COMMERCIAL LEASE AGREEMENT
Important jurisdiction and formalities warning
This fictional sample is a general educational example, not legal advice and not a universally valid lease. Local law may require a prescribed form, registration, witnessing, notarisation, tax treatment, disclosure statement, accessibility terms or consent from a superior landlord. A solicitor or other qualified local adviser should review the document, title, permitted use and compliance requirements before signature.
1. Parties and premises
This Agreement is made on 14 September 2026 between Harbourstone Properties Limited, a company registered in England and Wales with its office at 7 Meridian Quay, Bristol BS1 4RT (the Landlord), and Northstar Bicycle Works Limited, a company registered in England and Wales with its office at 22 Rowan Street, Bristol BS2 9LF (the Tenant).
The Landlord lets to the Tenant the ground-floor workshop and retail unit known as Unit 3, Calder Mill, 18 Foundry Lane, Bristol BS4 7QJ, together with the loading bay marked Unit 3 on the plan signed by both parties. The letting includes the non-exclusive right to use the shared entrance, service yard and customer parking spaces, subject to reasonable estate rules. The Tenant accepts the premises in their present condition after inspecting them and receiving the Landlord's written schedule of condition dated 10 September 2026.
2. Term and possession
The term is five years beginning on 1 October 2026 and ending on 30 September 2031, unless it ends earlier under this Agreement or applicable law. The Landlord will give vacant possession on the start date once the Tenant has paid the first rent instalment and security deposit. The Tenant must not occupy or trade from the premises before the start date without written permission.
3. Rent and other payments
The annual base rent is £42,000, payable monthly in advance in twelve instalments of £3,500 on the first day of each month. The first payment is due on 1 October 2026. The Tenant must also pay any applicable value added tax, business rates, utilities and service charges that this Agreement properly places on the Tenant.
The Tenant must pay a security deposit of £7,000 by the start date. The Landlord may use it for unpaid rent, repair of Tenant damage or another proven amount due, after giving reasonable details, and the Tenant must restore the deposit within ten business days. Any balance is returned within thirty days after the Tenant has returned the premises and all accounts have been settled. Rent is reviewed on 1 October 2028 by reference to the percentage increase in the Consumer Prices Index, subject to a minimum of zero and a maximum increase of five percent.
4. Permitted use and compliance
The Tenant may use the premises only to sell, repair and assemble bicycles and related safety equipment, and for ordinary office and storage activities connected with that business. The Tenant must obtain and maintain all trading, planning, environmental, fire, employment and health-and-safety approvals. The Tenant must not cause nuisance, obstruct the estate, store hazardous materials beyond lawful small quantities, or conduct an activity that invalidates the Landlord's insurance.
The Tenant must keep the premises clean and secure, use suitable waste containers and comply with reasonable written estate rules. No sign, external alteration, extraction equipment or customer-facing change may be installed without the Landlord's prior written approval and any required public authority consent.
5. Repairs, alterations and services
The Tenant is responsible for the internal non-structural parts, shopfront glass, doors, fixtures, equipment and all damage caused by the Tenant or its visitors. The Landlord is responsible for the structure, roof and common areas, except to the extent that damage results from the Tenant's act or omission. The Landlord may enter on at least 48 hours' notice to inspect, repair or show the premises to a purchaser or prospective tenant, except in an emergency.
6. Insurance and liability
The Landlord will insure the building against usual commercial risks on reasonable terms and may recover a fair proportion of the premium through the service charge. The Tenant must maintain public liability insurance of at least £5 million per event, employer's liability insurance where required, and cover for its stock, equipment and business interruption. On request, the Tenant will provide evidence of current cover.
Each party remains responsible for loss caused by its negligence, breach or unlawful act. The Tenant indemnifies the Landlord against reasonable losses arising from its business or occupation.
7. Default and ending
If rent remains unpaid for seven days, or the Tenant materially breaches this Agreement and fails to remedy the breach within a reasonable period stated in a written notice, the Landlord may use the remedies available under applicable law. Those remedies may include recovery of sums, damages, termination or possession proceedings, but the Landlord must follow any mandatory notice and court process. The Tenant may terminate for a material Landlord breach that remains unremedied after reasonable written notice where applicable law permits.
At expiry or earlier termination, the Tenant must vacate, remove rubbish and personal property, return all keys and access cards, repair damage for which it is responsible and provide forwarding details. The Tenant remains liable for sums accrued before handover.
8. Notices and governing law
Notices must be delivered by hand, tracked post or confirmed email to the addresses above, or to a replacement address notified in writing. This Agreement may be changed only by a written document signed by both parties. If a clause is unenforceable, the remaining clauses continue so far as the law allows.
The parties intend this Agreement to be governed by the law of England and Wales, subject to mandatory property and commercial tenancy rules. The courts of England and Wales have jurisdiction, but this choice does not remove any statutory forum or protection that cannot lawfully be waived.
Signatures
Signed for the Landlord, Harbourstone Properties Limited:
Name: Marina Cole, Director
Signature: ____________________ Date: 14 September 2026
Signed for the Tenant, Northstar Bicycle Works Limited:
Name: Daniel Okafor, Director
Signature: ____________________ Date: 14 September 2026