When you’re focused on launching or expanding your business, the fine print of a commercial lease can easily be overlooked. Yet, lease terms can have long-lasting financial and operational implications. Over the years, I’ve seen many clients—both landlords and tenants—caught out by details that could have been resolved with early advice.
Here are five of the most common pitfalls I see, and how to avoid them.
Failing to Review the Repair Obligations
Many tenants sign full repairing and insuring (FRI) leases without understanding what that means.
This can leave you responsible for repairing parts of the property you’ve never used or inherited in poor condition.
Always insist on a Schedule of Condition being attached to the lease, it could save you thousands at the end of the term.
Overlooking Service Charges
Service charge clauses can be open-ended. I’ve seen tenants charged for roof replacements or major upgrades that should have been excluded.
Ask for a cap on annual service charges and transparency in how costs are calculated.
Ignoring the Break Clause Details
A badly worded or misunderstood break clause is a ticking time bomb. Missing a notice date or failing to meet conditions—like paying rent to the correct day—can make the clause invalid.
Get your solicitor to review the break notice process well before you need to use it.
Not Understanding the 1954 Act
The Landlord and Tenant Act 1954 gives tenants certain rights to renew their lease, unless they’ve signed a statutory declaration “contracting out.”
Before signing, ensure you understand whether you’ll have security of tenure, it affects your long-term business security.
Failing to Plan for the End
Lease expiry is often an afterthought. Without early planning, tenants can face hefty dilapidations claims, and landlords risk delays in re-letting.
A short review 12–18 months before expiry helps both parties prepare and avoid disputes.
In Summary
Commercial leases are business-critical documents, not just pieces of paper. Getting proper legal advice early can protect your investment, reduce risk, and give you leverage when negotiating terms.
At Johnson & Boon, our commercial property team acts for landlords and tenants across England and Wales, helping businesses negotiate, renew, and manage leases with confidence. For more information, or to contact a member of our team simply call 0151 637 2034 or enquire online.
