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Sublease Agreement - Commercial Lease Fill out the template

Sublease Agreement - Commercial Lease

Last revision
Last revision 01/06/2023
Formats Word and PDF
Size 6 to 9 pages
Rating 4.5 - 1 vote
Fill out the template

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Last revisionLast revision: 01/06/2023

FormatsAvailable formats: Word and PDF

SizeSize: 6 to 9 pages

Option: Help from a lawyer

Rating: 4.5 - 1 vote

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Sublease Agreement - Commercial Lease

A Commercial Sublease Agreement allows the Tenant of a commercial property with an existing commercial lease, to further grant the rights of tenancy to a new individual or company, called the Subtenant, over all or part of the commercial property. A commercial sublease can help a Tenant reduce the costs it incurs in relation to the commercial property, as the Subtenant bears some of the rental responsibility for the property. A commercial sublease can also be useful where the commercial property is too big for the Tenant to use and a portion of it remains available. Before a commercial property can be subleased, the Landlord (who is usually the owner of the commercial property) has to agree to the subleasing. When this happens, the Tenant then becomes regarded as the Sublandlord based on the newly formed relationship with the Subtenant.

This template can be used to create such a commercial sublease agreement. This Agreement can also be used when the original tenant will not be occupying the commercial property for a period of time or for the remainder of the term of the original lease even though it remains listed as the Tenant of the commercial property under the Original Lease agreement. This sublease agreement makes provision for the Subtenant to pay rent to the Sublandlord because the sublease agreement is between the two of them and it is the Sublandlord who is transferring its rights of tenancy to the Subtenant.

If the Tenant wishes to completely transfer its rights over the commercial property to another party and stop being a Tenant of the property, then a Deed of Assignment of Lease should be used instead. The major difference is that while under a Sublease Agreement the Tenant remains in the tenancy of the commercial property, under an Assignment of Lease the Tenant ceases to be in the tenancy of the property and completely transfers tenancy rights to another party.

A Sublease Agreement is a legally binding contract between all the interested parties, including the Tenant (i.e. Sublandlord), the Subtenant and the Landlord (i.e. the Owner of the commercial property). Before a commercial property can be sublet, the landlord's consent has to be gotten first. A Landlord's Consent to Sublet a commercial property can be purchased separately among the list of documents on our website.

This Sublease Agreement can only be used in the jurisdiction of England and Wales where the commercial property will be located.


How to use this document

This Sublease Agreement allows the user to input all of the required rights and responsibilities that are necessary to sublease the commercial property to a Subtenant. The document allows a user to describe the commercial property, how rent payments will be collected, the frequency of rent payments, whether a deposit is to be paid by the Subtenant, whether the Subtenant will have to take insurance for the commercial property among other important details. Additionally, this document provides the option for where the Landlord's consent is attached to this Sublease Agreement. If the Landlord's consent is not included in this agreement but in a separate document, then a Landlord's Consent Form for a Commercial Sublease should be used to show the Landlord's consent.

If the agreement will be executed in counterparts, then two copies should be printed and signed by the relevant parties. The Sublandlord and the Subtenant should then keep a copy each for themselves.

As this Sublease Agreement relates to an interest in land, it is required to be executed as a deed. This means that it must be in writing and must be signed in the presence of a witness. If the party is a company, instead of a witness, it can be signed by two directors or a director and the company secretary.


Applicable Law

Insolvency Act 1986

Law of Property Act 1925

Landlord and Tenant Act 1954

Law of Property (Miscellaneous Provisions) Act 1994


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