What is a rent review clause?

A rent review clause explains when and how the rent may change, often by open market review, fixed increase or index-linked adjustment.

What does a repair clause cover in a commercial lease?

A repair clause sets out who is responsible for maintaining and repairing the property, fixtures, structure, services and any shared areas.

What is a permitted use clause?

A permitted use clause restricts how the tenant may use the premises, helping the landlord control business activity and planning compliance.

What is an assignment clause in a commercial lease?

An assignment clause explains whether the tenant can transfer the lease to another party and what landlord consent is required.

What is a subletting clause?

A subletting clause states whether the tenant can let all or part of the premises to another occupier, usually subject to conditions and consent.

What does a service charge clause mean?

A service charge clause sets out the tenant’s contribution to costs for maintaining, repairing and managing shared parts of a building or estate.

What is included in an insurance clause?

An insurance clause usually states who insures the property, what risks are covered and how insurance costs are recovered from the tenant.

Can a tenant alter commercial premises?

An alterations clause controls whether the tenant can make changes to the premises and whether landlord consent is needed.

What is a rent deposit clause?

A deposit clause records the amount held, when it may be used, and when it must be returned after the lease ends.

What is a forfeiture clause?

A forfeiture clause gives the landlord a right to end the lease if the tenant seriously breaches its obligations, such as non-payment of rent.

Can I use individual clauses to create a commercial lease?

It can provide useful wording and guidance, but a full commercial lease should be tailored to the property, parties and transaction.

How does this clause library relate to the commercial lease agreement generator?

The clause library supports document creation by explaining key provisions. You can use the main commercial lease agreement page to generate a complete lease.

Is this commercial lease clause library legal advice?

The library provides general information and drafting support. It is not a substitute for legal advice on a specific lease or dispute.

EN-GB>Commercial>Commercial Lease Agreement>Commercial Lease Clause Library | United Kingdom

Commercial Lease Clause Library For United Kingdom

Created: 8 Jun 2026

Explore practical commercial lease clauses for United Kingdom tenancy agreements. This dataset helps landlords, tenants and advisers compare clause wording, understand key provisions and draft with greater confidence. For broader guidance, see our AI Generated British Commercial Tenancy Agreement resource.

