When renting a commercial property — whether it’s an office in Lincoln, a warehouse in Sleaford, or a unit in Grantham — the lease you sign is more than just a formality. It’s a binding contract that defines your rights, responsibilities, and financial commitments. So lets be clear on what the important commercial lease clauses are!
At Grantham Estates, we work with a wide range of businesses across the East Midlands and know how confusing lease agreements can feel — especially if you’re new to commercial property. That’s why understanding the key clauses in a commercial lease is essential before signing on the dotted line.
Here are the most important terms to look out for:
📌 Rent and Rent Review
This clause outlines how much rent you’ll pay and how often that amount will be reviewed.
A rent review typically happens every 3–5 years and can be based on market rates, RPI (Retail Price Index), or a fixed increase.
✅ Tip: Make sure you understand when and how the rent could change — especially if you’re budgeting for the long term.
🕒 Term of the Lease
This section defines how long the lease will last — often anywhere from 3 to 15 years — and whether there’s an option to renew.
Shorter leases offer flexibility, but longer terms can give security and negotiating power on rent.
✂️ Break Clause
A break clause gives either party the option to end the lease early, usually with advance notice and certain conditions.
If you’re a growing business or unsure of your long-term needs, a break clause can offer valuable flexibility.
🏢 Use Clause
This defines what you can (and can’t) use the premises for — for example, retail, industrial, office, or storage.
Want to adapt the space later? Check whether the use clause allows for that, or whether you’ll need permission.
🛠️ Repair and Maintenance
This clause outlines who is responsible for keeping the premises in good condition.
A full repairing lease makes the tenant responsible for everything — even if the building was in poor condition to begin with.
✅ Always check the property condition beforehand, and consider a schedule of condition to protect yourself.
🔁 Alienation Clause
This governs whether you can assign (transfer) the lease or sublet the premises to someone else.
Useful if you plan to move, downsize, or want flexibility later on — but restrictions can apply.
💡 Service Charges
If your property is part of a managed estate (like many of ours in Grantham or Sleaford), this clause outlines your contribution to the maintenance of shared areas — like car parks, landscaping, lighting, and security.
Ask for a breakdown of what’s included, and how charges are calculated.
🔒 Insurance Obligations
Leases will outline who is responsible for insuring the building (usually the landlord) and what kind of contents or liability insurance the tenant must have.
Ensure your policy meets lease requirements — and clarify if the landlord can recover their insurance costs from you.
Why It All Matters
Signing a lease is a big step for any business. Whether you’re opening your first workshop in Newark or expanding into new office space in Stamford, knowing what’s in your lease ensures you avoid surprises — and stay in control of your costs and commitments.
At Grantham Estates, we make the leasing process transparent and straightforward. We’re always happy to walk you through the terms and help you find a space that suits your business needs.
📞 Need Help Understanding a Commercial Lease Clause?
If you’re looking for commercial properties in the East Midlands or need help navigating a lease, get in touch with our local team today.
👉 Explore our available properties: https://granthamestates.co.uk/properties
👉 Read more helpful guides: https://granthamestates.co.uk/blog
📍 Based in Grantham, Lincoln, Newark, Sleaford or Stamford.
External Resource:
🔗 Gov.uk – Leasing business premises
📌 Important Commercial Lease Clauses In Summary
Here’s a quick checklist of key commercial lease clauses to look out for:
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Rent and rent reviews
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Lease length and renewal options
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Break clauses
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Use restrictions
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Repair and maintenance duties
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Alienation rights
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Service charges
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Insurance responsibilities
Review your lease carefully, and don’t be afraid to ask questions — it’s your business, after all.
