Catherine Angrave and Phillip Heseltine – Commercial Property partners – share their insights on what to look out for.
What should your lease include?
When you’re negotiating a commercial lease, make sure these essentials are covered:
- Rent and payment terms – including any rent review provisions
- Length of the lease – and whether you have security of tenure
- Early termination options – can you end the lease if needed?
- Repair obligations – who’s responsible for what?
- Alterations – can you build new stables or an arena?
- Subletting rights – if you want to lease out unused grazing or stables
- Condition at handover – how the property should be left when the lease ends
Can the landlord restrict how you use the property?
Yes. Your lease will include a “Permitted Use” clause, which defines what you can do on the property, such as training only, not livery.
If you want to change your business focus later, you’ll likely need the landlord’s consent and possibly planning permission. Keep in mind, this could also affect your rent.
Can someone who is leasing a property sub-let part of it to another party?
If you’re thinking of subletting part of the property, check your lease. Even if it’s allowed, you’ll probably need the landlord’s consent and must follow specific terms.
Who pays for utilities and business rates?
Typically, tenants pay these costs. If the property is part of a larger estate, make sure your share is fair and clearly documented in the lease.
Who is responsible for the maintenance of the property?
This depends on your lease. A “full repairing lease” means you’re responsible for everything, including structural repairs. If you’re leasing part of a property, you may only need to handle internal repairs. Clarify who maintains things like arena surfaces before you sign.
What should be included in the lease about accidental damage?
Usually, the landlord insures the property, and you reimburse the premium. But check what’s covered and what isn’t. You may want exclusions for uninsured risks.
What is the position with non-payment of rent?
If you fall behind, the landlord can repossess the property under a forfeiture clause (usually after 21 days of non-payment). If you have a guarantor, they may be called on to pay.
It is important to have upfront and open conversations with your landlord before rent arrears escalate. There may be rescheduling arrangements that can be agreed.
What if one party wants to end the lease early?
Unless you have a break clause or negotiate a surrender, you can’t just walk away. Break clauses allow early termination but must be followed to the letter.
What happens if the tenant passes away?
It depends on how the lease is held—by an individual, jointly, or by a company. In most cases, obligations pass to personal representatives or surviving tenants. Always check the lease for specifics.
Leasing can be a great way to run your horse-related business, but the details matter. If you’re unsure about any of these points, contact our Commercial Property team on 03456 465 465 or email enquiries@rotherabray.co.uk to get expert legal advice before signing.
This article was originally published in British Dressage Magazine.
Disclaimer: This blog is for information only and does not constitute legal advice. If you need legal advice, please contact us on 03456 465 465 or email enquiries@rotherabray.co.uk to get tailored advice specific to your circumstances from our qualified lawyers.
