Free Commercial Sublease Agreement

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Length of Lease







Frequently Asked Questions

What is a sublease?Sublease is a legally binding contract made between a tenant and a new tenant (also known as a subtenant or a sublessee). The sublease gives the subtenant the right to share or to take over the rented premises from the first tenant. The subtenant pays rent directly to the first tenant while the first tenant pays rent directly to the landlord. The landlord still holds the first tenant directly responsible for the rent and for any damage, including any caused by the subtenant. Usually, the first tenant must get consent from the landlord before he/she is allowed to sublease the premises.Can I sublease a portion of the property rather than the entire property?Yes, you can sublease a part or all of the leased premises to the Subtenant.

Property Location

England

EnglandBuilt for England
Different countries have different rules and regulations. Your Commercial Sublease Agreement will be customised for England.


Frequently Asked Questions

Which country should I choose?The laws of the country where the property is located will be used to enforce this Lease and will be used to help resolve any disputes, regardless of which jurisdictions the parties reside.

Inspection Form


(e.g. 30)


Frequently Asked Questions

What is a check-in inspection form?What is a check-in inspection form?""The check-in inspection form is completed by the Subtenant within a reasonable amount of time after the Subtenant takes possession of the property. This form will contain a description of the condition of the property at the time of the Subtenant's possession, and will be used at the end of the sublease term as a comparison tool to determine if the Subtenant caused any damage to the property.How many days should the subtenant be given to complete a check-in inspection form?There is no statutory minimum amount of time, but the Sublandlord should give the Subtenant a reasonable amount of time. Depending on the circumstances under which the Subtenant will take possession, a reasonable period of time would likely be between 7 and 30 days.

Sublandlord Information

1

(e.g. John Smith Jr.)

Individual



(e.g. Street, City, County, Postcode)


Frequently Asked Questions

Who is the sublandlord?The Sublandlord or Sublessor is the person that entered into a lease with the original Landlord, and who is now leasing all or part of the Landlord's property to the Subtenant.

Subtenant Information

1

(e.g. John Smith Jr.)

Individual



(e.g. Street, City, County, Postcode)


Frequently Asked Questions

Who is the subtenant?The Subtenant or Sublessee is the person who is entering into a lease for some or all of the Landlord's property from the Sublandlord (the original Tenant).

Landlord Information

1

(e.g. John Smith Jr.)

Individual




Frequently Asked Questions

Who is the landlord?The Landlord in the party who leased out the premises in the master/original lease.

Master/Head/Original Lease Details



(e.g. Address, Town/City, County, Postcode)

Frequently Asked Questions

What is the master/head/original lease?This is the lease that the Sublandlord entered into with the Landlord and from which the Subtenant's interest will be created.

Consent and Master Lease




Frequently Asked Questions

Do I need to create the landlord's consent to sublease?The Landlord's Consent to Sublease should only be included in the Sublease Agreement if the Landlord has not previously provided written consent to the sublease.Do I need to provide the subtenant with a copy of the master lease?Yes, the Subtenant is entitled to a copy of the Master Lease. The Sublandlord can include a copy of the Master Lease with the Sublease Agreement, or can deliver a copy directly to the Subtenant.

Rent



(e.g. Street, City, County, Postcode)


Permitted Uses of the Premises



Frequently Asked Questions

Do I need the landlord's consent for certain usage?If there is an additional purpose, then you will need the landlord's consent to the additional permitted use.

Additional Sublease Info





If the Sublease is for a term of 7 years or more, provide a full description of the property being leased (i.e. as detailed as possible) for Land Registry purposes. Where mines and minerals, timber and trees, stream beds, roads or other physical features are specifically excluded, you should state this in the legal description. Your lease may be deemed defective or your application may be rejected without a complete description.



Damage Deposit



Frequently Asked Questions

What is a damage deposit?The damage deposit is money that the Subtenant pays to the Sublandlord at the start of the sublease term, which the Sublandlord will use to cover the costs of any repairs caused by the Subtenant that need to be done to the property at the end of the sublease term, after the Subtenant has vacated the premises.How much should the damage deposit be?Damage deposits are usually equivalent to the value of one month's rent, but can be any amount that the Sublandlord decides upon in a commercial setting.

Some sublandlord require the same amount of deposit as required in the master lease. More might be required if there is a greater risk.

Utilities and Other Costs



Insurance



Frequently Asked Questions

Should the subtenant have insurance?It is strongly advised that the Property should be insured. However, the Subtenant does not need to have their own insurance if the Sublandlord has obtained sufficient insurance to cover the Subtenant.

Land Registry Information for Prescribed Clauses Leases

Note: From June 2006, all registrable leases must come with prescribed clauses in order to be registered. The Land Registry will only rely on what is provided under the Prescribed Clauses to register a title. They will no longer review the lease itself. Ensure that you have included all relevant information in this section without any errors or omissions.
















Frequently Asked Questions

Do I have to provide landlord title number(s)?If the landlord's title is registered, you should provide title number(s). If the property is not registered, then you should leave this section blank.