Clause name	Clause purpose	Clause importance	Relevant property types	Drafting considerations	Related clauses
United Kingdom wide
Rent payment	Sets the principal rent, payment dates, method and consequences of late payment.	Core clause	All commercial premises.	Define rent, payment frequency, cleared funds, apportionment and whether VAT is payable.	VAT, interest on late payment, rent review, forfeiture.
Rent review	Provides a mechanism to adjust rent during the lease term.	Core clause	Offices, retail units, industrial units, long leases.	Specify review dates, basis, assumptions, disregards, upwards-only wording and dispute expert.	Rent payment, indexation, turnover rent, dispute resolution.
Index-linked rent review	Links rent increases to an inflation index such as CPI or RPI.	Optional clause	Retail, logistics, offices, investment leases.	State index, formula, base month, caps, collars and replacement index process.	Rent review, rent payment, caps and collars.
Turnover rent	Calculates rent partly by reference to the tenant's sales or revenue.	Specialist clause	Shopping centres, retail parks, restaurants, leisure premises.	Define turnover, exclusions, audit rights, reporting frequency and online sales treatment.	Rent review, keep open, audit rights, permitted use.
Rent deposit	Secures tenant obligations using money held by or for the landlord.	Optional clause	Start-ups, SMEs, high-risk tenants, short leases.	Cover amount, drawdown triggers, top-up, interest, release and insolvency protection.	Guarantee, default, interest, forfeiture.
Service charge	Allows recovery of shared building or estate costs from tenants.	Core clause	Multi-let offices, shopping centres, estates, mixed-use buildings.	Define services, caps, exclusions, management fees, reserve funds and certification.	Common parts, insurance, landlord services, dispute resolution.
Insurance rent	Requires the tenant to reimburse insurance premiums paid by the landlord.	Core clause	FRI leases, multi-let buildings, industrial estates.	Specify insured risks, excess, exclusions, terrorism cover and premium allocation.	Insurance, damage reinstatement, rent suspension, service charge.
VAT	Allocates responsibility for VAT on rent and other lease payments.	Core clause	All commercial premises, especially opted properties.	Confirm whether sums are exclusive of VAT and require valid VAT invoices.	Rent payment, service charge, insurance rent, option to tax.
Term	Defines the lease start date, expiry date and duration.	Core clause	All commercial premises.	Align commencement, rent start, access, registration and any agreement for lease.	Break clause, renewal, security of tenure, registration.
Break clause	Gives one or both parties a right to end the lease early.	Optional clause	Offices, retail units, flexible business premises.	State notice period, break date, conditions, vacant possession and payment requirements.	Notices, rent payment, yielding up, reinstatement.
England and Wales
Contracting out of security of tenure	Excludes statutory renewal rights under the Landlord and Tenant Act 1954.	Specialist clause	Most business tenancies in England and Wales.	Ensure warning notice, tenant declaration and lease endorsement are completed before grant.	Term, renewal, notices, break clause.
Security of tenure	Confirms whether statutory business tenancy renewal rights apply.	Core clause	Shops, offices, warehouses and other business premises.	State 1954 Act status and avoid ambiguity about continuation after expiry.	Contracting out, renewal, term, notices.
United Kingdom wide
Repair	Allocates responsibility for keeping premises in repair.	Core clause	All commercial premises, especially FRI leases.	Define standard of repair, inherent defects, fair wear, schedule of condition and structure.	Decoration, alterations, yielding up, schedule of condition.
Full repairing and insuring obligations	Places repair and insurance cost risk substantially on the tenant.	Core clause	Standalone buildings, industrial units, investment properties.	Clarify direct repair duties versus contribution through service charge or insurance rent.	Repair, insurance, service charge, reinstatement.
Schedule of condition	Limits repair liability by recording the premises' condition at lease start.	Optional clause	Older premises, short leases, small business units.	Attach clear dated photos and wording limiting obligation to no better condition.	Repair, yielding up, decoration, reinstatement.
Decoration	Requires internal or external redecoration at specified intervals or lease end.	Optional clause	Offices, shops, restaurants, managed buildings.	Specify intervals, colour approval, quality standard and final redecoration timing.	Repair, alterations, yielding up, landlord approval.
Alterations	Controls tenant works to the premises during the lease.	Core clause	Offices, retail, hospitality, industrial units.	Distinguish structural, non-structural and signage works require licences and consents.	Planning, reinstatement, repair, landlord consent.
Reinstatement	Requires removal of alterations and restoration at lease end if required.	Core clause	Fitted offices, retail units, restaurants, laboratories.	Set notice timing, landlord election, base-build standard and treatment of tenant fixtures.	Alterations, yielding up, repair, fixtures.
Permitted use	Defines the business activity allowed at the premises.	Core clause	Retail, offices, industrial, leisure, healthcare premises.	Align with planning use, exclusivity, insurance, nuisance and estate management rules.	Planning, prohibited use, keep open, licensing.
Planning compliance	Requires compliance with planning law and planning permissions.	Core clause	All premises, especially change-of-use and fit-out projects.	Allocate responsibility for permissions, conditions, breaches and planning agreements.	Permitted use, alterations, statutory compliance, signage.
Statutory compliance	Requires compliance with laws affecting occupation and use of the premises.	Core clause	All commercial premises.	Define tenant versus landlord responsibility for works required by law.	Health and safety, fire safety, planning, environmental compliance.
Assignment	Controls transfer of the lease to a new tenant.	Core clause	Offices, retail, industrial and investment leases.	Set consent conditions, financial tests, authorised guarantee agreement and group transfers.	Alienation, underletting, sharing occupation, guarantee.
Underletting	Controls whether the tenant may sublet all or part of the premises.	Core clause	Larger offices, industrial units, retail premises.	Address whole or part, underlease terms, rent level and excluded security of tenure.	Assignment, sharing occupation, permitted use, consent.
Sharing occupation	Permits or restricts occupation by group companies or business partners.	Optional clause	Corporate offices, serviced offices, group company premises.	Avoid creating tenancies require no exclusive possession and end sharing on request.	Alienation, underletting, permitted use, confidentiality.
England and Wales
