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Full Repair and Insure leases - what you need to know



Fri 13 October 2023 Full Repair and Insure leases - what you need to know

Full Repairing and Insuring Lease Solicitors

From a Landlord’s perspective, requiring a new tenant to take a commercial premises lease on a full repair and insuring (“FRI”) basis is usually the preferred option. Whether a tenant should or will accept is generally a matter strongly linked to the overall bargaining position between the parties, the length of the lease term (with longer leases the Landlord is likely to insist more) and how badly the tenant wants or needs the premises in question.

If you need legal advice on a full repair and insure lease, please do get in contact. We have a large number of specialist commercial property lawyers in many locations in England & Wales.

The risks to a tenant of agreeing an FRI lease  

The key and overriding risk is that the tenant will be taking on obligations to actually improve the condition of the premises. This does not just include items such as carpets, painting and windows, it will extend to things such as gas, water, electricity, heating and air conditioning, all of which can be very expensive.  Where the lease is of an entire building, the full repair obligation will include structural condition (roof, windows and many other areas).

Tips for tenants offered an FRI lease

The starting point is recognising that everything is negotiable. If the Landlord won’t budge on the principle that the lease must be full repair, options include :-

How we can help

We act for both Landlords and Tenants. For tenants, we will ensure that the Landlord and/or it’s agents or lawyers do not bully you into accepting that an FRI lease is completely standard. Based upon instructions and your negotiating position, we will ensure your position is protected as strongly as possible. Importantly, we will ensure you fully understand the possible risks and costs before you sign any lease agreement.


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