20 Legal issues every tenant should review before signing a commercial lease

Signing a commercial lease is a significant commitment that can have long-term financial and legal implications for your business. While every lease is different, taking the time to understand the key terms before signing can help you avoid costly surprises later.

Although some terms may appear straightforward, the wording of a commercial lease can significantly affect your business operations and future costs. Seemingly minor clauses relating to repairs, rent reviews or service charges can result in unexpected financial liabilities if they are not fully understood before you commit.

Before signing a lease, here are 20 things every tenant should review:

1. Length of the lease.
2. Rent amount and payment dates.
3. Rent review provisions.
4. Break clause rights.
5. Security of tenure under the Landlord and Tenant Act 1954.
6. Repair and maintenance obligations.
7. Responsibility for service charges.
8. Buildings insurance costs.
9. Permitted use of the property.
10. Restrictions on alterations.
11. Rights to assign or sublet the lease.
12. Whether personal guarantees are required.
13. Responsibility for utilities.
14. Parking and access rights.
15. Signage and advertising permissions.
16. Compliance with planning and licensing requirements.
17. Energy Performance Certificate (EPC) obligations.
18. Dilapidations liability at the end of the lease.
19. Conditions for renewing or ending the lease.
20. Any additional costs, such as legal fees or management charges.

Obtaining legal advice before signing allows potential issues to be identified, negotiated where appropriate and ensures the lease reflects your commercial objectives. Whether you are taking on your first premises or expanding your business, reviewing the lease carefully can provide peace of mind and help protect your investment.

At Progression Solicitors, our commercial property team provides practical, straightforward advice to businesses across Cumbria and Lancashire. If you are considering signing a commercial lease, we can help you understand your obligations, negotiate favourable terms and ensure your interests are protected from the outset.