Guide for industrial and commercial tenants

This information only refers to lease properties held on our industrial and investment portfolio.

Building lease

Our standard industrial lease is a 5 year tenant FRI lease containing a break clause which allows the tenant to serve notice to quit any time after the first year, with 3 months' written notice being required.

An FRI lease means a full repairing and insuring lease where the tenatn undertakes property maintenance and repair, and the associated costs and building insurance are met by the Tenant.

The building insurance is provided by us under a block policy. The excess is £250. We recharge the insurance premium to the tenant which is collected with the rent and subject to annual variation..

Ground lease (or development lease)

This is a lease of land on which you can erect a permanent building or structure.

The structure is owned by you but the land remains in our ownership. Responsibility for maintenance, repair and insurance of the building lies with you.

Development leases run for 99 years and do not contain a break clause, therefore the only way you can give up the lease is via assignation.

Further information on assignations.

Compound lease

This is a lease of land on which you are not permitted to erect a permanent building or structure.

The land may be used for open storage or, if you get planning permission, a temporary structure can be erected but must be removed at the end of the lease.

Compound leases run for 5 years and the tenant may serve notice to quit any time after the first year with 3 months' notice being required.

Length of your lease

Towards the end of lthe ease term, it is normal practice for us to either:

• Offer you fresh terms and conditions to extend your existing lease which includes reviewing the rental charged
• Offer you a new lease.

This is subject to rent and non-domestic rates payments being up to date and generally complying with the terms of your lease. You should be aware that we may not offer fresh lease terms if there are any outstanding rent or non-domestic rates.