If the prescribed clauses lease is granted between a trigger to first registration of the reversion and its lodgement, no title number(s) is required. The same applies to a lease using the prescribed clauses lodged as part of an application for first registration. Otherwise, if you do not complete this section with the relevant title number(s), the Land Registry will be unable to accept your application where use of the prescribed clauses is compulsory.Do I have to provide other title numbers?You must provide other title number(s) when there are any title(s) (other than the landlord's) against which you are applying to make entries on matters relating to:

     - rights of acquisition;

     - restrictive covenants given in this lease by the landlord in respect of land other than the property;

     - easements; or

     - an application for a standard form of restriction.

If you do not complete this section with the relevant title number(s), the Land Registry will be unable to accept your application where use of the prescribed clauses is compulsory.What are premiums?A premium is the price a tenant pays to a landlord to purchase a lease. A premium is most often taken in return for the rent being reduced to what would otherwise be payable. For new commercial leases not exceeding 25 years, it is rare to take a premium. Premiums are most commonly used for long leases of residential property.What is a restrictive covenant?A restrictive covenant is a legal obligation which limits/restricts the use of land. The party that is burdened by the covenant is sometimes referred to as a "covenantor" and the party that benefits from the covenant is sometimes referred to as a "covenantee." Often, restrictive covenants are used to preserve and protect the physical, social, and economic integrity of the neighboring property in a subdivision. They may be used to control lot size, control architectural design, or regulate activities.What is an easement?An easement is a right to use the land of another. A common example of an easement is a right of way (e.g. the right to pass over your neighbor's land to empty your bins).What is an estate rentcharge?The term 'Estate rentcharge' refers to how rentcharge is defined in s.1(2)(b) of the Law of Property Act 1925. In short, a rentcharge works like a ground rent as a (usually small) annual payment. Rent charges apply only in certain areas of England. If you are not aware of any rentcharges, select "No" to the question "Are there any estate rentcharges burdening the property?"What is a standard form of restriction?A restriction is an entry on the register which regulates how an estate or charge may be entered in the register. In effect, a restriction allows the estate or charge entry on the register only to the extent that the entry meets the terms of the restriction. Applicants may place restrictions for many different reasons. For example, an applicant who has a beneficial interest in a property may want a restriction that no disposition in that property can take place without the applicant's consent.

Standard forms of restriction are those restrictions prescribed by the rules. Applicants who fall within one of the standard forms of restriction do not have to satisfy the registrar that they have sufficient interest in the making of the entry. Standard forms of restriction are set out in the Schedule 4 of the Land Registration Rules 2003

Note: If the restriction affects only part of a title, you must incorporate a description of the affected part within the wording of the restriction along the lines set out below. As long as the wording is sufficient to identify the part of the title intended to be affected by the restriction, Land Registry will accept it. The description may take the form of either:

     - a verbal description (for example, "No disposition of [the part of] the registered estate [known as 22 Smith Street] by the proprietor of the registered estate is to be registered …"), or

     - a reference to the plan attached to the lease (for example, "No disposition of [the part of] the registered estate [shown edged blue on the plan to the lease] by the proprietor of the registered estate is to be registered …").

Land Registry will only accept a verbal description of the property (eg 22 Smith Street) where the precise extent of that property can be clearly identified on the Ordnance Survey map.

Alterations and Improvements



Frequently Asked Questions

Can I restrict what alterations the subtenant is allowed to make to the property?Yes, the Sublandlord can determine the extent to which the Subtenant can make alterations. The Sublandlord may reduce the Subtenant's right to make improvements from the level established for the Sublandlord in the Master Lease, but the Sublandlord cannot increase the Subtenant's right to make alterations beyond the level outlined in the Master Lease.

Additional Provisions


(You can add additional clauses if there are some information, details, terms or restrictions that the lease doesn't have but you wish to include. In most leases, this is not necessary.)


Do not use several names or words to refer to the same person or thing as it could cause confusion and ambiguity by seemingly introducing new or different people or items.

Certain words were capitalized and defined already in this lease. For example, the renter is called the "Tenant", and the rental property is called the "Premises". Use the same predefined terms in your additional clauses.

Do not use pronouns such as: they, us, we, our, you, or me. Pronouns may be ambiguous and can cause confusion. (e.g. The Tenant shall keep the patio free of lawn furnitures, instead of He must keep the patio free of lawn furnitures.)Plain English means language that is simple and conveys ideas with the greatest possible clarity and avoids using legalese.

Legalistic StylePlain English
at the present time now
due to the fact that because; since
during such time aswhile
for the duration ofduring
inasmuch asbecause; since
in the event thatif
notwithstanding the fact that although; even if
prior to before
pursuant to under; in accordance with
subsequent toafter
that certaina
with reference toabout

Do not abbreviate words.

Use numerals, not words, to denote amounts.

Try not to repeat or contradict what has already been stated in the residential lease agreement.

Only put one paragraph per additional clause.

Signing Details

Today



Frequently Asked Questions

Who should sign the sublease? Both the Sublandlord and the Subtenant should sign the Sublease, and it is strongly recommended that at least 2 witnesses also sign it.I do not know when the sublease will be signed. Can I fill in the date later?Yes, by selecting 'Unsure' as the date the agreement will be signed, a blank line will be inserted into the lease so that you can add the correct date after printing the document.


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