Sublease Agreement - Commercial Lease - Template Form
✓ Valid in United Kingdom
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COMMERCIAL SUBLEASE AGREEMENT
This Sublease is dated ________
PARTIES
________, a company incorporated and registered in England and Wales with Company Number ________ whose registered office address is at:
________
(the Sublandlord).
________, a company incorporated and registered in England and Wales with Company Number ________ whose registered office address is at:
________
(the Subtenant).
BACKGROUND
A. This is an agreement (the "Sublease") to sublet the commercial real property by the terms contained below.
B. The original lease (the "Original Lease") dated ________ is between ________ (the "Landlord") and the Sublandlord with respect to the following property:
________
(the "Subleased Premises").
C. The Subtenant agrees to be obliged with specified obligations of the Original Lease.
AGREED TERMS
1. Definitions
This sublease uses the following definitions:
"Act" refers to any act of Parliament and any delegated law made under it.
"Business Day" refers to a day (other than a Saturday, Sunday or public holiday) on which banks are usually open for business in England and Wales.
"Consent" refers to the Landlord's consent to sublease the property, granted on ________.
"Notice" refers to any notice, notification or request given or made under this Sublease.
"Original Lease" refers to the existing lease existing between the Sublandlord and the Landlord dated ________.
"Permitted Use" refers to any use which the Sublandlord or the Landlord has consented to or any use allowed in the Original Lease.
"Rent Commencement Date" refers to ________.
"Sublease" refers to this Sublease created by this agreement.
"Subleased Premises" refers to the land and building known as:
________.
"Term" refers to the period of this Sublease.
"Term Start Date" refers to the first day of the Tern, which is ________.
"Term End Date" refers to the last day of the Term, which is ________.
2. SUBLEASED PREMISES
The Sublandlord leases all of the Subleased Premises to the Subtenant (the "Subleased Premises").
3. RENT
(a). The Subtenant must pay the same amount of rent as stipulated under the Original Lease, which is the sum of £________ (________) Weekly. The Rent shall be paid on a weekly basis each Monday of the new week.
(b). The rent shall become payable from the Rent Commencement Date.
(c). The Subtenant shall pay the Rent by way of bank transfer to the following account details:
________
(d). Except where it is required by law to do so, the Subtenant is not permitted to make any legal or equitable deduction, set-off or counterclaim from any payment that is due under this Sublease.
4. TERM
(a). The Sublandlord leases the Subleased Premises to the Subtenant for a term which shall start on the Term Start Date at ________ and ending on the Term End Date at ________.
(b). This Sublease and its provisions shall be subject to the terms and restrictions contained in the Original Lease.
5. PERMITTED USE OF PREMISES
(a). The Subtenant, its agents and its employees are not allowed to use the Subleased Premises in a manner other than for the Permitted Use.
(b). Additionally, the Subtenant agrees to:
(I). adhere to all other applicable provisions contained in the Original Lease; and
(II). avoid doing anything that would constitute a violation of any part or condition of the Original Lease.
6. UTILITIES
(a). During the Term, the Subtenant will take over payments for utilities and other charges connected with the Premises which would otherwise have been paid by the Sublandlord under the Original Lease.
(b). The Rent shall include payments for utilities and other similar charges for the Subleased Premises.
7. MAINTENANCE AND REPAIRS
The Subtenant must:
(a). keep the Subleased Premises in good and substantial repair and condition and clean and tidy from the beginning of the Term until its end;
(b). report all general maintenance issues and needed repairs to the Sublandlord and the Landlord immediately as they arise.
8. DAMAGE DEPOSIT
(a). The Subtenant agrees to pay the sum of £________ (________) to the Sublandlord as cover for damages to the Subleased Premises and cleaning.
(b). In the event that the Subtenant returns the Subleased Premises and its contents in the same condition as they were received by the Subtenant, reasonable wear and tear expected, the Sublandlord agrees to refund the Deposit to the Subtenant, or the amount that remains from the Deposit.
