A commercial lease is used for business premises such as shops, offices, pubs and warehouses. A residential lease is for property used as a home.
Many commercial leases are covered by the Landlord and Tenant Act 1954, which can give business tenants security of tenure and the right to renew their lease, unless those rights have been excluded. Commercial leases also tend to place greater responsibility on the tenant, often on a Full Repairing and Insuring (FRI) basis. Residential tenancies are governed by a separate set of rules entirely.