End of a Commercial Property Lease? Key legal obligations for the Tenant
21 Jul 2025
Published in: Member News
Legal experts at Enoch Evans Solicitors guide you through the essential legal obligations you need to be aware of when navigating the end of a commercial property lease
Commercial Leases create legal obligations for a Landlord and a Tenant both during the term of the Lease and at its end.
A key element of a Lease are the provisions which govern what the Tenant is required to do at the end of the Lease, whether the Lease has been terminated early or whether the term has expired.
Most Leases will require a Tenant to return the property to the Landlord:
- in the condition required by the Lease - which is often in a good and substantial state of repair and condition.
- in good decorative condition.
- having removed any of the tenant’s fixtures and any additions or alterations made during the term.
- having removed any signage.
- in compliance with all other relevant terms of the lease.
If a Landlord thinks that the property has been vacated by the tenant and left in a state of disrepair and not in compliance with the terms of the Lease, it may instruct a building surveyor to inspect the property and compile a schedule of dilapidations which lists the breaches of the Tenant's obligations, what works the Tenant needs to do to remedy those breaches and how much that work is going to cost. In some cases, the likely expenditure for the works is significant and can run into thousands of pounds and can therefore be a nasty and unwanted shock for a Tenant.
Before a Tenant enters into a Lease it is vital that it has received the right legal advice in respect of its repair liability and what will be required of it at the end of the term. If a Tenant is taking on a property in a poor condition and they want to limit their repair obligations, then they should seek to agree with their Landlord that a schedule of condition limits the Tenant's repair obligation and that they do not have to return it to the Landlord in a better state than it was at the start of the Lease.
If you are proposing to let a Commercial Property and want advice as to your repairing liability or what will be required of you at the end of the Lease our Commercial Property team will be able to assist you.
If you are a Landlord wanting to make a dilapidation claim against your tenant or a tenant who wants advice in relation to dilapidations, our Property Litigation team will be able to help you navigate through this complex area of law.
To find out more about the Commercial Property services we offer please visit https://enochevans.co.uk/services-for-business/commercial-property/
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