Most commercial tenants read the rent figure and the term — and skim everything else. But English leases allocate risk in five places that rarely make the negotiation agenda, and each can cost far more than the rent.

1. The repair covenant (and the missing schedule of condition)

“To keep the premises in good and substantial repair” sounds harmless. On an older building it can mean you hand back the premises in better condition than you took them — at your cost. Dilapidations claims are capped by section 18 of the Landlord and Tenant Act 1927, but the drafting-stage protection is a schedule of condition: a photographic record annexed to the lease, with the repair obligation qualified against it. If your lease has a full repairing covenant and no schedule, that is the first thing to negotiate.

2. The service charge with no ceiling

An uncapped service charge is a blank cheque, and since Arnold v Britton [2015] UKSC 36 the courts will enforce clear escalation wording even where the results are harsh. Caps are not implied — they are negotiated. Ask for an annual cap (indexed), exclusion of capital improvements, and the right to inspect the accounts.

3. The break clause conditions

A tenant break right is only as good as its conditions. “Vacant possession” and “all payments made” conditions have defeated many break notices over trivial sums. Aim for conditions limited to principal rent paid — and diarise the notice window the day you sign.

4. Alienation: your exit route

If the lease bars assignment and subletting absolutely, you have no way out for the whole term. Market standard is assignment of the whole with landlord consent not to be unreasonably withheld — a qualified covenant to which section 19 of the Landlord and Tenant Act 1927 applies.

5. Security of tenure — in or out?

Business tenancies enjoy renewal rights under Part II of the Landlord and Tenant Act 1954 unless the lease was validly “contracted out” using the statutory notice-and-declaration procedure. If your lease is silent, you may have more protection than you think; if you signed a declaration, you have none. Know which side of the line you are on before you invest in the premises.

The pattern

Every one of these is invisible on a quick read and expensive at exit. A structured review before signature — human or AI-assisted — costs a fraction of any one of them.

Check your document before you sign it. Legal Case Analyst reads contracts, leases, judgments and legislation under the law of your specific jurisdiction and returns severity-ranked issues with verifiable citations — as a Word/PDF report within 24 hours. Founding reports are £12 (normally £24) for the first 100 customers.

This article is general information, not legal advice. No solicitor/attorney–client relationship is created by reading it. For advice on your situation, consult a licensed practitioner in your jurisdiction.