Whether you’re expanding, downsizing, or tweaking the layout of your space, it’s essential to know how consent provisions operate and what legal protections you have. Getting this wrong can lead to delays, disputes, or even legal action. Here’s what tenants need to know about obtaining landlord’s consent.

Common Situations Where Consent Is Required

Most commercial leases contain clauses that restrict what a tenant can do without the landlord’s prior approval. Some of the most common actions requiring consent include:

1. Subletting

Subletting part or all of your premises to another business might make commercial sense – especially if you have extra space or need to reduce your overheads. However, most leases prohibit subletting without the landlord’s written consent. Some leases only allow subletting of the whole premises, and others may impose detailed conditions – for example, requiring the subtenant to be of similar financial standing or to enter into a lease on similar terms.

2. Assigning the Lease

An assignment is when you transfer your lease to another tenant, effectively stepping out of your obligations and letting someone else take your place. Again, this typically requires landlord consent. Landlords may wish to assess the incoming tenant’s covenant strength (their ability to pay the rent and comply with lease obligations), and some leases include conditions that the outgoing tenant acts as guarantor.

3. Carrying Out Alterations

Even relatively minor changes – like installing partition walls, fitting out a kitchen, or changing lighting – may require landlord approval. Most leases distinguish between structural and non-structural alterations, with the former being more tightly controlled. Even if works are permitted, you might still need to submit plans and get written consent before you start.

4. Changing the Use of the Property

Your lease will specify a permitted use – such as retail, office, or restaurant. If you want to change that use, particularly to something outside the scope of your lease or local planning rules, you’ll likely need your landlord’s written agreement. For example, changing from a retail shop to a takeaway might require both landlord’s consent and planning permission.

Always Check the Lease First

Before making any decisions or speaking to your landlord, take a close look at your lease. The relevant clauses will set out:

• Whether consent is required.

• The process for requesting it.

• Any time limits for a response.

• Whether consent can be withheld absolutely, or whether the landlord must act reasonably.

Some leases include a Qualified Covenant, which means the landlord can only refuse consent on reasonable grounds. Others may contain an Absolute Covenant, meaning the landlord can refuse for any reason – or none.

Making the Request

Always make your request in writing, and provide as much detail as possible:

• The proposed changes or transaction.

• Plans or specifications (for alterations).

• Financial and business details of the incoming tenant (for assignment or subletting).

• Any necessary planning permission or regulatory approvals.

The more complete your application, the harder it is for the landlord to justify delay.

What If the Landlord Delays or Refuses?

Under Section 1 of the Landlord and Tenant Act 1988, landlords must deal with requests for consent within a reasonable time and cannot unreasonably withhold or delay consent, where the lease includes a qualified covenant. If they breach this duty, you may be entitled to damages.

Reasonable refusal grounds might include:

• Poor financial standing of the assignee/subtenant.

• Inappropriate or non-compliant alterations.

• A proposed use that conflicts with planning rules or neighbouring leases.

Unreasonable grounds might include:

• A blanket refusal without explanation.

• Personal dislike of the new tenant.

• Using consent to renegotiate unrelated lease terms.

If you believe consent is being unreasonably withheld or delayed, legal advice is essential. In some cases, tenants may be able to apply to the court for a declaration that consent has been unreasonably refused.

Final Thoughts

Landlord’s consent isn’t just a formality – it’s a key part of managing your obligations and risks under a lease. Failing to get consent where it’s required can amount to a breach of lease, exposing you to potential forfeiture or damages. But equally, landlords can’t use consent provisions to frustrate reasonable tenant activity or squeeze extra concessions.

The golden rule?

Know your lease, communicate in writing, and seek professional advice early. A well-handled consent request keeps your business moving and your relationship with the landlord on stable ground.

The post Dealing landlords consent, what you need & when appeared first on Commercial Lease Advice.

Signing a new commercial lease is a significant step for any business. Whether you’re a start-up seeking your first premises or an established operator expanding your footprint, the terms of your lease can have long-term financial and operational impacts. It’s vital to approach lease negotiations with your eyes open and a clear understanding of what you can – and should – ask for.

