Business Lease Cost Calculator
Last updated: April 2026
Lease Inputs
Effective monthly rent
£2,375.00
After rent-free benefit
Total occupancy cost
£227,500.00
Over 5 years
Cost Breakdown
Rent-Free Saving
Your 3-month rent-free period saves £7,500.00 in rent and reduces your effective annual rent from £30,000.00 to £28,500.00.
Deposit Note
Your deposit of £7,500.00 (3 months rent) is held by the landlord for the duration of the lease and returned at the end subject to dilapidations.
What is a rent-free period?
A rent-free period is a concession from the landlord where you pay no rent for an agreed number of months at the start of the lease, typically to allow time for fit-out. While you pay no rent during this period, other costs such as business rates and service charges often still apply.
What is an upward-only rent review?
Most commercial leases in the UK include upward-only rent review clauses, meaning rent can only increase at review dates, never decrease. Reviews typically occur every 5 years and are based on open market rental value at the time of review. This means your rent is likely to increase over the lease term.
What is a service charge?
A service charge is a payment made to the landlord to cover the cost of maintaining and managing the building and common areas. It is separate from rent and is typically variable, increasing with actual costs. Always review the service charge history before signing a commercial lease.
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