This Shop Lease Agreement, in a “Download Now” Word format, is a commercial lease between landlord and tenant for the letting of a shop on a short-term basis.
Drafted by solicitors for straightforward completion, the agreement is in Word format and is available to download instantly after purchase.
This shop lease template can be used when the term of the lease is relatively short. It's easy to use, includes expert guidance notes on how to fill it in and can be simply adapted to meet your needs.
In an instant, our Shop Lease Agreement ensures that you meet the requirements of tenancy law and includes wording in the lease designed to stop the tenant from getting security of tenure under the Landlord & Tenant Act 1954, together with guidance notes on the related formalities.
This document has 19 clauses outlining:
For further details of the terms included in this legal form, see the ‘Contents’ tab above.
Note: This Shop Lease Agreement is supplied by ContractStore.com and is one of a range of commercial lease agreements we provide.
Contents of Shop Lease Agreement
This lease agreement template is intended for use of a short term shop lease where assignment and sub-letting isn't permitted.
It's assumed that this shop lease agreement will be contracted out of the Landlord and Tenant Act 1954 and that it will be a head lease or, if an under lease, that the lease complies with the requirements of the head lease. It has been drafted so as to comply with the relevant recommendations of the Code of Practice for Commercial Leases (second edition, April 2002).
Landlord and tenant law is a complex area of law and specialist legal advice is always recommended before entering into a commercial lease, whether you are a landlord or a tenant.
There are a number of details to be completed here, including:
The lease is granted for a fixed term. No title guarantee is given. The grant is made subject to the matters affecting the landlord's title at the date of the agreement.
The rent, together with VAT on it, and all other sums due under the lease agreement are all reserved as rent.
This section describes the rights granted to the tenant and the rights reserved to the landlord, together with other rights to which the lease agreement is subject. Reference is made to the rights and reservations in the transfer under which the landlord holds the freehold of the premises. This clause expressly excludes any rights over any adjoining property (other than any rights which may be specifically granted in the lease).
This clause also excludes the provisions of section 62 of the Law of Property Act 1925 in the absence of which the commercial lease would confer on the tenant all easements, rights and advantages enjoyed by the premises at the date of the lease.
4. Rent and other payments
This section lists payments the tenant must make, including rent and all outgoings in respect of the premises (including VAT). This section does not include a rent review clause.
The landlord must insure the building (other than plate or window glass) and the tenant refund a fair proportion of the premium.
6. No assignment, subletting or dealings
This section includes an absolute prohibition on dealings, i.e. transferring the shop lease to someone else or subletting.
7. Repair and decoration
This isn't intended to be a full repairing and insuring commercial lease. There are three specific obligations on the tenant:
There is then a general repairing obligation on the tenant. On the assumption that the shop lease isn't a full repairing lease, this section of the agreement includes wording limiting the repairing obligation by reference to a schedule of condition. It may not be worth the time and expense of preparing a schedule of condition for a short term commercial lease and, from the tenant's point of view, it would be better to delete the obligation all together.
If the tenant retains structural parts, the tenant may require a repairing obligation on the landlord.
8. Alterations and signs
This section allows the tenant to put up and remove non-structural, de-mountable shop fittings. Re-instatement is required at the end of the term of the lease agreement, only if this is reasonable.
Otherwise, the tenant may not carry out any alterations including alterations to service media.
9. Tenant to remedy breaches
The landlord has a right to enter the premises to carry out repairs, if the tenant fails to do so.
The permitted use is as a shop for sale of specified items. The description of the specified items in the lease agreement should be wide enough to cover the tenant's proposed business over the term of the lease.
11. Legal obligations
This section sets out the tenant's obligations to comply with all lawful requirements in respect of the premises.
12. Returning the premises to the landlord
This section sets out the tenant's obligations at the end of the commercial lease to remove all stock, fixtures and fittings.
There is a broad obligation on the tenant to indemnify the landlord, both for breach of covenant and for the tenant's acts or omissions. Acts or omissions are not limited to negligent acts or omissions and a tenant will need to check that they have appropriate insurance cover or seek to amend the provisions in this section.
14. Landlord's covenant for quiet enjoyment
The landlord covenants with the tenant that, so long as the tenants pays the rents reserved by and complies with its obligations in the shop lease agreement, the tenant shall have quiet enjoyment of the premises without any lawful interruption by the landlord or any person claiming under the landlord.
15. Condition for re-entry
The landlord may re-enter the shop at any time if the tenant doesn't pay the rent for 21 days or breaches any condition or tenant covenant of the lease agreement.
The obligations of the tenant are owed to the landlord and the obligations of the landlord are owed to the tenant.
This lease agreement template includes a short form notice clause. Notices must be in writing (except in case of emergency or if the agreement states otherwise) and writing includes faxes, but doesn't include email.
18. Entire agreement and exclusion of representations
The purpose of an entire agreement clause is to set the limits of contractual obligations and to prevent the party relying on the clause from being liable for representations made before the shop lease is entered into.
In this clause the landlord seeks to exclude liability for pre-contractual (mis)representation. This will only be valid if it's reasonable and the issue of reasonableness will be looked at in the context of each particular case.
Landlord and Tenant Act 1954
It's assumed that this commercial lease will be excluded from the security of tenure provisions of the Landlord and Tenant Act 1954.
Under the Landlord and Tenant Act 1954, a business tenant is entitled to have their lease renewed at the end of the term, except in certain circumstances; in particular, when the landlord wants to redevelop the site. It's, however, possible to exclude the provisions of the Act so that the tenant doesn't have any protection. There are now three specific requirements if the tenant isn't to obtain security of tenure at the end of the term:
Contracts (Rights of Third Parties) Act 1999
This clause also excludes the operation of the Contracts (Rights of Third Parties) Act, which might give certain third parties the benefit of provisions in the lease agreement.
Landlord and Tenant (Covenants) Act 1995
It's common practice to include a statement that the commercial lease is a new tenancy for the purposes of the Landlord and Tenant (Covenants) Act 1995 (i.e. one granted after 1 January 1996) so that the status of the agreement is clear.