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Written by Brad Askew
Legal Tech Founder
Civil & Commercial Law background · Founder of LegalDocuments.co.uk
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Updated April 2026 · England & Wales
BA
Written by Brad Askew Legal Tech Founder
Civil & Commercial Law background · Founder of LegalDocuments.co.uk
Updated May 2026
·
England & Wales
If you're a business looking to take space in a building that hasn't been built yet, or a developer trying to line up tenants before breaking ground, an agreement for lease is often the mechanism that makes the deal work. It sits in the gap between a handshake and a signed lease, giving both sides contractual certainty while specific things (planning, construction, fit-out, licences) are still being worked out.
Done well, it gives the incoming tenant a reserved spot on agreed terms and gives the landlord a committed occupier they can point to when talking to funders. Done badly, it creates arguments about what 'practical completion' means and who pays for what if timelines slip.
This guide walks through how these agreements work in England and Wales, what tends to go in them, and the points where parties most often get caught out.
What this document is
An agreement for lease is a contract that commits two parties to enter into a lease at a future date, usually once certain conditions have been met. It is not the lease itself. Until the conditions are satisfied and the lease is formally completed, the tenant has no right to go in and occupy the premises.
What they do have is a legally binding promise from the landlord that a lease on agreed terms will be granted when the trigger events happen. The form of the lease is normally annexed to the agreement so there is no ambiguity about what will eventually be signed.
These arrangements are common where a landlord is redeveloping a site, refurbishing an existing building, or waiting for an outgoing tenant to vacate. They also crop up where planning permission, superior landlord consent, or a change of use is still outstanding.
Because the obligations are reciprocal, both sides benefit from knowing where they stand well before the keys physically change hands.
How to use this document
01
Agree the commercial terms first. Before drafting starts, both sides need to settle rent, term length, break rights, rent-free periods, service charge treatment, repair obligations and any tenant incentives. Getting these nailed down in a heads of terms document saves considerable legal cost and avoids drafting the same clause three times. 2. **Draft the lease and annex it to the agreement.** The lease that will eventually be completed should be prepared in agreed form and attached as a schedule to the agreement for lease. This means nobody can argue later about what terms apply. Any side letters, rent deposit deeds or guarantor documents should also be in agreed form and attached. 3. **Identify and draft the conditions.** The agreement needs to set out clearly what has to happen before completion is triggered. This might be practical completion of works to a defined specification, the grant of planning permission, vacant possession from an existing occupier, or superior landlord consent. Each condition needs a definition, a longstop date and a mechanism for what happens if it fails. 4. **Deal with construction and access issues.** If the landlord is building or refurbishing, the agreement typically includes a works specification, an inspection regime, a snagging process and a certificate mechanism confirming when practical completion has been achieved. Tenants will often want rights of early access to carry out their own fit-out before the lease formally starts. 5. **Complete the lease when conditions are met.** Once the trigger events have occurred and any certificates issued, the parties complete the lease on the agreed form. The term then runs from the completion date (or another agreed date), and the agreement for lease falls away, having done its job.
Common questions
QHow is an agreement for lease different from the lease itself?
An agreement for lease is a contract to grant a lease in the future once agreed conditions are satisfied. It does not give the tenant the right to occupy or any interest in the land yet. The lease, once completed, is the document that creates the actual tenancy and the right to possession. Think of the agreement as the commitment and the lease as the delivery.
QCan either party pull out of an agreement for lease?
Generally no, not unilaterally. Once signed, both parties are contractually bound to complete the lease when the conditions are met. The agreement will usually include specific circumstances where one side can walk away, such as a longstop date passing without conditions being satisfied, or a material breach by the other party. Outside those defined exits, pulling out can expose the departing party to damages claims.
QWhat happens if the developer's works are delayed?
Most agreements include a longstop date: a deadline by which the conditions (usually practical completion) must be met. If the date passes, one or both parties typically get the right to terminate. Some agreements allow extensions for force majeure or tenant-caused delay. If you're the tenant, pay close attention to how the longstop is calculated, because a vague definition of practical completion can be used to extend things indefinitely.
QDo I need to register an agreement for lease at the Land Registry?
An agreement for lease is capable of being protected as a notice on the landlord's registered title, which prevents the landlord from selling the property free of the agreement. Whether to register often depends on commercial sensitivity and the length of time before completion. Most tenants taking a material commitment will want some form of protection so that a third-party buyer takes subject to their rights.
QShould the rent be fixed or reviewed before the lease starts?
The starting rent is usually fixed when the agreement is signed, which gives the tenant certainty. However, if there's a long gap between signing and lease completion, landlords sometimes push for an indexation mechanism or a market review at completion. This is a commercial negotiation point. Tenants taking pre-let space in a rising market tend to prefer fixed, while landlords in the same market prefer a review.
QWhat are conditions precedent and why do they matter?
Conditions precedent are the events that must occur before the parties are obliged to complete the lease. Common examples are planning permission, practical completion of works, or removal of an existing tenant. They matter because they define when the lease actually happens, and failure of a condition usually triggers termination rights. Drafting them precisely (with clear tests and deadlines) is one of the most important parts of the agreement.
QCan a tenant start fit-out works before the lease is completed?
Often yes, but it needs to be expressly permitted. Early access is typically granted under a licence attached to the agreement, not under the lease itself. The licence will cover insurance, health and safety responsibilities, access restrictions and what happens if the lease never actually completes. Tenants spending significant sums on fit-out should take care that they're not left exposed if the deal falls through.
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Brad Askew Legal Tech Founder
Brad has a background in civil and commercial law and founded LegalDocuments.co.uk to make clear, reliable legal information accessible to everyone. This site is not a law firm and does not provide regulated legal advice.
Legal disclaimer
This article is for general information only and does not constitute legal advice. We are not solicitors. For advice on your specific situation, please consult a qualified solicitor.
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