Landlord consent	Sets how consent is requested and whether it may be withheld.	Core clause	Leases with assignment, underletting or alteration controls.	State information requirements, reasonable conditions, costs and deemed refusal rules.	Assignment, underletting, alterations, notices.
United Kingdom wide
Insurance	Specifies who insures the property and what risks are covered.	Core clause	All commercial premises.	List insured risks, uninsured risks, excesses, tenant contents and insurer requirements.	Insurance rent, damage reinstatement, rent suspension, tenant covenants.
Damage reinstatement	Deals with rebuilding after insured or uninsured damage.	Core clause	Buildings leases, multi-let premises, high-value assets.	Set reinstatement period, termination rights, uninsured damage and insurance money use.	Insurance, rent suspension, termination, force majeure.
Rent suspension	Suspends rent where damage prevents occupation or use.	Core clause	All insured commercial premises.	Define trigger, extent of suspension, insured risks and maximum suspension period.	Insurance, damage reinstatement, rent payment, termination.
England and Wales
Forfeiture	Allows the landlord to re-enter and end the lease after specified tenant defaults.	Core clause	Most commercial leases in England and Wales.	Cover rent arrears, covenant breach, insolvency and statutory notice requirements.	Default, interest, insolvency, notices, rent deposit.
Scotland
Irritancy	Provides the Scots law mechanism for terminating a lease after tenant breach.	Core clause	Commercial premises in Scotland.	Use Scots law terminology and comply with statutory pre-irritancy notice rules.	Default, rent arrears, notices, insolvency.
United Kingdom wide
Interest on late payment	Compensates the landlord for overdue rent or other lease sums.	Core clause	All commercial premises.	Set rate, compounding, default period and whether statutory interest also applies.	Rent payment, default, forfeiture, costs.
Guarantee	Makes a third party liable for tenant obligations if the tenant defaults.	Optional clause	New companies, group structures, high-value leases.	Define liability, indemnity, release events, guarantor due diligence and execution formalities.	Rent deposit, assignment, default, authorised guarantee agreement.
England and Wales
Authorised guarantee agreement	Requires an outgoing tenant to guarantee the immediate assignee's obligations.	Specialist clause	Commercial leases where assignment may be permitted.	Ensure AGA is only required where lawful and linked to assignment consent conditions.	Assignment, guarantee, landlord consent, release of tenant.
United Kingdom wide
Yielding up	Sets the condition and handover requirements when the lease ends.	Core clause	All commercial premises.	Cover keys, vacant possession, removal of items, repair, decoration and reinstatement.	Repair, reinstatement, break clause, schedule of condition.
England and Wales
Dilapidations	Addresses claims for disrepair or failure to comply with end-of-term obligations.	Optional clause	FRI leases, offices, industrial and retail premises.	Align with repair standard, schedule of condition and terminal dilapidations procedure.	Repair, yielding up, reinstatement, decoration.
United Kingdom wide
Landlord access	Allows landlord entry for inspection, repair, services or reletting.	Core clause	All commercial premises, especially multi-let buildings.	State notice, emergency entry, disruption limits and security requirements.	Repair, services, quiet enjoyment, landlord works.
Quiet enjoyment	Protects the tenant's lawful possession from landlord interference.	Core clause	All commercial premises.	Balance tenant protection with landlord rights of access, services and redevelopment.	Landlord access, landlord works, derogation from grant, services.
Landlord works	Reserves rights for the landlord to carry out works to the building or estate.	Optional clause	Multi-let buildings, shopping centres, redevelopment sites.	Limit disruption, preserve access, address rent suspension and service charge recovery.	Quiet enjoyment, access, service charge, redevelopment break.
Signage	Controls signs, branding and advertisements at the premises.	Optional clause	Retail, restaurants, offices, leisure premises.	Require landlord approval, planning advertisement consent and removal at lease end.	Alterations, planning, permitted use, yielding up.
Keep open	Requires the tenant to trade during specified hours.	Specialist clause	Shopping centres, retail parks, restaurants, leisure premises.	Define trading hours, exceptions, enforcement limits and turnover rent interaction.	Turnover rent, permitted use, service charge, opening hours.
Exclusive use	Restricts the landlord from allowing competing uses in the same development.	Specialist clause	Shopping centres, retail parks, food courts, leisure schemes.	Define competing activity narrowly and include carve-outs for existing tenants.	Permitted use, prohibited use, keep open, landlord estate rules.
Nuisance and annoyance	Prevents activities causing nuisance, damage, obstruction or disturbance.	Core clause	Multi-let buildings, restaurants, industrial estates, mixed-use schemes.	Address noise, odour, vibration, waste, obstruction and neighbour complaints.	Permitted use, environmental compliance, estate regulations, waste.
Waste management	Controls storage, disposal and recycling of tenant waste.	Optional clause	Restaurants, retail, industrial units, healthcare premises.	Specify collection areas, hazardous waste, pest control and compliance with duty of care.	Nuisance, environmental compliance, service charge, permitted use.
Environmental compliance	Allocates responsibility for contamination, pollution and environmental permits.	Specialist clause	Industrial sites, petrol stations, workshops, laboratories, warehouses.	Deal with baseline condition, remediation, hazardous substances and indemnities.	Permitted use, waste, statutory compliance, indemnity.
Asbestos management	Allocates duties for managing asbestos risks in non-domestic premises.	Specialist clause	Older commercial buildings, industrial units, schools, healthcare premises.	Identify dutyholder, surveys, asbestos register, works controls and information sharing.	Repair, alterations, statutory compliance, health and safety.
England and Wales
Fire safety	Allocates duties for fire precautions, risk assessments and emergency arrangements.	Core clause	Offices, shops, restaurants, warehouses, multi-let buildings.	Define responsible person, common parts duties, alterations and fire equipment maintenance.	Statutory compliance, alterations, common parts, health and safety.
United Kingdom wide
Health and safety	Requires compliance with workplace health and safety obligations.	Core clause	All workplaces and commercial premises.	Allocate obligations for risk assessments, contractors, equipment and common areas.	Statutory compliance, fire safety, asbestos, landlord services.
England and Wales
Energy performance	Addresses EPC obligations and minimum energy efficiency requirements.	Specialist clause	Let commercial buildings requiring EPCs.	Control tenant works affecting EPC rating and allocate MEES improvement costs.	Green lease, alterations, statutory compliance, service charge.
