FAQs

Taking a lease means you are granted the right to occupy and use a property for business purposes for a fixed period, in return for paying rent and complying with lease terms.

In practice:
If you rent a shop unit on a 10-year lease, you can operate your business there for that period, but you must follow the lease conditions (e.g. pay rent, maintain the premises).

Important terms include:

• Length of the lease (term)
• Rent and rent review provisions
• Repair and maintenance obligations
• Break clauses (ability to end early)
• Permitted use of the premises

In practice:
A lease may require you to fully repair the property—even if it is in poor condition at the start—so it is important to understand your obligations before signing.

An FRI lease is common in the UK and means the tenant is responsible for:

• Repairing and maintaining the premises
• Contributing to insurance costs

In practice:
If the roof or structure needs repair, you (as tenant) may have to cover the cost—even if the issue existed before you took the lease.

You can only terminate early if the lease includes a break clause or if you negotiate a surrender with the landlord.

In practice:
Without a break clause, you may still be liable for rent for the full term—even if you stop trading or vacate the premises.

Under the Landlord and Tenant Act 1954, some business tenants have the right to remain in the premises after the lease ends and request a renewal.

However, this right can be excluded before the lease is entered into.

In practice:
If your lease has security of tenure, your landlord cannot simply ask you to leave at the end of the term without following a formal legal process.