Commercial Leases

Whether it is reviewing an existing lease for your property, advising on a lease for a property you are hoping to secure, or considering a renewal we can help. Here are some other ways in which we can help:

• Break Clauses
• Rent reviews
• Assignment and underletting
• Property management
• Service charge and insurance
• Dilapidations and repair

If need some confidential advice, contact one of our team today by calling 0151 637 2034 or completing our online enquiry form

We can help advise you, enforce or defend any actions which are in breach of your lease in the most cost-effective way possible.

• Dilapidations and repair
• Tenant default and insolvency

As a landlord, your lease terms form the foundation of your property investment. We help you structure leases that maximise returns, preserve asset value, and prevent costly disputes.

Our expert team ensures your documents are watertight, your rights are protected, and your tenants understand their obligations.

Landlord services include:

• Drafting and negotiating new leases
• Advising on lease renewals and statutory notices under the Landlord & Tenant Act 1954
• Managing assignments, subletting or Underletting
• Advising in relation to alterations with clear consent conditions and handing the licence
• Drafting deeds of surrender
• Drafting break-clauses or advising in situations when one is triggered
• Pursuing or defending dilapidation claims efficiently
• Advising on new-generation leases for EV charging point installations and green-energy infrastructure.
• Dealing with disputes

Dealing with evictions

For tenants, a commercial lease can be one of the biggest business commitments you willmake.

Johnson & Boon willtake the time to understand your business so that we can critically asses and negotiate the lease you are entering into so it fits your businesses commercial goals  and you personally understand your obligations to  minimise risk.

Tenant services include:

• Reviewing draft leases and identifying hidden liabilities or unfair clauses.
• Negotiating fair terms for rent, break clauses, repair, and service charges.
• Securing renewal rights or negotiating new premises.
• Handling assignments, subleases, underleases and surrenders.
• Advising in relation to triggering a break clauses

Defending against dilapidation claims and managing exit costs.

Entering into a new lease is a major step for both landlords and tenants. Our goal is to ensure your lease reflects your commercial objectives and complies with the law while remaining flexible enough to support future changes.

We can assist with:

• Drafting and negotiating heads of terms and full lease documents.
• Reviewing key clauses—rent, rent review mechanisms, repair obligations, permitted use, alterations, insurance, and alienation.
• Advising on security of tenure under the Landlord & Tenant Act 1954.
• Ensuring compliance with planning permissions, EPC ratings, and environmental rules.
• Conducting due diligence on title, searches and CPSEs
• Advising on sector-specific terms for retail, office, hospitality, industrial, or logistics leases.

We tailor each lease to your business model or investment strategy, preventing disputes before they arise.

When your commercial lease approaches expiry, renewal negotiations are a critical moment. Our team advises both landlords and tenants on renewal rights, notice requirements, and rent levels under the Landlord & Tenant Act 1954.

We provide:

• Advice on whether the tenancy is “inside” or “outside” the 1954 Act and advising in relation to that position if it is changing from the earlier lease.
• Drafting and serving Section 25 or Section 26 notices.
• Negotiating renewal terms and rent reviews.
• Advising on modernising lease terms and updating obligations.
• Preparing deeds of renewal and ensuring seamless transitions.

Commercial realities often change. You may wish to transfer your lease or sublet part of your premises. We guide landlords and tenants through the process to ensure compliance and protect liability.

We assist with:

• Drafting and negotiating assignment and underletting agreements.
• Preparing landlord’s consent to assignment
• Dealing with guarantors or authorised guarantee agreements (AGAs).
• Advising tenants on how to limit continuing liability after assignment.
• Advising landlords on assessing assignees’ financial standing and structuring consent conditions.
• Reviewing sublease terms for compliance with headlease obligations.
• We help ensure that every transfer or sublease is legally valid and commercially secure.
• We deal with disputes which arise when an assignment is not agreed

Sometimes, a lease no longer fits your needs. Whether through mutual surrender or the exercise of a break clause, we can help you end the lease correctly and cost-effectively.

We handle:

• Negotiating and drafting deeds of surrender.
• Advising on conditions attached to break clauses (timing, rent payment, vacant possession).
• Resolving disputes over defective notices or non-compliance.

Managing exit liabilities, including dilapidations and service charge reconciliations.

An Agreement for Lease (also known as a pre-lease agreement) is a legally binding contract entered into before the actual lease is granted. It sets out the conditions that must be satisfied before the lease is completed, such as construction works, planning permissions, fit-out obligations, or legal consents.