United Kingdom wide
Green lease obligations	Promotes energy efficiency, sustainability data sharing and lower environmental impact.	Specialist clause	Offices, retail centres, institutional investment property.	Cover metering, data sharing, waste, fit-out standards and cooperation duties.	Energy performance, service charge, alterations, utilities.
Utilities and meters	Allocates responsibility for utility supply, metering and payment.	Core clause	All commercial premises, especially multi-let buildings.	Define direct accounts, recharging, sub-meters, interruptions and capacity limits.	Service charge, green lease, landlord services, data centres.
Common parts	Regulates rights and obligations over shared areas of a building or estate.	Core clause	Multi-let offices, shopping centres, industrial estates.	Reserve landlord control and specify access routes, rules and service charge links.	Service charge, estate regulations, access, landlord services.
Estate regulations	Allows rules for managing a building, centre or estate.	Optional clause	Business parks, shopping centres, multi-let offices, estates.	Require regulations to be reasonable, notified and consistent with lease rights.	Common parts, service charge, nuisance, parking.
Parking rights	Grants or controls use of parking spaces or loading bays.	Optional clause	Offices, retail parks, industrial estates, leisure premises.	Specify allocated spaces, permits, relocation rights, EV charging and enforcement.	Common parts, estate regulations, service charge, access.
Telecommunications equipment	Controls installation and operation of telecoms apparatus and connectivity equipment.	Specialist clause	Offices, rooftops, data centres, retail units, industrial sites.	Address wayleaves, Electronic Communications Code rights, removal and landlord approval.	Alterations, utilities, access, reinstatement.
Data centre operations	Addresses high-power, cooling, uptime and equipment risks for data centre use.	Specialist clause	Data centres, server rooms, telecoms hubs.	Define power capacity, resilience, cooling, access, security and service credits.	Utilities, telecommunications, insurance, access, security.
Confidentiality	Protects confidential lease terms, business information or building security information.	Optional clause	Corporate headquarters, laboratories, data centres, negotiated rent deals.	Define permitted disclosures to lenders, buyers, advisers and regulators.	Data protection, sharing occupation, assignment, notices.
Data protection	Allocates obligations for personal data handled in lease administration or building services.	Optional clause	Managed buildings, CCTV-enabled premises, access-controlled offices.	Address CCTV, access systems, tenant contacts, notices and controller roles.	Confidentiality, security, building services, notices.
Security arrangements	Regulates keys, access cards, alarms, CCTV and building security procedures.	Optional clause	Offices, warehouses, data centres, retail centres.	Allocate maintenance, codes, lost passes, out-of-hours access and incident reporting.	Access, data protection, common parts, insurance.
Landlord costs	Requires tenant payment of specified landlord legal or professional costs.	Core clause	All commercial premises.	Limit to reasonable costs for consents, enforcement, notices and tenant applications.	Landlord consent, default, notices, alterations.
Notices	Sets valid methods and addresses for formal lease notices.	Core clause	All commercial premises.	Specify service methods, deemed receipt, email use and statutory notice compatibility.	Break clause, forfeiture, rent review, security of tenure.
Governing law and jurisdiction	Identifies the legal system and courts governing lease disputes.	Core clause	Cross-border parties and all commercial leases.	Use the law of the property jurisdiction avoid mixing English and Scots terminology.	Dispute resolution, notices, interpretation.
Dispute resolution	Sets procedures for resolving rent review, service charge or lease disputes.	Optional clause	Leases with rent review, service charge or technical obligations.	Choose expert determination, arbitration, mediation or courts and define appointment process.	Rent review, service charge, governing law, notices.
Superior landlord consent	Requires compliance with superior lease obligations and consent requirements.	Specialist clause	Underleases, headlease structures, leasehold investment property.	Check headlease covenants, consent timing, superior rent and forfeiture risk.	Underletting, landlord consent, title matters, forfeiture.
Lender consent	Addresses consent or non-disturbance issues where the property is charged to a lender.	Specialist clause	Mortgaged commercial properties and investment portfolios.	Confirm lender consent, priority, attornment and tenant protection on enforcement.	Title matters, landlord covenants, notices, superior interests.
England and Wales
Registration	Allocates responsibility for registering leasehold interests where required.	Specialist clause	Leases over seven years and registrable lease interests.	Set tenant duty to register, supply title number and protect landlord title.	Term, title matters, SDLT/LTT, notices.
United Kingdom wide
Lease transaction tax obligations	Allocates responsibility for SDLT, LTT or LBTT compliance and costs.	Specialist clause	Commercial leases with premium, rent or reportable transaction value.	Identify applicable tax: SDLT in England and NI, LTT in Wales, LBTT in Scotland.	Rent, premium, registration, VAT.
Tenant indemnity	Requires the tenant to reimburse losses caused by breach, use or occupation.	Core clause	All commercial premises.	Define covered losses, exclusions, mitigation, third-party claims and insurance overlap.	Insurance, environmental compliance, statutory compliance, default.
Force majeure	Excuses or adjusts performance after specified events outside party control.	Optional clause	Operationally complex premises and development-linked leases.	State events, notice, mitigation, excluded payment obligations and termination rights.	Rent suspension, damage reinstatement, landlord works, default.
Pandemic and closure risk	Allocates risks of mandatory closure, restricted trading or public health controls.	Specialist clause	Retail, hospitality, leisure, event venues, serviced offices.	Address rent concessions, service charge, insurance, keep-open and business interruption.	Force majeure, rent suspension, keep open, insurance.
Redevelopment break	Allows landlord termination to redevelop, refurbish or reconfigure the property.	Specialist clause	Development sites, shopping centres, ageing offices, mixed-use schemes.	Define trigger, notice, compensation, vacant possession and planning contingencies.	Break clause, landlord works, security of tenure, notices.
Option to renew	Gives tenant a contractual right to take a further lease.	Optional clause	Retail, offices, healthcare premises, strategic locations.	Set exercise window, conditions, new term, rent basis and excluded rights.	Term, security of tenure, rent review, notices.

