the business lease agreement should outline a brief property description, size and location, and a list of purposes for which the property can be used. For more details about the property, a separate plan should be attached to the lease.<\/p>\n<p>If the landlord plans to retain certain rights related to access or usage of the part or whole property, such retained rights should also be listed in the agreement. For example, the landlord may wish to retain the right to daily access to the property to maintain construction or renovation works on the property, etc.<\/p>\n<h3>Lease Term<\/h3>\n<p>Unlike residential assured tenancies in England and Wales that cannot have a fixed end date, the business property lease agreement should include the following:<\/p>\n<ul>\n<li>the commencement date of the lease;<\/li>\n<li>total duration of the lease in months or years; and<\/li>\n<li>the end date.<\/li>\n<\/ul>\n<h3>Rent Provisions<\/h3>\n<p>Every basic lease agreement template should outline how the tenant is supposed to make rental payments. For this purpose, the document shall define the following:<\/p>\n<ul>\n<li>amount of rent payment in pounds, excluding VAT;<\/li>\n<li>periods for which rent should be paid (every week, month or year);<\/li>\n<li>acceptable payment methods that tenant can use to make rent payments;<\/li>\n<li>the amount of interest rate that usually shall apply for any sum due by the tenant (usually the Bank of England base rate shall apply);<\/li>\n<li>list of any additional charges the tenant shall pay (for example, council tax, electricity, telephone or Internet);<\/li>\n<li>frequency and payment schedule for additional charges.<\/li>\n<\/ul>\n<h3>Termination Clause<\/h3>\n<p>The landlord should have the right to end the business tenancy prior to its set expiration date in the following circumstances:<\/p>\n<ul>\n<li>the rent or additional service charges remain unpaid for more than 14 days;<\/li>\n<li>there is a breach by the tenant of any obligation under the lease; or<\/li>\n<li>the tenant becomes the subject of a bankruptcy order or has an interim receiver.<\/li>\n<\/ul>\n<p>The landlord should first provide a prior written notice informing the tenant about the termination.<\/p>\n<h3>Assignment and Subletting<\/h3>\n<p>Depending on the arrangement between the parties, the provisions of the business lease agreement template may allow or fully prohibit the tenant from further subletting the commercial property to third parties.<\/p>\n<p>If subletting is possible upon the prior written approval from the landlord, in such a case, such an approval should be obtained first.<\/p>\n<h2>Why use a written business lease agreement?<\/h2>\n<p>By virtue of Section 54(2) of the <a href=\"https:\/\/www.legislation.gov.uk\/ukpga\/Geo5\/15-16\/20\/contents\"><em>Law of Property Act 1925<\/em><\/a>, a business lease agreement with the duration of less than 3 years does not require a written form. It means parties may agree on the lease terms and conditions verbally.<\/p>\n<p>However, most UK businesses and companies nowadays choose to have at least a simple business lease agreement to ensure the following:<\/p>\n<ul>\n<li>clarity of initially agreed terms, which is particularly important for long-term leases;<\/li>\n<li>protection of both landlord and tenant rights;<\/li>\n<li>prevention of potential disputes in the future; and<\/li>\n<li>division of responsibilities for care, repair and protection of the rented property between the parties.<\/li>\n<\/ul>\n<h2>Important legal considerations for commercial business lease agreements in England and Wales<\/h2>\n<p>Before entering a commercial lease agreement, parties should be aware of the following:<\/p>\n<h3>Deed<\/h3>\n<p>A standard business lease agreement is signed as a deed, which means that signatures of both parties should be witnessed by an independent witness.<\/p>\n<p>The text of the final deed should include the full name, occupation and signature of each witness. This could be a person of at least 18 years old and of sound mind.<\/p>\n<h3>Signatory<\/h3>\n<p>A business lease has legal consequences for the parties involved only if signed by the party who is an authorised representative. In particular:<\/p>\n<ul>\n<li>company &#8211; the deed should be signed by one director;<\/li>\n<li>partnership &#8211; the deed should be signed by an authorised partner by virtue of the partnership agreement.<\/li>\n<li>trust &#8211; the deed should be signed by a trustee.<\/li>\n<\/ul>\n<h3>Section 38A(3) of the Landlord and Tenant Act 1954<\/h3>\n<p>Some landlords may wish to contract out the statutory security of tenure that applies to commercial leases in England and Wales. A security of tenure is a tenant&#8217;s statutory right to remain in the property after expiration of the lease and request a new lease from the landlord.<\/p>\n<p>By contracting out the security of tenure, the landlord gets the right to recover possession of the property at the end of the lease without the need to prove statutory grounds for refusal of renewal.<\/p>\n<h2>How to customise this template with FasterDraft?<\/h2>\n<p>To get a fully customisable document template, follow a few easy steps below:<\/p>\n<ol>\n<li>Click the &#8220;Create Document&#8221; button.<\/li>\n<li>Answer simple questions in the form.<\/li>\n<li>Select a template&#8217;s format \u2013 a business lease extension agreement template Word or PDF.<\/li>\n<li>E-sign the document (for landlord).<\/li>\n<li>Make a payment.<\/li>\n<\/ol>\n<p>The template is ready for instant download immediately after the purchase.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>What is a business property lease agreement? A business property lease agreement is a type of tenancy agreement under which the landlord grants the tenant the right to exclusively occupy and use commercial property for business and commercial purposes in England or Wales. This business lease agreement can be used for renting out various types [&hellip;]<\/p>\n","protected":false},"featured_media":5332,"comment_status":"open","ping_status":"closed","template":"","meta":{"_acf_changed":false},"product_brand":[],"product_cat":[124],"product_tag":[],"class_list":["post-5328","product","type-product","status-publish","has-post-thumbnail","product_cat-lease-contract","first","instock","virtual","purchasable","product-type-simple"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.5 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Business Property Lease Agreement (England) UK | Template Online<\/title>\n<meta name=\"description\" content=\"Make a customisable UK commercial business lease agreement template in 5 min online. E-sign. 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