Sub-Lease Agreement

Our Sub-Lease Agreement template:

  • UK expert-drafted template
  • Easy to edit with full guidance notes
  • Value for money
  • Robust legal protection
Money Back Guarantee

How Does It Work?

  • 1. Download
  • 2. Edit
  • 3. Print
  • 4. Sign

Our Sub-Lease Agreement template should be used by a landlord (which is itself a tenant of a lease of business premises, i.e. the headlease) when sub-letting the whole of the commercial unit to a tenant. It can be customised to suit your individual requirements and has optional clauses, so it will work whether there is or is not:

1. a guarantor of the lease; or

2. a right to renew this sub-lease when it expires (i.e. “security of tenure”).

This type of Sub-lease Agreement puts in place a robust and detailed agreement that is suitable for both short-term and long-term sub-letting of commercial property. You can use it for property in England and Wales, but not Scotland.

The template has been drafted by David, our co-founder and lawyer of twenty years. This ensures that you can rely on the document being up-to-date and legally comprehensive. Our detailed guidance notes (free with the template) offer a clause-by-clause explanation of the agreement and make completing the final document simple and fast. A copy of the guidance notes are available here: guide to this sub-lease agreement template.

Accompanying our template you will also receive a free copy of the prescribed form of words for contracting out of the right for the tenant to apply for a new lease on expiry under the Landlord & Tenant Act 1954 (the “security of tenure” provisions). These are also available for free separately from our website – just click the above link.  The guide to this template also explains about the security of tenure provisions.

Using our Sub-Lease Agreement template

This template for a Sub-lease Agreement can be downloaded in Word format at the click of a button once purchased. It can then be easily edited by you to suit your own needs.

We provide a full money-back guarantee if you are not happy with your template document for any reason.

Once purchased, the template can be reused as many times as you want for creating further sub-leases at no further cost. We keep our templates under review to ensure they are up-to-date. Whenever we update a template that you have bought, we will notify you by email and you will get a free updated template.

How and when to use our Sub-Lease Agreement template

This agreement is sometimes also known as a sub-letting, underlease or underletting agreement. If you are a tenant under a lease of commercial premises, you might find yourself no longer needing to use that space at some point. In this situation, if you can find a tenant willing to take it, you will need a sub-lease agreement with them. They would then be known as the sub-tenant. The sub-letting agreement would set out the rights and responsibilities that the sub-tenant has to adhere to – the majority would most likely be ones that are in the main lease. This means that the sub-tenant would become responsible for the relevant part of the monthly rent and also bound by the other relevant obligations that are in the main lease.

Our sub-lease agreement explains the terms of the new subletting in easy to understand terms, so that you can fill it out quickly.

You will most likely need to get the permission of the landlord to sub-let – you should check the terms of the main lease to see if this is the case. If so, you will also need a licence to sub-let – this is the document under which the landlord formally gives his permission for the sub-letting. Legalo have a licence to sub-let template available for you.

Even when you have a sub-lease agreement, as the original tenant, you are still responsible to the landlord for complying in full with the terms of the main lease with your landlord. If the new sub tenant is unable to meet their responsibilities under the sub-lease, it will still fall to you as the original tenant to fulfil them, e.g. maintaining the property as well as payment of the monthly rent. If you have to take over the rights and responsibilities because the sub tenant failed to meet them, you will have a claim against the sub-tenant for breach of the sub-lease agreement.

If you need the full batch of documents for the sub-letting of a lease, we offer 20% off when you buy them all at the same time using our discount package – click here for more details.

If you would like to see our other commercial property templates click on the link.