Landlords often present leases as non-negotiable, but in reality, many lease terms are up for discussion. Being proactive, well-informed, and professionally advised can help you secure a lease that’s commercially viable and legally sound.

1. Request a Rent-Free Period

One of the most valuable incentives to negotiate is a rent-free period, especially if:

• You’re taking on a space that needs significant fit-out or refurbishment.
• You’re entering into a longer-term commitment.
• Market conditions favour tenants (e.g. high vacancy levels).

A rent-free period offers critical breathing room during the early stages of occupation, allowing you to invest in your business and settle in without immediate rent pressure. It’s a well-established commercial practice and often seen by landlords as a fair trade-off for tenant commitment.

2. Explore the Option of a Turnover Rent

If you’re in retail, hospitality, or leisure, where income is closely linked to footfall or seasonality, you might consider negotiating a turnover rent arrangement. This structure links part (or all) of your rent to your actual business performance.

How it works:

• You pay a base rent (usually lower than market rent).
• Plus a percentage of your turnover over a certain threshold.

Turnover rent can be beneficial during quieter trading periods, offering flexibility and a degree of risk-sharing with the landlord. It also aligns the landlord’s interests with your commercial success.

However, be prepared to:

• Share detailed financial information regularly.
• Agree on what counts as “turnover” (e.g. in-store vs online sales).
• Negotiate appropriate thresholds and caps.

This model isn’t for every tenant, but in the right context, it can provide a more sustainable rent structure.

3. Negotiate Flexible Terms – Especially a Break Clause

Lease lengths can vary, but committing for five, ten, or more years can be risky in a changing business environment. Always explore the inclusion of a break clause to give you flexibility.

Key considerations:

• When can the break be exercised (e.g. after 3 years)?
• Are there conditions attached (e.g. full rent paid, no breaches)?
• Is the break tenant-only or mutual?

Be cautious of overly technical break conditions, which can be difficult to satisfy in practice. A break clause should provide genuine flexibility—not a trapdoor.

4. Seek a Cap on Service Charges

Service charges in multi-occupancy buildings or estates can be a major and sometimes unpredictable cost. Without limits, landlords can pass on expensive upgrades or overambitious maintenance projects to tenants.

To manage this:

• Request a service charge cap or fixed increase mechanism.
• Ask for transparency through annual budgets and reconciliations.
• Specify which costs are and aren’t recoverable (e.g. major capital works).

A service charge cap is a simple way to introduce financial certainty and avoid disputes down the line.

5. Clarify Repair and Insurance Obligations

Repair obligations are a common source of cost and conflict. Many leases use “full repairing and insuring” (FRI) clauses, which can hold tenants responsible for more than they realise.

To protect yourself:

• Ask for a schedule of condition, which limits your liability to the property’s current state.
• Clarify whether your obligations include structural elements.
• Understand how building insurance is arranged—typically by the landlord, with costs passed on to you.

Review these clauses carefully, as they can have long-lasting financial consequences, especially when exiting the lease.

6. Get Professional Advice Early

Too often, tenants involve legal or property professionals only after they’ve agreed to the key commercial terms. By then, it can be harder to renegotiate.

Early advice from a solicitor and commercial surveyor can help you:

• Interpret legal jargon and highlight hidden liabilities.
• Benchmark your deal against market standards.
• Identify where you have negotiating power.
• Ensure the lease reflects what’s actually been agreed.

The upfront cost of professional advice can save you tens of thousands over the life of the lease.

Final Thoughts

Negotiating a commercial lease isn’t just about getting the keys—it’s about protecting your business. A poorly negotiated lease can tie your hands financially, whereas a well-structured one can give you flexibility, cost control, and room to grow.

To recap, consider asking for:

• A rent-free period.
• A turnover rent, if appropriate.
• A break clause for flexibility.
• A service charge cap.
• Clearly limited repair and insurance liabilities.
• And always get expert legal and property advice from the start.

Approach the lease as a business deal, not just a legal formality—and make sure it supports your business for the long haul.

The post Negotiating a new lease, what to ask for & what to avoid appeared first on Commercial Lease Advice.

