Lease of part: industrial unit/warehouse on an estate

by Practical Law Property

A standard document for a lease of an industrial unit or warehouse that forms part of a building on an estate in England or Wales. This standard document is designed as a lease of part with an internal-only demise, where the tenant is responsible for repairs. It can be used as a full repairing and insuring (FRI) lease, while also providing the flexibility for the tenant's repair obligation to be qualified by a schedule of condition. The landlord handles the repair and maintenance of the estate common parts and the building's retained parts, recovering costs through a service charge. This standard document includes valuable optional provisions, such as a service charge cap subject to annual review against the Retail Prices Index (RPI), an upwards-only open market rent review with an optional cap and collar and a break clause. It also addresses uninsured risks, contains prescribed clauses for Land Registry purposes and can be adapted for use as a headlease, underlease, or renewal lease, with optional provisions for a tenant's guarantor.