When it is used:

• New developments or refurbishments – where the landlord must complete building works before the tenant can occupy.
• Pre-lets – where the tenant commits in advance to take a unit once it’s constructed or fitted out.
• Conditional leases – dependent on planning consent, landlord approvals, change of use, or third-party consents (for example, mortgagee consent).
• Landlord or tenant works – where the agreement specifies who will undertake works, at whose cost, and to what standard.
• Corporate or group transactions – where lease completion is linked to another deal or sale.

We handle:

• Draft and negotiate Agreements for Lease tailored to your project or transaction.
• Advise on conditional clauses, including planning permission, fit-out works, and third-party consents.
• Review specifications and plans to ensure works obligations are clear, achievable, and enforceable.
• Advise on rent-free periods, incentives, and practical completion criteria.
• Coordinate with surveyors, architects, and lenders to ensure the legal framework matches the technical reality.
• Manage completion and lease grant once conditions are satisfied, ensuring seamless transition into occupation.
• Act on disputes or delays, including enforcement or termination rights under the agreement.

Our focus is always on commercial practicality.  We identify risks early, protect your investment, and ensure your project proceeds smoothly and on time.

Dilapidations, repair and reinstatement claims at lease endcan be expensive and contentious. We act for both landlords and tenants to resolve these disputes efficiently.

Our service covers:

• Reviewing leases and schedules of condition to determine liability.
• Instructing Surveyors for suitable reports
• Advising in relation to schedules of dilapidation.
• Negotiating settlements and avoiding unnecessary litigation.
• Advising on Section 18 defences and betterment arguments.

Dealing with Court proceedings if the matter becomes litigated

As sustainability and green transport evolves, EV charging points are becoming essential for commercial premises. We are at the forefront of this emerging area of lease law.

We advise on:

• Drafting new leases or licences specifically for EV charging installations.
• Negotiating on the specific issues and terms needed for this specialist area

Our expertise helps property owners and occupiers future-proof their sites while remaining compliant and profitable.

At Johnson & Boon Solicitors, we understand the fast-paced world of commercial property.

As a commercial agent, your clients rely on you to progress deals quickly, keep transactions on track, and resolve issues before they derail a letting.

That’s where our commercial property team steps in.

We act as an extension of your service, providing clear, responsive, and commercially-driven legal support to help you and your clients close deals smoothly and protect everyone’s position along the way.

How We Help Commercial Agents and Their Clients

We regularly partner with agents nationally, offering quick, pragmatic advice for both landlords and tenants.

Why Agents Choose Johnson & Boon

1. Fast Turnaround and Clear Communication

We know that timing is everything. Our solicitors respond quickly to instructions, keep all parties informed, and use digital signing and online communication to avoid unnecessary delays.

2. Practical, Commercial Solutions

We focus on outcomes, not red tape. Our advice is always framed in plain English and aligned with the client’s business objectives.

3. Nationwide Coverage – Distance Is No Barrier

Though we’re based in the North West, we act for clients across England & Wales, meaning you can recommend us with confidence wherever your deals are located.

4. Fixed-Fee Transparency

We provide clear quotes up front, no surprises, helping you maintain trust with your clients.

5. Partnership Approach

We value long-term relationships. Many agents treat us as their in-house legal team, confident that their clients will be looked after professionally and promptly.

Training and Updates

We offer free training to commercial agents who we work with to help them stay up-to-date on changes in the law, common trends and to improve their systems.

1. What is the difference between a commercial lease and a residential lease?

A commercial lease governs business premises and offers fewer statutory protections than residential leases. It allows greater freedom of contract but requires careful negotiation to protect both parties’ interests.

2. How long does a commercial lease usually last?

Typical terms range from 3 to 25 years depending on the property type and sector. Flexibility can be achieved through break clauses or shorter fixed terms with renewal rights.

3. Can I assign or sublet my commercial lease?

Usually yes, but only with the landlord’s written consent. The lease terms set out whether consent can be withheld and on what conditions.

4. What happens when my lease ends?

If you have security of tenure under the 1954 Act, you may have the right to renew. If not, you must vacate at expiry unless a new lease is agreed.

5. What is a break clause and how does it work?

A break clause allows either party to end the lease early by serving written notice, often with strict timing and compliance requirements. We help ensure notices are validly served.

6. What are dilapidations?

These are claims relating to the state of repair of the property at lease end. Tenants may need to carry out repairs or pay compensation; landlords must justify their claim with evidence.

