If you want to rent commercial real estate or equipment to others it is necessary to have the lease agreement in writing. It is important to remember that a business lease is not like a dwelling rental. You need the right form that helps you answer all of the important questions such as: who is responsible for repairs, what the landlord can charge, and what happens when the rent is late.
This Commercial Sublease Agreement for England and Wales is an up-to-date, legally accurate and easy-to-use form that's specifically tailored for commercial lease transactions. Because you can edit and use this form as often as you like, you get the ultimate flexibility to meet your unique business circumstances.
This is the content of the form and is provided for your convenience. It is not necessarily what the actual form looks like and does not include the information, instructions and other materials that come with the form you would purchase. An actual sample can also be viewed by clicking on the "Sample Form" near the top left of this page.
Commercial Sublease Agreement
(England & Wales)
This Packet Includes:
1. Instructions and Checklist
2. General Information
3. Commercial Sublease Agreement
Instructions and Checklist
Commercial Sublease Agreement
The Sublessor (the original Tenant) must sign the Sublease.
The Subtenant (the new tenant) must sign the Sublease.
Generally both the Sublessor and the Subtenant(s) each retain an original signed Sublease. Therefore, if there is one Sublessor and one Subtenant, two original Subleases should be executed (i.e. signed).
The Sublessor should provide the Subtenant with a copy of the Master Lease Agreement.
The Sublessor and the Subtenant(s) should conduct a joint inspection before the beginning of the sublease. Even if it is not a requirement to conduct a joint inspection, it is always a good idea to perform one.
The original lease between the Sublessor and the Landlord (the owner of the premises) may require that the Landlord consent to the Sublease. Check your original lease to determine whether it contains this provision. If it does, you must have the Landlord sign and date the Sublease in the appropriate space. In addition, in certain cases other entities (e.g. banks) may need to consent to the sublease. Again, check your original lease to determine what consents it requires.
Do not use this form if less than the entire premises are being sublet.
These forms contain the basic terms and language that should be included in similar agreements. Some cities and other municipalities may also have specific disclosure requirements that need to be included.
Laws vary from time to time. These forms are not intended and are not a substitute for legal advice. These forms should only be a starting point for you and should not be used or signed before first consulting with a solicitor to ensure that it addresses your particular situation. A solicitor should be consulted before negotiating any document with another party.
Commercial Sublease Agreement – Partial Premises
A commercial sublease agreement is an agreement used by a tenant to sublease part or all of commercial property to another for a portion or the remainder of his lease term. A tenant may choose to sublease for a number of reasons including relocation of business, reduction of business size or other business reasons. This agreement is for the sublease of only a part of the original leased premises.
A sublease agreement is made between the original tenant (“Sublessor”) and the new tenant (“Subtenant”). Depending on your original lease, to perform a sublease you may also need the consent of the Landlord (the owner of the premises) and possibly other entities (e.g. a bank). Review your original lease to determine whether such consents are required. If they are, contact the parties. The law generally does not require that these other parties give their consent to a sublease, so it is best to handle the situation diplomatically.
At times it may be required for the Sublessor and Subtenant to conduct an inspection of the premises to be rented either before physical occupancy by the Subtenant or before the sublease is signed. A joint inspection can also help the Sublessor justify any security deposit deductions, if warranted.
England, Wales and Scotland and localities may have different laws relating to commercial leases, so Sublessors and Subtenants should become familiar with the laws of their state and locality before entering into this type of arrangement. In addition, before using the form you should always consult with your solicitor to ensure that it addresses your specific situation.
This form complies with the laws of England and Wales.
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COMMERCIAL SUBLEASE AGREEMENT
This Sublease Agreement (the “Sublease”) is entered as of _________________________, 20____ by and between ________________________________________ (the “Sub-Lessor”) and _____________________ ________________________________________ (the “Subtenant”).
Sub-Lessor and Subtenant are sometimes collectively referred to as the “Parties.”
WHEREAS, the Sub-Lessor entered into a lease agreement dated _________________ with ___________________________ (the “Landlord”) as a party of the first part and the Sub-Lessor as a party of the second part and for a term ending on ___________________________ (the “Master Lease Agreement”). A copy of this Master Lease Agreement is attached hereto as Exhibit A; and
WHEREAS, Sub-Lessor and Subtenant wish to enter into this Sublease.
