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
Documents to Supplement a Business Lease is part of Property. Just £38.50 + VAT provides unlimited downloads from Property for 1 year.
Frequently Asked Questions
How do I grant a commercial lease that keeps no security of tenure for the tenant?
Contract out of sections 24 to 28 of the Landlord and Tenant Act 1954. Serve the prescribed warning notice before the tenant enters the tenancy or, if earlier, becomes contractually bound. The tenant makes a simple declaration only if the warning was served at least 14 days before that earlier event; otherwise the tenant makes a statutory declaration before an independent solicitor or another person empowered to administer oaths. Complete the procedure in time or sections 24 to 28 may still apply.
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 only after weighing the commercial and legal consequences; short lets and redevelopment plans do not remove the need to check whether Part II applies. The exclusion works only if the section 38A and Schedule 2 procedure is completed before the tenant enters the tenancy or, if earlier, becomes contractually bound. The 14-day period for a simple declaration is measured to that earlier event. This sub-folder contains the relevant documents and guidance.