Commercial Lease Agreements
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Commercial Lease Agreement Solicitors
Entering into a commercial lease is a significant legal and financial commitment, whether you are a landlord looking to protect your investment or a tenant seeking secure, functional premises for your business. At Clifford Johnston & Co., our commercial lease solicitors have decades of experience advising clients across Stockport, Manchester, and the wider North West on all aspects of lease agreements for commercial property.
We are trusted by business owners, investors, and developers alike to provide clear, robust legal advice and to draft, review, and negotiate lease terms that safeguard their interests. With more than 35 years of experience, our team is fully accredited by the Law Society and holds the Lexcel Legal Practice Quality Mark, demonstrating our commitment to excellence in legal practice and client care.
Whether you are entering into a new lease, seeking to assign or renew an existing one, our expert team will ensure your rights are protected, your obligations are clear, and your commercial objectives are met.
Call us today for expert legal advice on commercial leases. We offer a responsive, personalised service tailored to your business needs.
How Can We Help?
At Clifford Johnston & Co., we understand that commercial lease agreements are about safeguarding your business future. Whether you’re leasing office space, a retail unit, an industrial premises or a mixed-use property, our solicitors work tirelessly to ensure the lease terms reflect your commercial priorities and legal protections.
Our team acts for both landlords and tenants across Stockport, Manchester and beyond, offering practical legal advice grounded in decades of experience. We scrutinise every clause, anticipate long-term implications, and negotiate tenaciously to avoid risks and disputes. From first instructions to completion and beyond, our approach is meticulous, commercially aware, and always client-focused.
We routinely assist with:
- Drafting and negotiating lease agreements
- Advising on Heads of Terms
- Reviewing existing leases before renewal or transfer
- Licences for alterations, assignment or subletting
- Rent review and break clause advice
Every lease arrangement is different, and so is our approach. We take time to understand your goals, the nature of your business, and the commercial realities you face so we can deliver legal support that is truly aligned with your needs.
If you need clear legal advice on a new or existing lease, speak to our commercial lease experts today. We’re here to protect your interests and help your business move forward with confidence.
What is a Commercial Lease Agreement?
A commercial lease agreement is a legally binding contract between a landlord and a tenant that grants the tenant the right to occupy business premises for an agreed period, in return for rent. These agreements are fundamental to many commercial operations, providing premises for everything from retail and hospitality, to manufacturing, office work and logistics.
Unlike residential tenancies, commercial leases are bespoke and often complicated. They set out detailed terms governing the rights, responsibilities and disof both parties including rent, repair obligations, permitted use, renewal rights, insurance, alterations, and termination clauses.
Every clause matters. The terms you sign up to can have a lasting impact on your business’s flexibility, financial stability, and legal exposure. For example, many commercial tenants mistakenly assume they can walk away from a lease early, when in fact, most agreements will run until expiry unless specific break clauses are included and exercised correctly.
Whether you are a business owner seeking a new location or a landlord letting out commercial premises, professional legal advice at the outset is essential. At Clifford Johnston & Co., we help our clients understand the implications of their lease and negotiate terms that support their strategic and financial interests.
Types of Commercial Lease Agreements
Commercial leases in England and Wales are highly flexible and can be structured in different ways depending on the nature of the premises, the parties involved, and their commercial goals. Understanding the type of lease agreement you’re entering into is crucial, as it will define your legal and financial responsibilities throughout the tenancy.
The most common form is the Full Repairing and Insuring Lease (FRI Lease), where the tenant is responsible for maintaining the property in a good state of repair and for reimbursing the landlord’s insurance premiums. This type of lease is typically favoured by landlords and widely used for offices, shops, and industrial units.
Other types include:
Lease with Service Charge Provisions
Often used in multi-occupancy buildings like shopping centres or office blocks, these leases require tenants to contribute to the costs of maintaining common areas and shared services.
Short-Term or Flexible Leases
Typically under three years in duration, these leases offer greater flexibility and are sometimes used by start-ups or tenants seeking temporary premises.
Ground Leases
Long-term leases of land, often for development purposes, where the tenant may build on or improve the site during the lease term.
Subleases and Licence Agreements
Distinct from head leases, these arrangements allow tenants to sublet part of the property, or for short-term occupancy where exclusivity is not required.
Each lease type comes with specific risks, rights, and obligations. Our Commercial Lease Solicitors provide clear, commercially-focused advice to help you understand your position and negotiate terms that work for your business.
What Is the Commercial Lease Agreement Process?
The process of agreeing a commercial lease involves a number of key legal and practical stages, each of which must be approached with care to ensure that the final agreement protects your interests and supports your business objectives.
The starting point is usually the negotiation of Heads of Terms. These are not legally binding but set out the principal terms of the lease such as the length of term, rent, break clauses, service charges, and any rights to renew. While often prepared by commercial agents, it is critical to seek legal advice before agreeing Heads of Terms to avoid inadvertently compromising your position.
Once agreed, the landlord’s solicitor will draft the lease and any related documents such as rent deposit deeds, licences to alter, or guarantees. The tenant’s solicitor will then review the documents, raise enquiries, and negotiate amendments where necessary. This phase also includes legal due diligence such as reviewing title documentation, obtaining property searches, and checking planning use classes and regulatory constraints.
