Can a landlord refuse to renew a commercial lease?
In England and Wales, only on specific statutory grounds if the tenant has 1954 Act protection, unless the lease was contracted out. In Scotland there is generally no right to renew.
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Commercial lease (England and Wales)
A commercial lease lets business premises — an office, shop, workshop or unit — to a tenant for a term in return for rent. It covers rent and review, repairs and insurance, permitted use, alterations, assignment and subletting, break rights and ending the lease. The formalities differ significantly between England and Wales and Scotland.
When you need one
Use one whenever a business takes exclusive possession of premises for a period. For short, flexible occupation, a licence may be possible, but it must not grant exclusive possession.
What it should contain
Premises and term
What is let and for how long.
Rent and review
Rent, payment dates and how and when it can be reviewed.
Repair and insurance
Who repairs what, and who insures the building.
Use and alterations
What the premises may be used for, and consent for changes.
Alienation
Whether the tenant can assign or sublet.
Break and termination
Early exit rights and forfeiture or irritancy for breach.
Points specific to England and Wales
- Under Part II of the Landlord and Tenant Act 1954, a business tenant usually has a right to renew unless the lease is contracted out using the statutory notice and declaration procedure before it is signed.
- A lease for more than three years must be made by deed, and one for more than seven years must be registered at HM Land Registry. Stamp Duty Land Tax may be payable.
- Be Contract Wise drafts leases of up to three years at a full market rent with no premium. For a longer lease, or one at a premium, it prepares heads of terms for your solicitor, because a lease that must be made by deed may only be prepared by a solicitor or other authorised practitioner.
Different rules can apply elsewhere in the UK: see the Scotland version of this guide.
Common mistakes
- A full repairing obligation on an old building without a schedule of condition.
- A break clause with conditions the tenant cannot realistically meet.
- Missing the formal steps that the law requires before the lease is signed.
See a specimen commercial lease — a short illustration of the structure and key clauses, laid out as the app produces them.
Quick answers
Who pays for repairs under a commercial lease?
Whoever the lease says. Many leases put full repairing and insuring obligations on the tenant, so check the building's condition first.
Draft your commercial lease now
Be Contract Wise's powerful, carefully prepared drafting tools turn a short set of plain-English questions into a commercial lease under the law of England and Wales, laid out to a professional standard, with an explanation of every clause. Simple or complex, export to Word or PDF.
Start drafting — freeBrowse all guidesReviewed 2026-09-24. General legal information about the law of England and Wales, not legal advice.