FRI Leases and Repairing Obligations: A Practical Guide for Tenants and Landlords

An FRI lease—short for Full Repairing and Insuring lease—places the cost of repairs and insurance with the tenant, so the landlord receives a clear rent. The label “FRI” is only a starting point: the real risk lies in the exact wording of repair, decoration, reinstatement, service media and statutory compliance clauses. This guide explains the essentials of FRI lease repairing obligations for commercial properties across London, Birmingham and Manchester, including how to limit exposure with schedules of condition, navigate Section 18(1), and plan for lease expiry.

What does “FRI” mean in practice?

Under an FRI structure, the tenant typically takes responsibility for the demised premises, which may extend to structural elements and building services depending on the drafting. Repairing obligations can require day-to-day upkeep, cyclical decoration, and sometimes reinstatement at lease end. For multi-let estates (common in London, Manchester and Birmingham city centres), alignment with the service charge regime is crucial to avoid double recovery.

Core elements of FRI lease repairing obligations

1) “Put and keep in repair” vs “keep in repair”

“Put and keep in repair” generally obliges a tenant to bring the premises up to a standard and then maintain them there. “Keep in repair” assumes the premises already meet the standard; the tenant maintains. The benchmark is judged objectively by reference to the building’s age, character and locality. Drafting can raise the standard (“good and substantial repair”) or cap it via a schedule of condition.

2) Schedules of condition

A well-prepared schedule of condition records the property state at lease grant and can limit the tenant to “no worse than” that condition. It is one of the most effective risk controls in London’s older stock and Birmingham’s heritage conversions:

Reduces arguments that the tenant must improve the building.

Helps control dilapidations at expiry by fixing a clear baseline.

Must be comprehensive: narrative, drawings (if relevant), and annotated photographs.

3) Decoration and cyclical obligations

FRI leases often require periodic decoration (e.g., every 3-5 years) and final decoration at hand-back. Decoration can bite even when surfaces are technically “in repair”. External cycles - common on Manchester’s exposed city-centre sites - should be budgeted early.

4) Alterations, reinstatement, and yielding up

Alterations usually need landlord consent and may trigger reinstatement to the original layout at lease end. Watch for clauses where the landlord can elect near expiry whether reinstatement is required - late elections can cause programme risk. Keep as-built drawings and O&M manuals up to date.

5) Building services and statutory compliance

Many FRI obligations cover service media (HVAC, electrical, water, drainage, fire systems) plus testing/certification obligations (EICR, gas safety, legionella, etc.). Where plant is near end of life, the repair vs renewal line becomes contentious - particularly in older London stock. Lifecycle data and clear drafting are essential.

6) Insured risks and reinstatement

Typically the landlord insures and recovers the premium via insurance rent; the lease governs responsibility for reinstatement after insured events. The landlord often reinstates using insurance proceeds (with potential rent abatement), while tenants bear risk for tenant’s fixtures and business interruption outside insured cover.

The legal backdrop: repair, renewal, and damages

Repair vs renewal

In broad terms, repair means making good deterioration; renewal implies substantial replacement. Replacing a small component is more likely repair, whereas replacing “substantially the whole”—for example, an entire roof build-up—suggests renewal. Whether the tenant must carry out a renewal depends on the lease wording and facts.

Section 18(1) cap (Landlord and Tenant Act 1927)

At lease expiry, the landlord’s damages for disrepair are capped by Section 18(1):

Damages cannot exceed the diminution in value of the reversion caused by disrepair.

If the landlord intends to alter or demolish so that repairs would be wasted, the claim may be reduced (often called supersession).

For tenants across London, Birmingham and Manchester, Section 18(1) can materially reduce liability where the cost of works is high but the value impact is low, or where redevelopment is imminent.

Jervis v Harris clauses (landlord’s self-help)

Many leases include a Jervis v Harris-style right for the landlord to enter, carry out default repairs during the term, and recover the cost as a debt. This may circumvent the Section 18(1) cap on damages, so tenants must watch notice, scope and cost reasonableness.

Lifecycle: how FRI lease repairing obligations play out

1) Pre-lease due diligence

Inspect thoroughly: roofs, fabric, M&E, drainage, water tightness, fire/life safety systems.

Commission a building survey and M&E lifecycle report to price risk accurately.

Negotiate a schedule of condition where fabric or plant is aged/defective.

Calibrate the repair clause; define service media responsibilities and excluded items (latent/inherent defects).

Map decoration cycles, testing/compliance, and reinstatement rules.

Align FRI duties with any service charge if part of a multi-let building.

2) During the term

Implement a planned preventive maintenance (PPM) regime aligned to lease duties.

Maintain evidence: test certificates, inspection logs, approvals, warranties and O&M documentation.

Classify defects: record technical basis for repair vs renewal and decisions made.

Manage alterations by consent; update as-builts and re-commission systems.

Respond to interim schedules or notices within time limits, especially where landlord self-help applies.

3) Lease expiry (dilapidations)

Start 12–18 months out with an internal review and programme.

Expect a schedule of dilapidations covering repair, decoration, reinstatement and statutory items.

Follow the Dilapidations Protocol to frame evidence and explore ADR.

Assess Section 18(1) diminution, supersession (landlord’s works), and betterment.

Where time is tight, evaluate a commercial settlement with robust technical and valuation evidence.

Typical pain points—and practical fixes

Ambiguous drafting

Problem: Vague standards without context. Fix: Define the repair standard, tie to a schedule of condition, and clarify structural vs non-structural and service media.

