Internal repairing lease
Explore how we can help businesses with their commercial lease requirements.
Contact our teamAn internal repairing lease is a specific type of commercial lease where the tenant is only responsible for the upkeep and maintenance of the interior parts of the property.
This type of lease can be highly appealing for tenants who prefer limited maintenance obligations, while landlords retain responsibility for external elements, such as the roof and structure. At Moore Barlow, we help clients navigate internal repairing leases, ensuring the terms are clear, fair, and aligned with their business or investment objectives.
Whether you are a landlord seeking to protect the external integrity of your building, or a tenant looking to focus only on the interior maintenance, an internal repairing lease offers a clear division of responsibility. However, it’s essential to ensure that these obligations are correctly outlined to avoid any disputes.
What is an internal repairing lease?
An internal repairing lease is an agreement where the tenant is responsible for maintaining and repairing only the interior parts of the property, such as walls, floors, and fixtures. The landlord, on the other hand, retains responsibility for the building’s external structure, including the roof, windows, and foundations. This arrangement is common in multi-tenant buildings, where several businesses occupy different units but share external areas. In such a situation, a landlord may be able to recover their costs for exterior obligations from the tenants via a service charge, however, each tenant’s service charge would reflect their percentage share of the floor space of the building as a whole.
The benefit of this type of lease is that tenants have narrower liability and are not burdened with the cost of major repairs to the building’s exterior, which can be unpredictable and expensive. However, they are still required to maintain the condition of the interior, ensuring that it remains fit for business use.
Richard Hughes
Partner | Commercial Property, Real Estate, Real Estate Finance
How Moore Barlow can assist with internal repairing leases
At Moore Barlow, we ensure that your internal repairing lease is meticulously crafted to suit the needs of both tenant and landlord. Whether you are looking to lease a retail space, office, or industrial unit, we ensure the terms of the lease are clear about who is responsible for each part of the property.
We define the scope of interior repairs the tenant is responsible for, ensuring there are no unexpected liabilities. We also ensure maintenance of shared spaces is addressed if the lease is part of a larger property, such as a commercial building with multiple units, and advise landlords on external repair obligations, making sure they are protected against unexpected repair costs that fall outside the scope of the tenant’s duties.
Our legal team works to ensure that both parties understand and agree to the division of responsibilities, avoiding potential conflicts and setting the foundation for a successful lease term.
Why choose us for your internal repairing lease?
When it comes to internal repairing leases, Moore Barlow offers a unique blend of commercial property expertise and client-focused service. We recognise the importance of clearly defining repair and maintenance responsibilities, ensuring that the lease is not only legally robust but also fair to both parties. With our guidance, you can be confident that your lease agreement is structured in a way that avoids ambiguity and protects your interests.
We take a proactive approach, addressing potential issues before they arise. Whether you’re a landlord seeking to retain control of the building’s exterior or a tenant looking for clarity on your interior obligations, our team works to deliver a seamless, stress-free process.
Who benefits from internal repairing leases?
Internal repairing leases are particularly beneficial for tenants who prefer to limit their responsibility to the interior space and facilities, such as retail stores or office tenants in multi-unit buildings. This type of lease is also ideal for landlords who want to maintain control over the building’s external appearance and structure, ensuring that the property remains in good condition for all tenants.
Whether you’re a small business owner looking to secure a flexible lease, or a landlord managing a portfolio of commercial properties, Moore Barlow offers tailored solutions that align with your goals. Our legal team ensures that your internal repairing lease is crafted to meet your specific needs, whether you are seeking clarity on obligations or aiming to protect your investment.
What is the difference between IRI and FRI lease?
The difference between Internal Repairing and Insuring (IRI) and Full Repairing and Insuring (FRI) leases lies in the scope of the tenant’s repair responsibilities.
- IRI Lease (Internal Repairing and Insuring): In an IRI lease, the tenant is only responsible for maintaining and repairing the interior of the property. The landlord remains responsible for external and structural repairs, such as the roof, walls, and foundations. The tenant may still be required to cover the building’s insurance, depending on the terms.
- FRI Lease (Full Repairing and Insuring): In an FRI lease, the tenant is responsible for both internal and external repairs, as well as structural maintenance. Additionally, the tenant usually bears the cost of insuring the property. This makes the tenant fully responsible for almost all maintenance and repair obligations.
In short, an IRI lease limits the tenant’s responsibilities to the interior, while an FRI lease makes the tenant responsible for the entire property, both inside and out.
Meet our team of commercial property solicitors
Jo Farr
Partner | Commercial Property, Real Estate, Land Development, Real Estate Finance
Richard Hughes
Partner | Commercial Property, Real Estate, Real Estate Finance
Julian Parkes
Partner | Commercial Property, Real Estate, Landed Estates and Farming
Callum Leary
Partner | Commercial Property, Real Estate, Real Estate Finance
Nellie van der Lande
Senior Associate | Commercial Property, Real Estate Finance, Rural Services
Sam Ho
Senior Associate | Commercial Property, Real Estate, Real Estate Finance
Sharon Mays
Senior Associate | Commercial Property, Real Estate, Land Development, Real Estate Finance
Nicola Donnelly
Associate | Real Estate, Plot Sales, Residential Property
Fiona Hampton
Chartered Legal Executive | Commercial Property, Land Development, Plot Sales
Helen Archibald
Consultant | Commercial Property, Real Estate, Land Development
Janice Taylor
Conveyancing Executive | Real Estate, Plot Sales, Residential Property
Contact our team
If you’re considering an internal repairing lease or need advice on an existing one, Moore Barlow’s commercial property experts are ready to help.
With our deep experience in lease negotiations and commercial property law, we’ll ensure that your lease is structured for success. Contact us today to discuss your leasing needs and let us provide the legal support you need to move forward with confidence.
Contact our commercial property team
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