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Commercial Lease Basics Every Business Owner Should Know

Break clauses, repairing obligations, service charges and rent reviews — the lease terms with the largest financial consequences.

22 June 2026 8 min read

Repairing obligations

A full repairing and insuring lease can make you responsible for the roof and structure. On an older building that is a significant contingent liability — commission a schedule of condition before signing to cap it.

Break clauses have conditions

Break clauses are frequently conditional on the rent being fully paid and the premises being handed back vacant and in repair. Failing any condition invalidates the break, and tenants lose this argument regularly.

Service charge caps

In multi-let buildings, ask for a service charge cap and the last three years of actual figures. An uncapped service charge is an open-ended cost you cannot forecast.

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