Lifecycle vs repair

Problem: Life-expired plant—repair or renewal? Fix: Use lifecycle reports and exclude capital renewals unless expressly assumed.

Reinstatement elections

Problem: Late landlord elections cause programme risk. Fix: Add a cut-off date (e.g., 6 months pre-expiry) with a deemed position if no response.

Decoration cycles

Problem: Large external decoration bills near expiry. Fix: Set clear cycles, agree standards, and plan spend across the term.

Shared service media

Problem: Who repairs risers/roof plant? Fix: Align FRI repair with the service charge regime and attach plans showing demised vs common assets.

Break options and compliance

Problem: Strict break conditions around repair/decoration/reinstatement and vacant possession. Fix: Use a countdown plan, agree waivers early, retain evidence.

Cost, damages, and settlement dynamics

Measuring loss

Landlords often claim cost of works, fees, and rent/rates during works. Tenants challenge scope and rates, argue betterment where works exceed the standard, rely on Section 18(1) diminution supported by valuation evidence, and raise supersession where the landlord’s intended works would render repairs valueless.

Landlord works during the term (self-help)

Where a Jervis v Harris clause applies, landlords can do default works and recover the cost as a debt. Tenants should monitor notices, propose cost-effective alternatives, and offer undertakings with programme and quality controls where appropriate.

Negotiation and ADR

The Dilapidations Protocol encourages proportionate exchange and ADR (e.g., mediation, expert determination). Well-prepared parties with solid technical and valuation evidence settle faster and more cost-effectively than litigants.

Drafting & negotiation checklist (tenants)

Schedule of condition attached, high quality, referenced in all relevant clauses.

Repair standard tied to the schedule: no worse than evidenced.

Clear structural vs non-structural and service media allocation.

Decoration cycles: frequency, scope, standards, and final decoration.

Insurance: landlord reinstatement duties, rent abatement, uninsured risk allocation.

Alterations: consent process, reinstatement rules, and election timetable.

Statutory compliance: testing, certification, and record-keeping duties.

Jervis v Harris: trigger limits, notice periods, reasonable costs only.

Break clause: align with repair/decoration/reinstatement timing.

Service charge alignment for multi-let buildings.

Maintain a live data room: surveys, lifecycle, warranties, O&M, approvals.

Operational checklist (during the term)

Run a PPM plan with clear responsibilities and budgets.

Keep evidence: certificates, service logs, photos before/after repairs, invoices.

Manage alterations via consent; update as-builts and commissioning records.

Conduct mid-term condition reviews to avoid end-loaded costs.

Track trigger dates: decoration cycles, reinstatement elections, break notices.

Respond promptly to interim schedules with technical reasoning and programme.

FAQs: FRI lease repairing obligations

What does an FRI lease actually make me pay for?

Typically, repairs and maintenance to the demised premises (often including structure and services) plus the insurance premium recovered by the landlord. The lease wording is decisive.

Can a schedule of condition limit my FRI lease repairing obligations?

Yes. A robust schedule can cap liability at “no worse than” the recorded state, protecting tenants from being obliged to improve the property.

Do I have to replace life-expired plant under an FRI lease?

It depends. Some replacement is repair, but replacing substantially the whole of a system looks like renewal. Lifecycle surveys and clear drafting reduce disputes.

What is Section 18(1) and why does it matter?

At expiry, Section 18(1) of the Landlord and Tenant Act 1927 caps damages to the diminution in value caused by disrepair, and reduces damages where landlord’s redevelopment would supersede repairs.

What is a Jervis v Harris clause?

A mechanism allowing the landlord to enter, carry out default repairs during the term, and recover the cost as a debt. Tenants must monitor notice and scope closely.

How do break options interact with FRI lease repairing obligations?

Breaks often require strict compliance with repair/decoration/reinstatement and vacant possession. Work to a countdown plan, seek waivers early, and collect evidence of compliance.

What if the landlord plans to redevelop?

Genuine redevelopment can reduce damages via supersession. Reinstatement and statutory items may still be required unless agreed otherwise.

How are dilapidations typically settled?

Most matters settle via negotiation or ADR under the Dilapidations Protocol, supported by strong technical and valuation evidence.

Local context: London, Birmingham and Manchester

Market practice and building stock vary. In London, older heritage fabric and complex service media make schedules of condition and lifecycle plans critical. For Birmingham, city-centre regeneration and conversions demand clarity on reinstatement and decoration cycles. In Manchester, exposure and weathering can push external maintenance costs; set realistic PPM budgets and evidence standards early.

FRI Lease Repairing Obligations - Related Resources

Dilapidations Glossary of Key Terms

Understanding Section 18(1) and Diminution Valuations

Supersession in Dilapidations: What It Means for Landlords and Tenants

Contact - FRI Lease Repairing Obligations

Need pragmatic help interpreting FRI lease repairing obligations, planning dilapidations strategy, or preparing for yield-up? Our specialists can review your lease, benchmark fabric and services, and build a cost-controlled roadmap to exit. See our Dilapidations page or contact us to get started.

We assist commercial landlords and tenants on all aspects of lease obligations, repair and dilapidations.

We provide specialist surveys, new lease schedules of condition and general dilapidations advice.

For any help or advice on repair obligations, Dilapidations issues; or to commission a schedule of condition for a new lease call us on 020 4534 3132 or contact one of the team :