A commercial lease is a long marriage. Read it before you say yes
Everyone reads the rent. Almost nobody reads the repairing clause. Guess which one turns up with a five-figure bill at the end of the term.
By Robert Festenstein, Head of Legal
Updated 22 June 2026
7 min read
The short version
- A lease is a multi-year financial commitment — the detail matters as much as the rent.
- 'Full repairing and insuring' can hand you a big, hidden bill. Negotiate a schedule of condition.
- Break clauses give flexibility, but only if you hit every condition exactly.
- Many business tenants have a legal right to renew — unless it's been contracted out. Know which you've got.
- Whether you're landlord or tenant, get the lease read before you sign.
Rent is only the start
The headline rent is the number everyone fixes on. It's also the least of your worries. A lease sets the term (how long you're locked in), the rent review (how the rent goes up — often only ever up), and the service charge. On a multi-year lease, the review mechanism can cost you more over time than the opening rent ever did. Read it as the financial commitment it is.
The clause that bites
This is where tenants get caught. A full repairing and insuring lease puts the cost of keeping the property in repair — and sometimes putting it into better condition than you found it — squarely on you. At the end of the term the landlord can hit you with a dilapidations claim, and those run to serious money. The single best protection a tenant can negotiate is a schedule of condition at the start: photographs and a record of exactly what state the place was in, so you're not on the hook for wear that was there before you arrived.
Want this looked at for your situation?
Book a no-obligation conversation with one of our solicitors.
Break clauses: read the small print twice
A break clause lets you end the lease early — priceless if your business grows, shrinks or moves. But break clauses are ruthless about detail. Miss the notice deadline by a day, or fail a condition (rent paid up to date, vacant possession given), and the break simply fails — leaving you tied in for years. If a break clause matters to you, its conditions need to be clear and genuinely achievable, not a trap dressed up as an option.
The right to stay
Many business tenancies carry security of tenure under the Landlord and Tenant Act 1954 — a legal right to renew when the lease ends. Landlords often want that right contracted out, which needs a specific procedure before you sign. Whether you want it in or out is a genuine commercial decision with long consequences, and it's worth advice whichever side of the lease you're on.
Frequently asked questions
What does 'full repairing and insuring' mean for me?
It makes you, the tenant, responsible for the cost of repairing the property and covering the landlord's insurance — potentially including putting it into better nick than you found it. It's common, and it's a real cost, so negotiate a schedule of condition to cap your exposure.
What's security of tenure?
Under the Landlord and Tenant Act 1954, many business tenants have a right to renew when the lease ends. Landlords sometimes exclude it ('contract out'), which needs a set procedure before signing. Whether it's in or out matters a lot to both sides — take advice.
Can I get out of a commercial lease early?
Only if the lease lets you — usually via a break clause, assigning it to a new tenant, or negotiating a surrender with the landlord. Break clauses have strict conditions you have to meet exactly, so get advice early if flexibility matters.
Sources & further reading
This article is general information, not legal advice. The law changes and depends on your circumstances — always take advice on your specific situation before acting. Last reviewed 22 June 2026. Buzz Solicitors is a trading name of AD Solicitors Limited, a recognised body regulated by the SRA (no. 8011228).
A solicitor with more than two decades' experience in commercial law, dispute resolution, insolvency and judicial review. Robert acts for businesses, directors and individuals on the matters that carry real consequence — and leads Buzz Solicitors.
Practical law, direct to your inbox.
One useful email a month on commercial, property and private-client law for business owners — no jargon, no spam, unsubscribe anytime.
By subscribing you agree to our privacy notice.