Jurisdiction(s):
United Kingdom

Related legal acts

Key definition

Rack rent definition

What does Rack rent mean? In legal practice, rack rent describes the full open‑market annual rent for a property — the rent a willing landlord and tenant would agree on ordinary commercial terms. It is a descriptive expression rather than a statutory term, with its meaning drawn from valuation practice and case law, and used consistently across England & Wales, Scotland, Northern Ireland and Ireland. Key features are that it reflects current market value, excludes any element of premium, and is not discounted for unusual concessions. In valuation and rent review contexts, it is commonly assessed by reference to comparables and, depending on the agreed assumptions,...

Commercial lease alterations: negotiating prohibited and permitted works, consents, structural issues, reinstatement, rights outside the demise, telecoms wayleaves and clause interactions (England and Wales)

Published by a LexisNexis Property expert

Practice notes

Negotiation Guide

This Negotiation Guide sits within the Practical lease negotiation collection. See also Practice Note: New starter guide—entering into new commercial leases.

An alterations clause sets out how far (if at all) a tenant may undertake alterations to the demised premises. Contemporary commercial leases usually separate alterations into:

prohibited alterations
alterations allowed with the landlord’s consent
alterations allowed without the landlord’s consent

If, unusually, the lease contains no alteration restrictions, the tenant may carry out any alterations to the demised premises.

More often, commercial leases impose a general ban on alterations, with carve-outs for defined categories of works (eg internal non-structural changes) that may proceed either with, or without, the landlord’s prior consent. Drafting by exception in this manner helps to minimise confusion and reduce the risk of future disputes.

The scope of permitted alterations—and any conditions attached to them—is shaped by the nature of the premises, the duration of the lease and the landlord’s plans for the premises...

To view the latest version of this document and thousands of others like it, sign-in with LexisNexis or register for a free trial.

Web page updated on 21/05/2026

Popular documents

Using the Judicial College Guidelines to assess general damages in personal injury claims

When evaluating a general damages claim, the practitioner ought initially to refer to the Judicial College Guidelines (JCG)...

Tomlin orders in England and Wales: CPR guidance on drafting, confidentiality, approval, variation, enforcement, limitation, CCA issues, court-specific requirements, sample wording and precedents

This Practice Note This Practice Note reviews mechanisms used in settling litigation. A Tomlin order consists of a consent order paired with a schedule. It operates to stay proceedings on terms that have been agreed. The provisions contained in the schedule may remain confidential. This Practice Note describes the scope of confidentiality attaching to the schedule and sets out how it differs from a standard consent order. Sample wording for a Tomlin order is included, alongside links to precedents, as well as guidance on court approval. It also addresses varying, setting aside and enforcing a Tomlin order, including the considerations the court will take into account when handling applications for each. Further guidance is provided on interpreting and applying the relevant provisions of the CPR; however, some courts and divisions impose very specific requirements for both drafting and approval, and for approaching the schedule and confidentiality issues. Accordingly, you must consider the particular rules and court guide provisions in the forum where your claim is proceeding when drawing up the Tomlin order...

Precedent: Deed of Surrender of Lease with Optional Premium, Settlement and Release, Landlord, Mortgagee and Guarantor Consents, Reimbursement and HM Land Registry Provisions (England and Wales)

Date [ date ] Parties [ name of Landlord ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Landlord) [ name of Tenant ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Tenant) [ [ name of Guarantor ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Guarantor) ] [ [ name of Mortgagee ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Mortgagee) ] Definitions Within this Deed, the terms below shall be interpreted as follows: [ Annual Rent • the annual sum reserved under the Lease; ] [ Insurance Rent • the Tenant’s share of the Landlord’s costs of insuring the Property (as set out in the Lease); ] Lease • the lease of the Property dated [ date ], entered into between (1) [ the Landlord OR [ name ...

Precedent Statutory Declaration: Standard Wording under the Statutory Declarations Act 1835

I, [ name ], of [ address ], solemnly and sincerely state that: [ Matters to be verified, set out in numbered paragraphs ] I make this solemn statement in good conscience, believing it to be true, and pursuant to the provisions of the Statutory Declarations Act 1835. DECLARED at [ details ] this [ day ] day of [ month and year ] Before me ................................................................................ [ signature of the person before whom the declaration is made ] A [ commissioner for oaths OR [ solicitor OR [ insert other qualification ] ] authorised to administer oaths ]...