Underlease of whole: office

by Practical Law Property

Maintained | England, Wales

A standard document for use as an underlease of the whole of an office building in England and Wales. This standard document assumes the superior landlord insures the building under a superior lease, and it therefore requires the tenant to pay the landlord the insurance rent that the landlord pays under that superior lease. It is structured to function as a full repairing and insuring (FRI) lease, while also offering the flexibility for the tenant's repair obligation to be qualified by a schedule of condition. As the landlord does not retain any part of the building, this standard document does not contain service charge provisions. It includes versatile optional provisions for rent review, allowing for either an upwards only open market rent review with a potential cap and collar, or for the rent to align with the revised rent payable under the superior lease. This standard document also contains optional provisions to address uninsured risks, a break clause, and wording to adapt it for use as a renewal lease. It incorporates prescribed clauses and optional provisions for a tenant's guarantor, providing a robust framework for office underlettings .

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