Lease Abstract: [Property, unit and tenant]
A short, structured summary of one commercial lease: the parties, the
premises, the term, the rent and how it changes, the options and their
notice deadlines, who repairs and pays for what, and the clauses that
limit what each side can do. Asset managers, property managers,
lenders, valuers and accountants read the abstract instead of the full
lease, so every entry cites the clause it comes from. Based on common
commercial leasing practice; it feeds lease accounting under IFRS 16
Leases or US GAAP ASC 842 (see finance/lease-accounting-memo).
Replace every [bracketed] value and every row marked Example. This
is a documentation format, not legal advice: the signed lease and its
later deeds govern, and statutory rights depend on the jurisdiction,
so check them with a qualified professional.
Document control
| Field | Value |
|---|
| Abstract ID | [LA-QPB-U101] |
| Property and unit | [Quelmont Park Building B, unit U-101, first floor] |
| Version | [1.0] |
| Status | [Draft / Checked / Approved] |
| Prepared by | [@name] |
| Checked against the lease by | [@name, ideally a second person or a lawyer] |
| Last updated | YYYY-MM-DD |
| Classification | [Confidential] |
Revision history
| Version | Date | Author | Change summary |
|---|
| 0.1 | YYYY-MM-DD | [@name] | First abstract from the signed lease |
| 1.0 | YYYY-MM-DD | [@name] | Example: Checked; side letter on rent-free period added |
1. Documents reviewed
| Ref | Document | Date | Notes |
|---|
| DOC-01 (Example) | Lease | 2022-03-18 | Signed counterpart held by the landlord's solicitor |
| DOC-02 (Example) | Side letter on rent-free period | 2022-03-18 | Personal to the original tenant |
| DOC-03 (Example) | Licence for alterations (mezzanine storage) | 2023-05-02 | Reinstatement required at lease end |
| DOC-04 (Example) | Rent deposit deed | 2022-03-18 | Deposit of 52,500 held in a separate account |
2. Parties and premises
| Item | Entry | Clause |
|---|
| Landlord | Example: Varrowby Property Fund (acting through its trustee) | Particulars |
| Tenant | Example: Fenwyn Print Studio | Particulars |
| Guarantor | Example: None | Particulars |
| Premises | Example: Unit U-101, first floor, 1,000 m2 net lettable area, internal surfaces only; structure and common parts excluded | 1.1, Schedule 1 |
| Rights granted | Example: Use of common parts, 12 car parking spaces, loading bay by booking | Schedule 2 |
| Permitted use | Example: Printing studio and ancillary offices | 1.1 |
3. Term and statutory status
| Item | Entry | Clause |
|---|
| Lease date | Example: 2022-03-18 | Particulars |
| Term start | Example: 2022-04-01 | Particulars |
| Term length | Example: 10 years | Particulars |
| Expiry | Example: 2032-03-31 | Particulars |
| Statutory renewal rights | [Jurisdiction and status, for example "excluded by agreement, notice and declaration dated YYYY-MM-DD"] | [Clause] |
| Holding over | [What happens if the tenant stays after expiry] | [Clause] |
4. Rent and payments
| Item | Entry | Clause |
|---|
| Initial rent | Example: 210,000 per year (210 per m2), exclusive of tax | Particulars |
| Payment | Example: Monthly in advance on the 1st (17,500 a month) | 3.1 |
| Rent-free period | Example: 6 months, 2022-04-01 to 2022-09-30 | DOC-02 |
| Rent review | Example: 2027-04-01, open market review, upward only | Schedule 4 |
| Review basis | Example: Hypothetical letting of the premises with vacant possession for a term equal to the original term, disregarding tenant's improvements | Schedule 4, para 2 |
| Interest on late payment | Example: 4% above the base rate of a named bank, from the due date | 3.4 |
| Service charge | Example: Fair proportion of building costs, budgeted at 23.81% (1,000 of 4,200 m2), quarterly on account | Schedule 5 |
| Insurance | Example: Landlord insures, tenant reimburses its share of the premium | 6 |
| Deposit | Example: 52,500 (3 months' rent), held in a separate account | DOC-04 |
5. Options and critical dates
| Event | Date | Notice | Notice deadline | Conditions | Clause | Owner |
|---|
| Rent review date (Example) | 2027-04-01 | Either party may start the review | None, review can start late | Upward only | Sch 4 | Asset manager |
| Tenant break (Example) | 2027-09-30 | Not less than 6 months' written notice | 2027-03-30 (conservative; ask a lawyer to confirm how the lease counts the period) | No material rent arrears, vacant possession on the break date | 9.1 | Asset manager |
| Lease expiry (Example) | 2032-03-31 | [Statutory notices if renewal rights apply] | [Per statute] | Reinstate mezzanine (DOC-03) | 1.1 | Asset manager |
6. Obligations
| Topic | Tenant | Landlord | Clause |
|---|
| Repair | Example: Keep the interior in good repair, no schedule of condition | Repair structure, roof and common parts, cost recovered through service charge | 5.1, 7.2 |
| Decoration | Example: Every 5 years and in the last year | Common parts | 5.3 |
| Alterations | Example: Non-structural with consent, not to be unreasonably withheld; no structural alterations | Consider requests | 5.6 |
| Alienation | Example: Assignment of the whole with consent; no subletting of part | Consider requests | 5.8 |
| Compliance with law | Example: Within the premises | Common parts and structure | 5.10 |
| Yielding up | Example: Return in repair, remove alterations if the landlord asks | Inspect and serve schedule of dilapidations | 5.14 |
7. Accounting and reporting inputs
| Input | Entry |
|---|
| Commencement date | Example: 2022-04-01 |
| Non-cancellable period | Example: to 2027-09-30 (first tenant break) |
| Options to note for the lease term judgement | Example: Tenant break 2027-09-30 |
| Variable payments | Example: Rent review to market, service charge, insurance |
| Incentives | Example: 6 months rent-free (105,000) |
8. Insurance, environmental and other clauses
| Topic | Entry | Clause |
|---|
| Rent suspension after damage | Example: Rent suspended for up to 3 years if insured damage makes the premises unfit | 6.4 |
| Energy performance | Example: Parties share energy data; no minimum rating clause | 8.2 |
| Landlord's right to redevelop | Example: None | |
| Exclusivity or restrictions | Example: None | |
9. Open points for review
| ID | Question | Raised by | Answer |
|---|
| LQ-01 (Example) | Does "material" arrears in the break condition include a disputed service charge balance? | [@name] | |
| LQ-02 (Example) | Does the mezzanine reinstatement duty in DOC-03 also apply if the tenant leaves on the 2027 break date? | [@name] | |
Standard and licence note
Based on common commercial leasing practice. IFRS 16 Leases (issued
January 2016 by the IASB, effective for periods beginning on or after
1 January 2019) and ASC 842 are named for orientation only; see
finance/lease-accounting-memo. The England and Wales example refers to
the Landlord and Tenant Act 1954, Part II. The text is original. Check
the current official texts and a qualified professional. Template
licence: MIT.