Lease agreements form the basis of the legal relationship between a landlord and a tenant. Whether you’re letting a commercial unit or moving into a rented flat, it is important to understand the legal implications of the agreement you are entering into.

At Pre-Law, we support both landlords and tenants across Lancaster, Morecambe and the surrounding areas by ensuring their lease terms are clear, compliant, and properly documented. Below are five legal considerations that all parties should review before signing.

‍1. Check the Type of Tenancy or Lease

The legal framework varies depending on whether the lease is residential or commercial. Most residential arrangements in England are Assured Shorthold Tenancies (ASTs). Commercial leases are generally governed by the Landlord and Tenant Act 1954.

Understanding which type of lease applies will affect:

  • The right to remain in the property
  • Notice periods for termination
  • The process for regaining possession

If you are uncertain, we recommend getting the agreement reviewed before signing.

2. Ensure Rent Terms Are Clearly Defined

The rent might seem straightforward, but lease agreements often include clauses on how and when rent can be reviewed or increased.

Rent terms should be clearly set out in writing. This includes:

  • How and when rent is to be paid
  • Whether and how rent will be reviewed (e.g. annually, linked to inflation or market rates)
  • Any service charges or late payment fees

Transparent rent provisions help both landlords and tenants manage expectations and reduce the potential for disputes.

3. Clarify Repair and Maintenance Obligations

Many disputes arise because maintenance responsibilities aren’t fully understood. The agreement should set out who is responsible for:

  • Structural repairs
  • Day-to-day maintenance and upkeep
  • Reporting and completing repairs

For residential ASTs, landlords have legal obligations to maintain properties under the Homes (Fitness for Human Habitation) Act 2018. In commercial leases, tenants are often required to take on a full repairing and insuring (FRI) obligation.

4. Understand Termination Clauses and Notice Periods

Lease agreements should explain when and how either party can end the tenancy. This helps to manage expectations around fixed terms, early termination, and the notice required to bring the lease to an end.

The lease should include clear provisions on how it can be ended, including:

  • Break clauses, if applicable
  • Notice requirements and minimum notice periods
  • Whether the lease can be terminated early and under what conditions

Without a break clause, tenants and landlords are normally bound until the end of the fixed term, unless both parties agree otherwise.

5. Include Provisions for Dispute Resolution and Defaults

It’s important for the lease to outline what happens if things don’t go to plan. Having clear procedures in place for disputes or breaches helps both parties respond consistently and in line with the agreement.

Well-drafted agreements should include processes for managing:

  • Unpaid rent or other breaches
  • How disputes will be resolved (e.g. direct negotiation, mediation, or court action)
  • Deposit handling in line with Tenancy Deposit Scheme (TDS) requirements (for ASTs)

Setting out procedures in advance helps both parties deal with any problems that may arise during the tenancy.

Need help with a Lease Agreement?

We provide legal support for landlords and tenants at all stages of a lease — whether you're signing, letting, renewing, or reviewing - we can help.

Get in touch:

Call: 01524 907100
Email: info@pre-law.co.uk
Or submit an enquiry through our website: https://www.pre-law.co.uk/contact

 

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