Lease of part: high street shop

by Practical Law Property

A standard document for use as a lease of a high street shop forming part of a larger, multi-let building in England or Wales. This standard document is for a lease of part, with the demise being primarily an internal-only area but including the shopfront and fascia. It is structured as a full repairing and insuring lease (FRI lease) but includes the flexibility for the tenant's repair obligation to be qualified by a schedule of condition. The landlord retains responsibility for the repair of the building's retained parts, recovering costs through a detailed service charge mechanism. This standard document contains valuable optional provisions, including a service charge cap reviewable annually against the Retail Prices Index (RPI), an upwards-only open market rent review with a potential cap and collar and a break clause. Adaptable for use as a headlease, underlease or renewal lease, it also incorporates prescribed clauses and optional provisions for a tenant's guarantor, offering a versatile framework for various commercial letting arrangements.