NOW, THEREFORE, the Parties agree as follows:
PREMISES: Sub-Lessor hereby subleases to the Subtenant the premises located at: ________________________ __________________________________________ ___________________________________________ [insert the complete address of Premises] (the “Premises”).
SUBLEASE TERM: The Sublease will begin on _____________ (begin date) and will end on ___________ (end date) (the “Sublease Term”).
LEASE PAYMENTS: Subtenant agrees to pay to Landlord/Sub-Lessor (circle one) the amount of £_________ (the “Rent”) as rent for the Premises, payable each month in advance on the first day of each month (the “Due Date”) at: _____________ __________________________________________________ (address for rent payment) or at any other address designated by Landlord/Sub-Lessor (circle one). If the Sublease Term does not start on the first day of the month or end on the last day of a month, the rent will be prorated accordingly.
LATE CHARGES: If the rent or any other monies due under this Sublease is not paid within _____ days from the Due Date, Subtenant agrees to pay a late fee of £________.
INSUFFICIENT FUNDS: Subtenant agrees to pay the charge of £_____ for each check that is returned for lack of sufficient funds.
BUSINESS TAXES: Subtenant shall pay all business taxes in respect of the business carried on in or upon the Premises.
SECURITY DEPOSIT: Upon execution of this Sublease, Subtenant shall deposit with Sub-Lessor/Landlord (circle one), in trust, a security deposit of £__________ as security for the performance by Subtenant of the terms under this Sublease and for any damages caused by Subtenant, Subtenant’s family, agents or visitors to the Premises during the Sublease Term. However, Subtenant’s liability is not just limited to the security deposit amount and Subtenant remains liable for any balance. Subtenant shall not apply or deduct any portion of the security deposit for the last or any month's rent. Subtenant shall not use or apply any such security deposit at any time in lieu of payment of rent. If Subtenant breaches any terms or conditions of this Sublease, Sub-Lessor or Landlord (circle one) shall forfeit the Security Deposit, as permitted by law.
QUIET ENJOYMENT: Subtenant shall be entitled to quiet and peaceful enjoyment of the premises, and neither Sub-Lessor nor Landlord will interfere with that right, as long as Subtenant pays the rent in a timely manner and performs all other obligations under this Sublease.
POSSESSION AND SURRENDER OF PREMISES: Subtenant shall be entitled to possession of the Premises on the first day of the Sublease Term. At the expiration of the Sublease, Subtenant shall peaceably surrender the Premises to Sub-Lessor or Sub-Lessor’s agent in good condition, as it was at the commencement of the Sublease, reasonable wear and tear excepted.
CONDITION OF PREMISES: Subtenant or Subtenant’s agent has inspected the Premises, the fixtures, the grounds, building and improvements (including but not limited to the electrical, HVAC and fire sprinkler systems, security and environmental aspects) and acknowledges that the Premises, the fixtures and the building are in good and acceptable condition and suitable for Subtenant’s intended use. If at any time during the term of this Sublease, in Subtenant’s opinion, the conditions change, Subtenant shall promptly provide reasonable notice to Sub-Lessor/Landlord (circle one).
TERMINATION: If any time during this Sublease Term, any of the Rent remains unpaid for a period of ____________ days after Due Date; or there is a material breach of any of the Subtenant's covenants under this Sublease; or the Tenant becomes or is declared insolvent under any relevant enactment, then the Sub-Lessor or Landlord may, at any time thereafter, re-enter the Premises or any part of them and thereupon the Sublease Term shall absolutely cease, arid, determine but without prejudice to any rights or remedies of any Party in respect of any antecedent breach of any of the obligations contained in this Lease.
OBLIGATIONS UNDER MASTER LEASE: Subtenant acknowledges the receipt of a copy of the Master Lease. Subtenant agrees that all terms and conditions of the Master Lease are hereby incorporated into this Sublease except for those provisions of the Master Lease that are directly contradicted by this Sublease, in which event the terms of this Sublease shall control over the Master Lease. Furthermore, the Subtenant will comply with the terms therein and will avoid actions or inactions that would constitute a breach or default of Sub-Lessor’s obligations in the Master Lease.