This piece explores the key leasehold considerations when RAAC is discovered in a building and sets out a practical roadmap for navigating the issue with legal and commercial clarity.

1. The Presence of RAAC Doesn’t Automatically Mean There’s a Defect

RAAC has an estimated lifespan of around 30 years, but its performance depends on factors such as quality of installation, exposure to water ingress, structural support, and load-bearing conditions. In some cases, it may remain serviceable well beyond its expected life.

This is a crucial legal distinction: RAAC’s presence alone does not mean a building is defective or unsafe. The key issue is whether the RAAC in question shows signs of deterioration or damage. Landlords and tenants should therefore commission expert inspections to determine condition rather than reacting solely to composition.

2. Lease Obligations Depend on Condition

Most commercial leases include a repairing obligation on the tenant—typically requiring the premises to be kept in “good and substantial repair” or similar. Importantly, that obligation only applies where there is an actual need for repair. If RAAC is present but intact and performing adequately, it is unlikely to engage the tenant’s duty to repair.

If, however, RAAC has deteriorated and requires remedial action, then tenants may be liable, depending on the extent and location of the damage and the precise wording of the lease.

3. Who Pays for Major Structural Works?

A key area of potential dispute is where RAAC affects structural elements of the building and requires extensive remedial work. Responsibility for such work will turn on the terms of the lease.

Many commercial leases include clauses that shift responsibility for the structure to the landlord, with tenants contributing via a service charge. However, other leases—particularly full repairing and insuring (FRI) leases—may place liability for structural repairs directly on the tenant. This can extend even to major works, depending on the breadth of the drafting.

Each lease must be interpreted on its own terms. Ambiguity over whether structural RAAC work falls within the tenant’s obligations can lead to disputes, particularly if the costs are significant. Clarity is key, and parties should seek legal advice as soon as an issue is discovered.

4. Shared Areas Can Create Grey Zones

Where RAAC is present in common parts of a building—such as stairwells, service areas, or external walls—responsibility can become more complex. Tenants often contribute to the upkeep of shared areas via a service charge, but whether this extends to substantial remedial works depends on the service charge provisions.

Some leases allow landlords to recover the cost of such works, while others may contain limitations or exclusions. Tenants should review these provisions carefully and consider whether costs arising from latent defects or modernisation fall within the scope of recoverable expenditure.

5. Statutory Duties May Override Lease Terms

In addition to contractual obligations, both landlords and tenants must remain alert to their statutory responsibilities. Health and safety legislation, occupiers’ liability, and building regulations all require that premises be kept safe for those who live, work, or visit them.

Failure to manage known RAAC risks—even if not strictly a lease breach—could expose parties to regulatory enforcement or civil claims. In some cases, this may compel action regardless of how responsibilities are split under the lease.

Practical Steps: A Risk-Managed Approach

1. Instruct a Structural Survey
Before taking any action, instruct a qualified structural engineer to assess the condition of any RAAC. This evidence is essential for evaluating legal obligations and appropriate next steps.

2. Review the Lease Thoroughly
Examine repairing obligations, service charge clauses, and exclusions. Who is responsible for the structure? Are latent defects excluded? Understanding the detail is vital.

3. Communicate and Document
Open dialogue between landlords and tenants is crucial. Agree on access for surveys, short-term safety measures, and timelines for decision-making. Document everything.

4. Consider Monitoring Instead of Replacement
If the RAAC is stable, monitored management may be sufficient. Replacement is not always required immediately and can be planned over time as part of a wider maintenance strategy.

5. Ensure Compliance
Even where lease obligations are unclear, ensure that statutory duties are discharged. Liaise with insurers and regulatory bodies as needed and take early legal advice where risks are high.

Final Thoughts

The discovery of RAAC in a commercial building is not, in itself, a legal emergency. It should be treated as a condition-based issue, not an automatic trigger for costly remedial work. The presence of RAAC must be properly assessed before obligations can be determined.

For both landlords and tenants, a careful reading of the lease—combined with expert structural input—will be essential in managing the issue proportionately and lawfully. With collaboration, clear communication, and a focus on actual condition rather than worst-case assumptions, parties can manage RAAC-related risk without falling into unnecessary conflict or cost.

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