

Before the grant of a lease to a prospective tenant is agreed, there are legal requirements landlords and tenants must meet. Grants of a lease are lengthy and complex documents that must be created by professionals to ensure they are legal and compliant. For landlords, these documents can also be costly, so making sure they are correct is important for both landlords and tenants.
The commercial property team at TV Edwards are experts in grants of commercial leases and are available to advise landlords of the necessary information needed, before and during the granting of a lease process.
Understanding Granting a Commercial Lease
A grant of commercial lease gives tenants possession of a property for a specific amount of time. This lease will define rights for both the landlord and the tenant over the specified fixed term, this includes rent amounts, maintenance and repairs.
Commercial leases are typically fixed term and either a business tenancy within the Landlord and Tenant Act 1954 or contracted out.
Key Steps in Creating a Grant of Commercial Lease
Before the grant of a lease to a prospective tenant and the terms that should be included in a lease and what should be required from a prospective tenant as a precondition to the grant of a new lease, the following vital factors require careful consideration:
- A lease should generally be a full repairing and insurance lease. In other words, the lease should obligate the tenant to carry out the repairs of premises for a lease of a part or the whole of the building as appropriate and require the tenant to keep the premises adequately insured.
- The obligation for the tenant to pay for the insurance, service charge and other outgoings should be expressly incorporated in the lease.
- The landlord should agree with the tenant as to what activities are to be carried out at the property and allow an appropriate user clause to be inserted in the lease.
- The rent and the rent review period should also be agreed in advance
In addition to the above, evidence of the financial standing, knowledge and the experience of the tenant should be a prerequisite condition. The provision of the relevant evidence and reference letters should be requested from the tenant at the outset.
The grant of a commercial lease to any tenant will most certainly require the lender’s written consent if there exists a registered charge against the property; we will endeavour to obtain this consent from your lender in a timely manner. Most importantly prior to granting any lease to a prospective tenant it is imperative to scrutinise and consider what planning use the property has been afforded by the local authority. In the absence of a specific use the alternative would be for the landlord to allow the prospective tenant a right to make an appropriate application to the local authority for the required planning use.
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Our Approach to Granting Commercial Leases
The above considerations are not exhaustive, we aim to discuss all your requirements and evaluate the legal capacity of the premises or property before a lease is issued. This is to ensure any grant of commercial lease is created and finalised in a timely and experienced manner.
Our Commercial Property Team offer a personal, friendly and professional service to all of our clients and will be able to assist you with your matter. If you have an enquiry and would like to speak with one of our specialist lawyers, please call us today on 0203 440 8000.
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Why Choose TV Edwards?
- Consistently ranked highly in legal directories – recognised by Legal 500 and Chambers UK
- Available 24/7 for legal support – call us on 020 3440 8000 for advice at any time
- Diligent problem-solvers – we will examine every detail to guarantee your rights are protected
- Down-to-earth service – we’ll explain everything in plain English, no needless complexity
Our Accreditations
TV Edwards are proud to be recognised in the Times Best Law Firms 2025 and 2026, with Lexcel and Cyber Essentials accreditations. Everyone at TV Edwards upholds the highest standard of professionalism and transparency. Our expertise in Commercial Property law guarantees that your needs are considered and met with diligence.
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Grant of Commercial Lease FAQs
What is the difference between a grant of a lease and an assignment of a lease?
A grant of lease is a new lease that has been created for a property. An assignment of a lease is the transfer of a lease from the current tenant to a new tenant.
Can you end a commercial lease early?
Unless there is a specified ‘break clause’ within the lease, commercial leases usually cannot be ended early. A break clause usually states a specific date in which the lease can be broken without penalty.
A landlord can approve an early end to a lease, however this needs to be agreed by both the tenant and the landlord.
Another way in which a lease can end early is a ‘forfeit clause’, which is often used when tenants don’t pay rent or service charges. However, this is often a lengthy process, as this can be challenged by tenants.