Commercial Land Lease Agreement Template for England and Wales

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Commercial Land Lease Agreement

"I need a Commercial Land Lease Agreement for a 2-acre industrial plot in Manchester, with a 15-year term starting March 2025, including specific provisions for environmental compliance and future development rights."

What is a Commercial Land Lease Agreement?

The Commercial Land Lease Agreement is a fundamental document in commercial property transactions within England and Wales. It is used when a landowner wishes to grant a business tenant the right to occupy and use commercial land for a specified period in exchange for rent. The agreement must comply with relevant legislation, particularly the Landlord and Tenant Act 1954, and typically includes detailed provisions about permitted use, development rights, maintenance obligations, and rent reviews. This document is essential for protecting both parties' interests and ensuring clarity in their commercial relationship.

What sections should be included in a Commercial Land Lease Agreement?

1. Parties: Details of the landlord and tenant, including registered addresses and company registration numbers where applicable

2. Background: Context of the lease and brief property description

3. Definitions: Key terms used throughout the agreement including Property, Term, Permitted Use, and other defined terms

4. Demise: The formal grant of the lease, term length, and commencement date

5. Rent and Payment Terms: Rent amount, payment dates, method of payment, and review provisions

6. Tenant's Covenants: Tenant's obligations including repairs, alterations, use restrictions, and compliance with laws

7. Landlord's Covenants: Landlord's obligations including quiet enjoyment and insurance obligations

8. Insurance: Insurance requirements, obligations to insure, and reinstatement provisions

9. Termination Provisions: Break clauses, forfeiture provisions, and surrender terms

What sections are optional to include in a Commercial Land Lease Agreement?

1. Service Charge: Provisions for shared services and common areas maintenance, required for multi-let properties

2. Security Deposit: Terms for payment, holding and returning of security deposit

3. Guarantor Provisions: Terms binding guarantor including obligations and duration of guarantee

4. VAT Provisions: Specific provisions relating to VAT treatment and election

5. Environmental Provisions: Specific environmental obligations and compliance requirements

What schedules should be included in a Commercial Land Lease Agreement?

1. Schedule 1 - Property Plan: Detailed plan showing the demised premises, boundaries, and access routes

2. Schedule 2 - State of Repair Schedule: Schedule recording condition of the property at lease commencement

3. Schedule 3 - Rights Granted: Detailed list of rights granted with the property including access and services

4. Schedule 4 - Rights Reserved: Rights retained by landlord including access for inspection and repair

5. Schedule 5 - Rent Review Provisions: Detailed rent review methodology, timing, and procedures

6. Schedule 6 - Service Charge Schedule: Breakdown of service charge items, calculations, and exclusions

7. Schedule 7 - Permitted Alterations: List of alterations that can be carried out without landlord's consent

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

alex.den.21@genieai.co

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Let's create your Commercial Land Lease Agreement

What is a Commercial Land Lease Agreement?

What sections should be included in a Commercial Land Lease Agreement?

What sections are optional to include in a Commercial Land Lease Agreement?

What schedules should be included in a Commercial Land Lease Agreement?

Authors

Alex Denne

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