(c). Any refund from the Sublandlord will be:
(I). at the end of the Term; or
(II). within 30 days after the end of the Term.
(d). The Sublandlord will explain, in writing to the Subtenant, any reason for retaining a portion of the Deposit within 30 days.
9. INSURANCE
(a). The Subtenant will bear the cost of insurance which shall be similar to that required of the Sublandlord under the Original Lease. The Sublandlord and the Landlord shall be included, by the Subtenant, as additional insured parties on all insurance policies.
(b). Upon the taking out or renewal of such insurance, the Subtenant will give proof of the insurance to the Sublandlord and the Landlord.
10. ALTERATIONS AND IMPROVEMENTS
The Subtenant is not permitted to make any alterations, decorations or improvements to the Premises without the express written consent of the Landlord.
11. TAX PAYMENTS
(a). The subtenant shall bear the costs of any tax, business rates or other similar charges that may be assessed against:
(I). the Subtenant's business;
(II). the Subleased Premises; and
(III). any property belonging to the Subtenant that is on or about the Subleased Premises.
(b). The Subtenant must make sure to avoid any late fee assessments or penalties that may affect the Subleased Premises.
12. EVENTS OF DEFAULT
If any of the following Events of Default occurs through the fault of the Subtenant, then it will be in breach of its obligations under this Sublease:
(a). Where the Subtenant fails to pay the full or a part of the Rent as at when due or within any grace period that is given or agreed.
(b). Where the Subtenant fails to perform any of the obligations imposed on it under this Sublease or under the Original Lease.
(c). Where the Subtenant voluntarily or involuntarily declares insolvency, bankruptcy, winding up, liquidation, dissolution, or a receiver is or will be appointed for the affairs of the Subtenant or its business.
(d). Where the Subtenant abandons the Subleased Premises or any part of the Subleased Premises.
(e). Where the Subtenant uses or permits the use of the Subleased Premises for any unpermitted or illegal purposes.
(f). Where the Subtenant fails to commence, diligently pursue and complete work that it is required to perform on the Subleased Premises under this Sublease.
(g). Where through the negligence of the Subtenant or the negligence of its agents or employees, the whole or part of the Subleased Premises becomes completely or partially damaged by fire or any other casualty.
(h). Any other event of default provided in the Original Lease or the Act.
13. REMEDIES ON DEFAULT
(a).
Upon the occurrence of any Event of Default, the Sublandlord shall be entitled to exercise any one or more of the remedies set out in this clause, in addition to any other remedies available to it under the Original Lease, the Act or otherwise at law.
(b).
The Sublandlord may, by giving written notice to the Subtenant, re-enter the Subleased Premises or any part of them in the name of the whole and thereupon the Term shall absolutely determine, but without prejudice to any right of action or remedy of the Sublandlord in respect of any antecedent breach by the Subtenant of any of its obligations under this Sublease.
(c).
The Sublandlord may recover from the Subtenant all arrears of Rent and any other sums due under this Sublease, together with interest on such sums at the rate of 4% per annum above the base lending rate of the Sublandlord's bank from time to time, calculated from the date on which payment fell due until the date of actual payment.
(d).
The Sublandlord may perform any obligation which the Subtenant has failed to perform and recover from the Subtenant, as Additional Rent, all costs and expenses reasonably incurred by the Sublandlord in doing so.
(e).
The Subtenant shall indemnify the Sublandlord against all losses, claims, damages, costs and expenses (including legal fees) suffered or incurred by the Sublandlord as a result of or in connection with any Event of Default by the Subtenant.
(f). No failure or delay by the Sublandlord in exercising any right or remedy under this Sublease shall operate as a waiver of that or any other right or remedy, nor shall any single or partial exercise of any right or remedy prevent the further exercise of that or any other right or remedy.
14. SURRENDER OF PREMISES
(a). Upon the expiration of the Term of this Sublease, the Subtenant will:
(I). quit the occupancy of the Subleased Premises; and
(II). give back the Subleased Premises, to the Landlord, in as good a condition and state as they were at the beginning of this Sublease. Reasonable use and wear and damages by the elements are expected.