What Clauses Matter Most In A UK Commercial Lease?

Rent, term, repair, insurance, use, assignment, underletting, default and forfeiture are core clauses because they define the tenant's payment obligations, the premises, operational rights, risk allocation and remedies if the lease is breached.

How Do UK Statutory Rules Affect Lease Drafting?

England and Wales: security of tenure under the Landlord and Tenant Act 1954 should be addressed expressly, especially whether the lease is inside or contracted out of the Act.
England and Wales: forfeiture for non-payment of rent and other breaches must be drafted with statutory controls in mind, including section 146 notice requirements for many breaches.
United Kingdom wide: VAT, energy performance and health and safety provisions can materially affect the cost and legality of occupation.
Scotland: leases use Scots property law terminology and remedies, so English-style clauses should not be copied without jurisdiction-specific adaptation.

Which Clauses Are Most Negotiated By Commercial Tenants?

The most heavily negotiated clauses are usually rent review, break rights, repair, service charge, alienation, permitted use, reinstatement and guarantees. Small wording differences can change whether a break is usable, whether repair is full repairing and insuring, or whether the tenant carries historic defects and major works costs.

When Are Specialist Lease Clauses Needed?

Specialist drafting is commonly needed for turnover rent, green lease obligations, telecoms equipment, data centres, restaurants, licensed premises, industrial estates, mixed-use buildings and multi-let offices. These clauses should be aligned with planning, licensing, insurance, utilities, service charge and operational requirements.

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FAQs

What is a commercial lease clause library?

A commercial lease clause library is a structured collection of common provisions used in UK business tenancy agreements, such as rent, repair, insurance, break clauses and assignment.

How can this clause library help with a UK commercial lease?

Is this clause library for UK commercial property?

What clauses are usually included in a commercial lease agreement?

What is a break clause in a commercial lease?

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