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ARTICLE · 26 JUNE 2025

Pastures New? Two More Key Lease Costs

Bexley Beaumont
Bexley Beaumont
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In the fifth of this year's landlord and tenant series, Real Estate partner Emily Carey highlights the two more categories to consider when agreeing heads of terms (HoTs) for a new commercial lease – the repair clause and the "yield-up" clause.

United KingdomReal Estate and Construction
Emily Carey
Emily Carey

In the fifth of this year's landlord and tenant series, Real Estate partner Emily Carey highlights the two more categories to consider when agreeing heads of terms (HoTs) for a new commercial lease – the repair clause and the "yield-up" clause.

Who is the agent acting for?

The prospective tenant must remember that the agent is acting in the best interests of the landlord, not the tenant. Whilst there is overall common ground to secure good premises for a good tenant, the agent has no obligation to explain or soften the impact of various "standard" terms in the HoTs. Some of these terms can have a very serious financial impact on the tenant.

FRI Lease means ...?

It means a "Full Repairing and Insuring Lease" but in turn, what does that mean? Whole chapters have been written on the interpretation of repair covenants, but in broad terms, the usual "full repair" clause means that the tenant takes on the property as it is, but has to give it back in good repair

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