(b). Upon the expiration of the Term of this Sublease, the Subtenant must have removed all the Subtenant's and trade fixtures and loose contents from the Subleases Premises.
15. ASSIGNMENT AND SUBLETTING
The Subtenant must not assign, further underlet or transfer the whole or any part of the Premises without the express written consent of the Sublandlord and the Landlord.
16. SERVICE OF NOTICES
(a). Any notice to be served by the Subtenant in connection with this Sublease must be in writing and sent by pre-paid first class post or special delivery to the following address:
________
(b). any notice to be served by the Sublandlord in connection with this Sublease must be in writing and sent by pre-paid first class post or special delivery to the following address:
________
(c). Any Notice given will be deemed to have been served on the second Business Day after the date of posting if:
(I). it is sent by pre-paid first class post or special delivery; or
(II). at the time the Notice is delivered to or left at the recipient's address if delivered to or left at that address.
(d). A Notice that is deemed to be served on a day that is not a Business Day or after 5.00pm on a Business Day will be deemed to be served at 9.00am in the immediately following Business Day.
(e). A Notice served by fax or e-mail will not be a valid form of service under this Sublease.
17. ORIGINAL LEASE
(a). Except where this Sublease expressly provides otherwise, the Subtenant will perform all the Sublandlord's duties and obligations under the Original Lease from the Term Start Date until the Term End Date.
(b). Except where this Sublease expressly provides otherwise, the Sublandlord's rights and remedies owing from the Subtenant shall be the same as the Landlord has with respect to the Sublandlord under the Original Lease.
(c). The conditions and terms may only be modified through an agreement in writing, which shall be signed by all parties to the Sublease or their respective successors in interest.
(d). This Sublease incorporates and is subject to the Original Lease. The Subtenant has been or will later be provided with the Original Lease.
18. SEVERANCE
19. JURISDICTION
This Sublease and any non-contractual obligations arising out of or in connection with it will be governed by the laws of England and Wales, and the courts of England and Wales shall have exclusive jurisdiction to decide any dispute arising out of or in connection with this Sublease, including in relation to any non-contractual obligations.
20. GENERAL
(a). In the event of a legal action arising in connection with this Sublease, the losing party shall pay the costs of the losing party which shall include legal representative's fees and court costs fixed by the court.
(b). The Sublandlord shall have the right to enter the Subleased Premises, after giving 24 hours notice, for any of the following reasons:
(I). for the inspection of the Subleased Premises;
(II). for the maintenance of the Subleased Premises; or
(III). for the performance of the Sublandlord's specific obligation to repair the property.
(c). The obligations and benefits of this Sublease shall extend to and be binding on the respective heirs, executors, administrators, successors and assigns, as the case may be, of this Sublease. All covenants are to be interpreted as being conditions of this Sublease.
(d). Where this Sublease provides that the Subtenant is required to pay any additional sums to money to the Sublandlord, such amount will be deemed to be Additional Rent, recoverable as rental arrears by the Sublandlord.
(e). This Sublease may be executed by the parties signing and exchanging the signed copies for the other party to affix their signature.
(f). Time is of the essence in this Sublease.
(g). The relationship between the Subtenant and the Sublandlord is not one of ownership, subsidiary agency, partnership or joint venture. Both parties are wholly independent of each other.
(h). This Sublease shall become binding upon all parties when it has been signed and exchanged with the other party and the Landlord has consented to this Sublease.
Executed as a deed by the Sublandlord acting by:
________, ________
______________________
________, ________
______________________
________
(the Sublandlord)
Executed as a deed by the Subtenant acting by:
________, ________
______________________
________, ________
______________________
________
(the Subtenant)
Executed as a deed by the Guarantor acting by:
________, ________
______________________
________, ________
________
(the Guarantor)
Fields you complete are inserted into the document live. This template is general guidance only — not legal advice.