Bare Land Lease Agreements

If an occupier is to have exclusive use of land, a Lease should be granted. A Lease gives the Tenant exclusive use of the land for a specified term, subject to the Tenant paying the rent and complying with the provisions of the Lease.

This subfolder of Leases contains a selection of templates for lettings of bare land for various purposes: sporting activities, allotments, car parking, advertising. These leases do not contain rent review provisions so they should usually be granted for a term of 5 years or less. All of the Leases contain detailed provisions as to what a tenant must and must not do during the term. These provisions aim to protect the value of the Landlord’s reversionary interest in the premises.

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Frequently Asked Questions

I want to give exclusive use of my land for a few years. Which document do I use? +

A lease. It gives the tenant exclusive use for a fixed term in return for rent and compliance with its covenants. These bare land lease templates cover lettings for sporting activities, allotments, car parking and advertising, and include detailed provisions on what the tenant may and may not do to protect the value of your reversion.

Will my tenant have a legal right to renew the lease when it ends? +

Yes, unless you contract it out. A lease to a business occupier is protected by Part II of the Landlord and Tenant Act 1954, which gives the tenant a right to a new tenancy on similar terms. You can exclude that right, but only by following the correct procedure before the lease is granted. Decide this before you sign, because you cannot add it later.

How do I stop the tenant having a right to renew, and when must I do it? +

You contract out of the 1954 Act using the section 38A procedure. Before the lease is entered into you serve a prescribed warning notice on the tenant, who then signs a declaration accepting it. A simple declaration works if there are at least 14 days before the lease; if you need to move quicker the tenant signs a statutory declaration. Miss the steps and the tenant keeps the renewal right.

How long a term should I grant if the lease has no rent review? +

Keep it short, usually five years or less. These templates have no rent review clause, so a long term would lock you into the opening rent for years while costs rise. For a longer or higher-value letting you would want a lease that includes a rent review mechanism instead.

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