Documents to Supplement a Business Lease
A Landlord and Tenant will often need to enter into other documents at the same time as entering into a Lease, to deal with matters such as Rent Deposits and Security of Tenure.
These Documents to Supplement a Business Lease include the statutory forms for, and easy-to-follow guidance on, excluding Security of Tenure. There is also a template Rent Deposit Deed, a Side Letter and a Letter requesting a Lender's Consent to the Grant of a Lease.
Other documents may be needed during the term of the Lease. A wide variety of documents can be found in the Managing the Letting and Terminating the Letting subfolders.
- Rent Deposit Deed for Commercial Property
- Side Letter Waiving a Provision of the Lease
- Deed of Guarantee and Indemnity for Business Lease (Individual Guarantor)
- Landlord’s Notice to Exclude Security of Tenure
- Deed of Guarantee and Indemnity for Business Lease (Corporate Guarantor)
- Tenant’s Simple Declaration Regarding Security of Tenure
- Tenant’s Statutory Declaration Regarding Security of Tenure
- Guidance on Excluding Security of Tenure
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Frequently Asked Questions
How do I grant a commercial lease that keeps no security of tenure for the tenant?
Contract out of the Landlord and Tenant Act 1954. Before the tenant is bound, serve the prescribed warning notice, then the tenant makes a declaration: a simple declaration if there are at least 14 days before completion, or a statutory declaration before an independent solicitor if sooner. Complete these steps first or the tenant keeps the right to renew. This sub-folder has the notice and declarations.
What is a rent deposit deed and why do I need one?
A rent deposit deed governs money the tenant lodges as security for rent and other lease obligations. It sets out when you can draw on the deposit, whether the tenant must top it up, whether it is held in a separate account and when it is returned. Without a deed your right to use the money is unclear. This sub-folder has a rent deposit deed.
The tenant wants a concession that is not in the lease. How do I document it safely?
Use a side letter. A side letter records a personal concession, for example a rent discount or a fit-out contribution, without varying the lease itself. Make it personal to the current tenant and non-assignable so it falls away on a sale of the lease. This sub-folder has a side letter template.
My property is mortgaged. Do I need my lender's permission to grant a lease?
Usually yes. Most commercial mortgages restrict the borrower's power to let without the lender's consent, so granting a lease without it can breach your mortgage and, in some cases, leave the lease vulnerable. Ask the lender in writing before you commit. This sub-folder has a letter requesting the lender's consent to the grant of a lease.
When should security of tenure be excluded rather than left in place?
Exclude it when you want certainty that you can recover the premises at the end of the term, for short lets, redevelopment plans or a fast turnover of occupiers. Leave it in for tenants you want to keep long term. The choice is commercial, but the exclusion only works if the section 38A procedure is completed before the lease is granted. This sub-folder guides you through it.