Jurisdiction(s):
United Kingdom

Underletting in leases of part: pro-tenant negotiation guide, preferred and fallback clauses (England and Wales)

Published by a LexisNexis Property expert

Practice notes

Introduction

This playbook sets out guidance for negotiating the terms of an underletting clause for a lease of part of a larger building, such as an office block or a shopping centre (or a comparable retail setting), with the aim of making those terms more favourable for the tenant (‘tenant-friendly’ or ‘pro-tenant’). It features preferred provisions, fallback wording, and drafting notes that support the prospective tenant’s position. Lawyers acting for prospective tenants and in-house counsel can use this playbook and should tailor it to address client-specific matters to ensure the client’s interests are fully protected. The level of risk indicated may vary by client. Note that the playbook does not provide drafting for situations where the tenant has a substantial negotiating advantage (for example, where the tenant is an anchor tenant). This document forms part of a collection of pro-tenant playbooks. For a list of the other playbooks in the collection, along with additional content concerning commercial tenancies, see the Commercial tenancies subtopic...

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Web page updated on 22/05/2026

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