ASSIGNMENT AND SUBLETTING: Subtenant expressly covenants that it shall not assign, sublet, and mortgage the Premises, either in part or in whole, without the prior written consent of the Landlord, which consent shall not be unreasonably withheld or delayed.
SEVERABILITY: If any part or parts of this Sublease shall be held unenforceable for any reason, the remainder of this Sublease shall continue in full force and effect. If any provision of this Sublease is deemed invalid or unenforceable by any court of competent jurisdiction, and if limiting such provision would make the provision valid, then such provision shall be deemed to be construed as so limited.
BINDING EFFECT: The covenants and conditions contained in the Sublease shall apply to and bind the parties and the heirs, legal representatives, successors and permitted assigns of the Parties.
ENTIRE AGREEMENT: This Sublease constitutes the entire agreement between the Parties and supersedes any prior understanding or representation of any kind preceding the date of this Sublease. There are no other promises, conditions, understandings or other agreements, whether oral or written, relating to the subject matter of this Sublease. This Sublease may be modified in writing and must be signed by both Parties.
GOVERNING LAW: This Sublease shall be governed by and construed in accordance with the laws of England and Wales.
THIRD PARTY RIGHTS: Except as provided in this paragraph, this Agreement is made for the benefit of the parties hereto and is not intended to benefit, or be enforceable by, anyone else. A person or entity which is not a party to this Sublease has no rights under the Contracts (Rights of Third Parties) Act 1999 to enforce any term of this Sublease.
NO IMPLIED EASEMENTS: Nothing contained in this Sublease shall impliedly confer on or grant to the Subtenant any easement, right or privilege other than those expressly granted by this Sublease.
NOTICES: Any Notice and other communications which either party desires to give the other, may be given either personally or by post through certified mail, to the following address:
Section 196 of the Law of Property Act 1925 shall apply to all notices served under this Sublease, but such provisions shall be extended as follows:
a. If "Subtenant" includes more than one person, service of notice on any one of them shall be deemed to be service on them all.
b. any notice shall be correctly served if it is sent by recorded delivery post in a stamped addressed envelope, addressed to the Sub-Lessor or to the Subtenant as the case may be, and any Notice sent shall on proof of post be deemed to have been received.
c. any demand or Notice sent shall be treated conclusively as having been made, given or served on the second Working Day after the day of posting.
NO THIRD PARTY BENEFICIARIES: The provisions of this Sublease are for the benefit of the Sub-Lessor and the Subtenant only and do not create any rights, benefits or obligations for any other third party or entity.
DISPUTES WITH ADJOINING OCCUPIERS: Any dispute arising between the Subtenant and occupiers of any adjoining property belonging to the Landlord as to any easement, quasi-easement, right or privilege used in connection with the Premises or such adjoining property shall be determined by the Landlord and the proper costs which the Landlord so incurs shall be paid as the Landlord directs acting reasonably.
WAIVER: The failure of either party to enforce any provisions of this Sublease shall not be deemed a waiver or limitation of that party's right to subsequently enforce and compel strict compliance with every provision of this Sublease. The acceptance of rent by Sub-Lessor or Landlord does not waive Sub-Lessor’s right to enforce any provisions of this Sublease.
LEGAL FEES: In the event of any legal action by the parties arising out of this Sublease, the losing party shall pay the prevailing party reasonable attorneys' fees and costs in addition to all other relief.
ADDITIONAL PROVISIONS (Specify “none” if there are no additional provisions)
IN WITNESS WHEREOF, the parties have caused this Sublease to be executed the day and year first above written.
If Landlord’s consent is not required check here [__].
The undersigned, Landlord in the Master Lease, hereby consents to the foregoing Sublease Agreement.
OTHER REQUIRED CONSENTS
If no other consents are required check here [__].
The undersigned, ____________________________________________, hereby consents to the foregoing Sublease Agreement.
MASTER LEASE AGREEMENT