Lease of part: retail unit on an estate

by Practical Law Property

A standard document for a lease of a retail unit that forms part of a building on a retail estate in England or Wales. This standard document is for a lease of part, with the demise including the shopfront and fascia but otherwise being an internal-only area for which the tenant is responsible for repairs. It is structured as a full repairing and insuring (FRI) lease but offers the flexibility for the tenant's repair obligation to be qualified by a schedule of condition. The landlord retains responsibility for the repair and maintenance of the estate's retained parts, recovering its costs through a service charge. This standard document contains valuable optional provisions, such as those addressing uninsured risks, 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. This versatile standard document can be adapted for use as a headlease, underlease or renewal lease and includes prescribed clauses and optional provisions for a tenant's guarantor .