If you agree a fixed term, you may have to meet all the obligations including paying rent and carrying out repairs until the lease ends, even if you move out of the premises or your business fails.

You may be required to personally guarantee the obligations for the term of the lease and, if your business fails, you may have to pay the rent or repair the building from your personal assets.

Rent is payable at the agreed figure (usually in advance) regardless of your trading circumstances. Failure to pay rent or any other charges stated in the lease at the agreed time can result in action by the landlord to recover the debt. This could result in court action, bailiffs or bankruptcy and the loss of your lease.

There will be periodic rent reviews unless the lease is short. If your lease imposes the upward only method, your rent cannot fall regardless of the current market rental value.

The ordinary obligation to repair the property can require you to carry out or pay for all necessary repairs, even if the disrepair dates from before you sign the lease. To avoid this, special provisions can be inserted in the lease which limit your obligation to maintaining the property in its initial condition, and a proper schedule of condition should then be attached before the lease is signed.

This is only possible if it is allowed by the lease. It may be by subletting or by assignment (selling the lease) to a tenant acceptable to the landlord. Some leases make the original tenant responsible if a subsequent tenant (assignee) fails to meet the obligations of the lease. The original tenant always remains liable for payments when the lease is sublet.