Once both parties are satisfied with the terms, the final lease documents are signed and completed. The tenant may be required to pay Stamp Duty Land Tax (SDLT) and register the lease at HM Land Registry, depending on its length and value. The lease becomes legally binding upon completion, with both landlord and tenant assuming their respective legal duties from that point.
At Clifford Johnston & Co., our commercial lease solicitors manage the process from start to finish. We provide meticulous scrutiny of lease terms, ensure statutory compliance, and offer strategic input that aligns the legal documents with your commercial intentions.
Renewing or Ending a Commercial Lease Agreement
Whether you’re planning for the future of your business or considering early termination, understanding your rights and obligations at the end of a lease term is essential. At Clifford Johnston & Co., we offer expert legal guidance for both landlords and tenants experiencing this critical phase.
Most commercial tenants do not automatically vacate at the end of a lease. If your agreement is protected by the Landlord and Tenant Act 1954, you may have a statutory right to renew under the same terms (excluding rent). However, landlords can oppose renewal under limited grounds such as the intention to redevelop, or a tenant’s persistent breach of obligations. If your lease has been “contracted out” of these protections, you will have no automatic right to a new lease, so renewal must be agreed contractually or negotiated separately.
Ending a lease early is typically only possible if your agreement contains a break clause. These clauses must be carefully followed and strictly adhered to in both timing and notice requirements. Where no break clause exists, early surrender may be agreed with the landlord, though it is not guaranteed and often involves negotiation and the potential for additional costs.
Landlords may also seek to terminate a lease through forfeiture, typically in cases of serious breach, such as rent arrears or failure to repair. Before taking action, a Section 146 notice must be served, and tenants have the right to apply for relief from forfeiture.
Whatever the situation, our experienced commercial lease solicitors provide strategic advice and robust representation to ensure your interests are protected throughout.
Frequently Asked Questions About Commercial Lease Agreements
Do I need a solicitor for a commercial lease agreement?
Yes, commercial leases are legally binding contracts with long-term financial and legal implications. Whether you are a landlord or a tenant, expert legal advice is essential to ensure the terms are fair, enforceable and aligned with your commercial goals.
What financial responsibilities come with commercial lease agreements?
Commercial leases often include rent, service charges, business rates, and insurance. Tenants may also be liable for repairs under full repairing and insuring (FRI) terms. Understanding the full cost upfront is vital to avoid unexpected liabilities.
Can commercial lease agreements be ended or transferred early?
Some leases include break clauses allowing early exit, usually with notice. Many also permit assignment or subletting with landlord consent. These options offer flexibility but often come with ongoing liabilities unless formally released.
What obligations do tenants have under commercial lease agreements?
Tenants must maintain the property, follow permitted use rules, and may need landlord consent for alterations. Clauses on repairs, reinstatement, and statutory compliance should be reviewed carefully before signing.
What’s the difference between a licence and a lease?
In commercial property, a lease grants exclusive possession for a defined period, offering greater legal security. A licence, by contrast, permits occupation without exclusivity and can often be terminated more easily. Understanding the legal implications of both is crucial before signing.
What is a rent review clause in a commercial lease agreement, and how does it work?
A rent review clause allows the landlord to adjust the rent at set intervals, typically every 3–5 years. Reviews may be based on open market rates, the Retail Price Index, or a fixed increase. Understanding how and when these reviews apply is vital before signing the lease.
Are service charges negotiable in a commercial lease?
Yes, while service charges are common in multi-occupancy buildings, the extent and structure can often be negotiated before the lease is signed. It’s important to have clarity on what’s included, how charges are calculated, and whether there are caps in place.
What are my responsibilities for repairs under a commercial lease?
This depends on the lease type. Full Repairing and Insuring (FRI) leases usually place full responsibility for maintenance and repair on the tenant, even for pre-existing issues. Always inspect the premises and consider a Schedule of Condition to limit your liability.
Contact Our Commercial Lease Solicitors
Commercial lease agreements can be intricate and high-stakes, carrying long-term implications for your business. At Clifford Johnston & Co., we provide clear, strategic legal advice to both landlords and tenants, ensuring your lease protects your interests from day one.
Our commercial property team advises on every aspect of lease negotiation and management, including new leases, lease renewals, assignments, subletting, break clauses, variations, forfeiture and lease surrender. We work closely with surveyors, agents and financial professionals to ensure a seamless process, whether you’re expanding your portfolio or securing the right premises for your growing business.
We recognise that no two businesses are alike. That’s why our Commercial Lease Solicitors offer a bespoke service designed around your specific commercial objectives and the nature of your occupation. Our practical, client-focused approach ensures you stay in control at every stage of the process with clarity on your rights, obligations and options.
With over 35 years of experience in commercial and property law, we are one of the most respected legal firms in the North West. From our offices in Manchester and Stockport, we serve clients across Greater Manchester, Cheshire, and beyond.
Contact our Commercial Lease Agreement Solicitors today for expert advice and confident legal representation you can trust.
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Do you have any issues that you are worried about? Contact our professional team for a free, no-obligation informal discussion, where we can discuss your particular requirements in greater detail.