Workshop Lease Agreement

This workshop lease template, in a “Download Now” Word format, is a commercial lease between landlord and tenant for the letting of a workshop on a short-term basis.

This template can be used when the term of the workshop lease is less than seven years.

Our Workshop Lease Agreement provides you with an easy to use commercial lease, which can be simply adapted to meet your needs.

In an instant, our Workshop Lease Agreement ensures that you meet the requirements of tenancy law and includes the necessary forms and wording to stop the tenant from getting security of tenure under the Landlord & Tenant Act 1954.

This Workshop Lease Agreement is a comprehensive document, which includes 19 easy-to-follow sections.

Clauses in the Workshop Lease Agreement

• The landlord and tenant's rights under the terms of the commercial lease
• Rent, interest and rent review
• Repair and decoration of the workshop
• The landlord and tenant's legal obligations under the terms of the commercial lease
• Alterations of the commercial premises
• Insurance
• Subletting
• The tenant's use of the workshop
• Indemnity
• Returning the workshop to the landlord at the end of the commercial lease
• And much, much more...

For further details of the terms included in this Workshop Lease Agreement, see the ‘Contents’ tab above.

Drafted by solicitors for straightforward completion, the “Download Now” workshop lease template includes guidance on how to fill it in.

Workshop Lease Agreement is one of a range of lease templates we provide. The others are:

• Shop Lease Agreement
• Short Term Lease Agreement
• Long Term Leas Agreement
• Restaurant Lease Agreement
• Cafe Lease Agreement
• Office Building Lease Agreement

Workshop Lease Template Note:

Workshop Lease Agreement is supplied by ContractStore.com.

Contents of Workshop Lease Agreement

This lease agreement template is intended for use of a short term workshop lease (i.e. one of less than 7 years’ duration) where assignment and sub-letting isn't permitted.

It's assumed that the workshop lease will be contracted out of the Landlord and Tenant Act 1954 and that it will be a headlease or, if an underlease, that it complies with the requirements of the headlease. This Workshop Lease Agreement has been drafted so as to comply with the relevant recommendations of the Code of Practice for Commercial Leases (second edition, April 2002).

Landlord and tenant law is a complex area of law and it's always recommended that you take legal advice before entering into a commercial lease, whether you're a landlord or a tenant.

Specific clauses

1. Definitions

There are a number of details to be completed here, including:

• The address of the building and details of the premises
• The interest rate on any late payment of rent 
• The term (i.e. duration) of the workshop lease
• The rent: normally an annual sum
• Permitted use

2. Grant

This workshop lease agreement is granted for a fixed term. No title guarantee is given. The grant is made subject to the matters affecting the landlord’s title at the date of the commercial lease.

The rent together with VAT on it and all other sums due under the commercial lease are all reserved as rent.

3. Rights

This section of the workshop lease agreement describes the rights granted to the tenant and the rights reserved to the landlord together with other rights to which the commercial lease is subject. Reference is made to the rights and reservations in the transfer under which the landlord holds the freehold of the premises. This clause expressly excludes any rights over any adjoining property (other than any rights which may be specifically granted in the lease). 

This clause also excludes the provisions of section 62 of the Law of Property Act 1925 in the absence of which the commercial lease would confer on the tenant all easements, rights and advantages enjoyed by the premises at the date of the workshop lease agreement.

4. Rent and other payments

This section of the workshop lease agreement lists payments the tenant must make, including rent and all outgoings in respect of the premises (including VAT).

5. Insurance

The landlord must insure the building (other than plate or window glass) and the tenant refund a fair proportion of the premium. 

6. No assignment, subletting or dealings

This section of the commercial lease includes an absolute prohibition on dealings.

7. Repair and decoration

This isn't intended to be a full repairing and insuring commercial lease. There are four specific obligations on the tenant:

1. To keep the premises clean and tidy and to keep the windows clean
2. To replace broken or damaged glass
3. To keep all electrical and mechanical appliances serviceable
4. To redecorate and replace the floor coverings at the end of the term.

There is then a general repairing obligation on the tenant. On the assumption that the workshop lease isn't a full repairing lease, the section includes wording limiting the repairing obligation by reference to a schedule of condition. It may not be worth the time and expense of preparing a schedule of condition for a short-term lease agreement and, from the tenant’s point of view, it would be better to delete the obligation all together.

If the tenant retains structural parts, the tenant may require a repairing obligation on the landlord.

8. Alterations and signs

This section of the workshop lease agreement allows the tenant to put up and remove non-structural, demountable fittings. Re-instatement is required at the end of the term, only if this is reasonable.

Otherwise, the tenant may not carry out any alterations including alterations to service media. 

9. Tenant to remedy breaches

The landlord has a right to enter the premises to carry out repairs if the tenant fails to do so.

10. Use

The permitted use is as a workshop in connection with the tenant’s business. This section of the workshop lease template also covers further obligations placed on the tenant concerning their use and occupation of the premises.

11. Legal obligations

This section sets out the tenant’s obligations to comply with all lawful requirements in respect of the premises.

12. Returning the premises to the landlord

This section sets out the tenant’s obligations at the end of the workshop lease to remove all stock, fixtures and fittings.

13. Indemnity

There is a broad obligation on the tenant to indemnify the landlord both for breach of covenant and for the tenant’s acts or omissions. Acts or omissions are not limited to negligent acts or omissions and a tenant will need to check that they have appropriate insurance cover or seek to amend the provisions in this section of the lease agreement.

14. Landlord’s covenant for quiet enjoyment

The landlord covenants with the tenant that, so long as the tenants pays the rents reserved by and complies with its obligations in the commercial lease, the tenant shall have quiet enjoyment of the premises without any lawful interruption by the landlord or any person claiming under the landlord.

15. Condition for re-entry

The landlord may re-enter the workshop at any time if the tenant doesn't pay the rent for 21 days or breaches any condition or tenant covenant of the commercial lease.

16. Liability

The obligations of the tenant are owed to the landlord and the obligations of the landlord are owed to the tenant.

17. Notices

This Workshop Lease Agreement includes a short form notice clause. Notices must be in writing (except in case of emergency or if the commercial lease states otherwise) and writing includes faxes but doesn't include email.

18. Entire agreement and exclusion of representations

The purpose of an entire agreement clause is to set the limits of contractual obligations and to prevent the party relying on the clause from being liable for representations made before the commercial lease agreement is entered into. 

In this clause, the landlord seeks to exclude liability for pre-contractual (mis)representation. This will only be valid if it's reasonable and the issue of reasonableness will be looked at in the context of each particular case.

19. Miscellaneous

It's assumed that this commercial lease will be excluded from the security of tenure provisions of the Landlord and Tenant Act 1954.

This clause also excludes the operation of the Contracts (Rights of Third Parties) Act, which might give certain third parties the benefit of provisions in the Workshop Lease Agreement.