7. What are common pitfalls in commercial leases?

Hidden repair obligations, uncapped service charges, invalid break notices, and misunderstanding security of tenure are frequent problems—each of which we can help prevent.

8. Do you handle leases for EV charging points?

Yes. We are one of the few regional firms experienced in this niche area, advising both landlords and tenants on EV infrastructure and energy-related leases.

9. What costs are involved besides rent?

In addition to rent, tenants often pay service charges, insurance rent, business rates, utilities, and sometimes repair or maintenance contributions. We review leases carefully to ensure you understand all potential costs before signing.

10. What is the difference between “FRI” and “IRI” leases?

An FRI (Full Repairing and Insuring) lease makes the tenant responsible for all repairs and insurance. An IRI (Internal Repairing and Insuring) lease limits tenant responsibility to the interior. The distinction can have a major financial impact—so we help you clarify and negotiate these terms.

11. What is a rent review and how does it work?

Rent reviews allow the landlord to adjust the rent during the lease term, usually every 3–5 years. Reviews can be upwards only, market-based, or index-linked. We check the review clause to ensure it’s fair and transparent.

12. Can I end my lease early?

Yes, if the lease includes a break clause or if the landlord agrees to a surrender. However, strict notice periods and conditions usually apply. We’ll help ensure you exercise these rights correctly and avoid continuing liability.

13. What is a break clause and what are the common traps?

A break clause lets a tenant (or sometimes the landlord) terminate the lease before the end of the term. The biggest pitfalls include, Missing the exact notice date, Failing to pay rent in full and losing the ability to break, not giving vacant possession and the break being defective.

We ensure your notice is valid and your rights are preserved.

15. What happens if I want to sell my business or transfer the lease?

You’ll usually need the landlord’s written consent for any assignment or subletting. We assist with the legal process, review consent conditions, and make sure your future liability is limited under an Authorised Guarantee Agreement (AGA).

16. Do I automatically have the right to renew my lease?

Only if your lease has security of tenure under the Landlord & Tenant Act 1954. Some leases specifically “contract out” of this protection. We can confirm your rights and help you serve or respond to renewal notices.

17. Can a landlord evict a commercial tenant without going to court?

In limited circumstances, yes, by exercising a right of forfeiture. If the lease contains a forfeiture clause and the tenant breaches its terms (e.g. non-payment of rent), the landlord can peaceably re-enter the premises.

However, this carries significant legal risk. If done incorrectly, the landlord may face damages claims for unlawful eviction. Most landlords now use the court possession route for safety and evidential protection.

18. What is forfeiture of a commercial lease?

Forfeiture is the landlord’s legal right to terminate a lease early due to a tenant’s breach. This can be done:

• By peaceable re-entry (physically taking possession, if safe and lawful).
• Through court proceedings (seeking an order for possession).

The method chosen depends on the circumstances, risk profile, and whether the tenant is still in occupation.

19. What is the process for commercial possession through the court?

If court proceedings are required, the usual steps are:

• Serve a Section 146 Notice (for non-rent breaches), setting out the breach and allowing time to remedy.
• Issue a possession claim in the County Court (or High Court for complex cases).
• Attend a hearing (or series of hearings depending upon complecity), where the judge decides if forfeiture is valid and whether possession should be granted.
• Enforce the order, usually through County Court bailiffs or High Court Enforcement Officers.

Throughout, landlords must follow correct notice, timing, and evidential requirements. we handle all procedural aspects to ensure compliance and efficiency.

20. Can I evict a tenant who has gone into administration or liquidation?

Special rules apply. In most cases, you must obtain the administrator’s or court’s consent before taking possession. Landlords should act carefully, we can help you secure permission or negotiate terms with insolvency practitioners.

21. What are the risks of getting the eviction process wrong?

• Unlawful eviction of a commercial tenant can result in:
• Claims for damages or loss of business.
• Reinstatement of the lease by court order.
• Reputational harm and wasted costs.

Our team ensures every step is compliant with the lease terms and statutory requirements to minimise exposure.

22. Can a tenant defend or delay an eviction?

Yes, tenants may claim the landlord waived the right to forfeit, dispute the breach, or apply for relief from forfeiture. A well-prepared landlord case with strong documentation and early legal advice significantly reduces the chance of delay or loss.

23. What is a Schedule of Condition?

A Schedule of Condition is a detailed written and photographic record of a property’s condition at the start of a lease. It protects tenants from being required to put the property into a better condition than it was when they took occupation. It also provides landlords with clear evidence if deterioration occurs.

