What is a Description of Premises in England and Wales?

If you rent commercial property in England and Wales, you must sign a commercial lease agreement. This document outlines the contract you and your landlord have made and details the leased property. The section detailing the property is the description of premises. This article will explain the information within the description of premises and why it is essential.

What is in a Commercial Lease Agreement?

Your commercial lease agreement is a legally binding document that details the property you are leasing. It explains what you can use it for and includes details of the agreement that you and the landlord have made. For example, this agreement will include clauses that detail: 

• the type of property being let (for example, a retail unit in a shopping centre, a floor of an office building, or a small unit in a business park);
• what you can use for the property for;
• the address of the property; 
• a description of the property, together with any relevant plans; 
• details about the agreed lease fixed term;
• any provisions around the right of the parties to end the lease early through a break clause;
• any provisions around the tenant’s ability to assign or sublet the property to someone else;
• the rental amount for the property and when you should pay the rent; and 
• provisions about repairs and maintenance obligations of each party.

What Does a Description of Premises Cover?

The lease must describe the property you are leasing. It will include the address of the premises you are renting and the extent of the property, both external and internal. For example, this might include a plan showing which part of a larger property you are leasing, defining the boundaries clearly. If you rent an area in an office building, a floor plan will show the exact area you are leasing.  

It will also explain or show the access routes to the property and any rights of way, particularly if these are unclear. For example, if you lease a retail unit in a shopping centre, you would need to cross the shopping centre land to access your shop. You must also have a way to access a loading bay and refuse areas. An office unit might include a detailed floor plan as well.

The description of the premises may include details of the fixtures and fittings included in the property. Fixtures are fixed to the property and not easy to remove. For example, these may include any built-in furniture, a small bathroom, or a kitchen facility. Fittings are items not affixed to the property. For example, if the property you are leasing has a small fitted kitchen for staff, a standalone refrigerator that you can move around the property would be a fitting.

The Importance of the Description of Premises

The description of the premises must be accurate. This means there are no surprises later on. Additionally, a description of premises is important because the tenant is usually responsible for the repair and maintenance of the property. If you are renting a whole building, you are responsible for maintaining the whole of it. However, if you rent one part of a larger property, you must only repair the parts under your control and use.

Similarly, if the property description includes fixtures and fittings, these should be detailed.

Maintenance and Repair Obligations

Because it is usually the tenant’s responsibility to repair and maintain the premises they are renting, it is also essential that the property’s condition, fixtures and fittings are included in the lease. This information may be contained in a separate Schedule of Condition document, mainly where the property is not in perfect condition.

Key Takeaways

The description of premises in a commercial property lease must accurately describe the property, in terms of the:

• area;
• type of the property;
• associated rights of way; 
• access to the property;
• the property’s interior; and 
• any fixtures and fittings included in the property. 

The property description must be accurate so you know what you are leasing and maintaining.

If you need help with leasing property for your business, our leasing lawyers can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. Call us today on 0808 196 8584 or visit our membership page.

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