UK Terminology

Zone A is the most valuable front section used in shop rental zoning. ITZA means “in terms of Zone A”: deeper zones are converted to equivalent Zone A area. Apply the quoted £/sq ft Zone A rate to the appropriate ITZA area, not the total floor area. Zoning conventions vary; this atlas preserves each source’s stated basis, including CBRE’s 30 ft zones on specified streets.

Rent linked to an agreed proportion of the occupier’s turnover, sometimes with a base rent. Define the sales included, online sales attribution, returns, reporting and audit rights. Turnover is sales revenue, not profit.

A lease basis under which the tenant bears the agreed repair and insurance costs, directly or through landlord recovery. The landlord often arranges the building insurance. Check the demise, repairing covenant, schedule of condition and service charge: the initials alone do not define liability.

The tenant’s contribution to landlord-provided services and common parts under the lease. Review the budget, apportionment, exclusions, reconciliation and any cap; distinguish it from rent, insurance and business rates.

The principal commercial terms agreed before solicitors draft the lease, normally subject to contract. Record rent, incentives, term, breaks, reviews, repair, service charge and 1954 Act status. Identify any provisions intended to bind separately.

“Inside” means the business tenancy has security of tenure under Part II of the Landlord and Tenant Act 1954: statutory continuation and renewal rights, subject to the landlord’s statutory grounds of opposition. “Outside” usually means validly contracted out using the required warning notice and declaration procedure before commitment. There is then no statutory renewal right; check any contractual option.

A separate non-domestic property tax, usually paid by the occupier. Rateable value is not the rates bill or the passing rent. Estimate the bill using the relevant multiplier, reliefs and transitional arrangements. England’s 2026 rating list took effect on 1 April 2026; check the current assessment and eligibility rather than carrying forward last year’s bill.

Passing rent is the rent currently payable. Headline rent is the stated rent before adjusting for incentives. Net effective rent reflects incentives over an explicitly stated period and calculation basis. Specify rent-free periods, capital contributions and the treatment of breaks before comparing deals.

A review resets rent under the lease mechanism. A break can end the lease early if its notice and conditions are met. A renewal grants a new lease. These are different events; establish their dates and interaction.

Fit-out means preparing the premises for occupation. Dilapidations are breaches of lease obligations concerning the property’s condition, often addressed at lease expiry. Alienation covers dealings such as assignment and underletting; check consent requirements and guarantees.

Covenant strength concerns the tenant’s ability to meet its obligations, including the support of any guarantor. For investment comparisons, state the yield basis — for example net initial yield or equivalent yield — and the treatment of purchaser’s costs, incentives and rental growth.