24. Who prepares the Schedule of Condition?

Usually, a chartered building surveyor prepares it, often instructed by the tenant before the lease is signed. However, both parties can agree to jointly commission it or approve a single copy to be attached to the lease.

25. What is the difference between an interim and terminal schedule of dilapidations?

• Interim Schedule – issued during the lease term to require the tenant to carry out repairs before expiry.
• Terminal Schedule – issued after lease expiry to claim the cost of outstanding works or losses.

Both must comply with the Dilapidations Protocol and be supported by evidence.

26. How is a dilapidations claim calculated?

Claims are typically based on the cost of remedial works, professional fees, and potential loss of rent during repairs. However, they are limited by Section 18(1) of the Landlord and Tenant Act 1927, which caps recovery to the actual diminution in the property’s value due to disrepair.

27. What is the Dilapidations Protocol?

It’s a pre-action procedure set out by the Civil Procedure Rules. It requires landlords and tenants to exchange detailed information about their claims and defences before any court action. Its aim is to encourage early settlement and transparency.

28. What defences can a tenant raise against a dilapidations claim?

Common defences include:

• The works claimed go beyond what the lease requires.
• The property is being redeveloped, so the landlord suffered no real loss (a Section 18 defence).
• The claim includes betterment (improving the property beyond its original state).
• The costs are excessive or unsupported by evidence.

29. What happens if landlord and tenant disagree on the dilapidations costs?

The dispute can often be resolved through negotiation or mediation. If that fails, either party can issue proceedings in the County Court. We guide clients through every stage, seeking early, cost-effective settlement.

30. Do I need a Solicitor for a Commercial Lease transaction

It is definitely worth investing in legal advise if you have to deal with anything related to a commercial lease. This is a complex area full of risk and a solicitor will protect your interests.

1. Signing leases without legal advice
2. Misunderstanding clauses leading to dispute
3. Failing to validly deal with 1954 Act exclusions
4. Failing to serve break notices properly or on time.
5. Failing to deal with licenses for alterations
6. Failing to execute properly
7. Failing to register the lease properly
8. Failing to use an appropriate plan and map
9. Overlooking repair obligations or dilapidation exposure
10. Misunderstanding what happens at the end of the lease

At Johnson & Boon Solicitors, we make it easy to get the legal help you need wherever you are in the UK.

Our head office is based in the Northwest of England, but we advise landlords and tenants nationwide.

Distance is no barrier: You’ll receive the same high standard of service, wherever you are located.

We aim to respond to all enquiries within one working day.

Call – 0151 637 2034

Email – info@johnsonandboon.co.uk

1. Lease Renewal and Rent Review – Retail Client, London

A long-standing retail tenant faced a lease renewal with a substantial proposed rent increase. Johnson & Boon reviewed the draft terms, challenged the valuation evidence, and negotiated a 15% rent reduction compared to the landlord’s initial proposal. We also secured a five-year renewal under the Landlord and Tenant Act 1954, maintaining continuity for the client’s flagship store.

2. Agreement for Lease – Developer Project, Birmingham

Our client was redeveloping a mixed-use building and needed to secure pre-let tenants before construction. We drafted and negotiated multiple Agreements for Lease, each conditional on planning consent and practical completion.

The development completed on time, with three fantastic tenants secured, giving our client strong investment value and future rental yield.

3. Dilapidations Dispute – Place of worship, Liverpool

At lease expiry, our landlord client received conflicting repair reports and faced a disputed dilapidations claim with a significant value. Johnson & Boon’s team collaborated with the surveyor, reviewed the schedule of condition, and dealt with a Section 18(1) defence.

We settled the matter during ongoing proceedings and our Landlord client received a significant sum.

4. Commercial Lease Assignment – Industrial Tenant, Leeds

An industrial client needed to assign its lease for a warehouse facility to another company.

Johnson & Boon prepared a comprehensive assignment pack and negotiated the landlord’s consent to assignment. The transaction was completed within weeks.

5. Schedule of Condition and Lease Negotiation – Start-up Tenant, Cardiff

A fast-growing technology company approached Johnson & Boon for help negotiating a new office lease. We reviewed and amended key clauses on rent reviews, service charges, and dilapidations, and arranged for a Schedule of Condition to be attached to the lease.

This protected the client from expensive repair obligations at the end of the term and ensured flexibility for future growth.

6. Lease Surrender and Exit Strategy – Hospitality Sector, Newcastle

When trading conditions changed, our client needed to surrender a 10-year lease early. We negotiated a Deed of Surrender

The exit was achieved without dispute, allowing the business to relocate and preserve financial stability.