1. What Sort of Lease Do I Have?

Building Lease

The standard lease offered by Highland Council is a Tenant Full Repairing & Insuring lease (FRI).  This is the standard type of lease most commonly used for the letting of commercial and industrial premises in Scotland.  Under this type of lease, all repairs to the premises and the payment of insurance premiums are the responsibility of the tenant.

The building insurance for the premises is provided under a block policy in the Highland Council’s name. The excess is £250. The Council then recharges the insurance premium for each property back to the tenant which is usually collected monthly by direct debit with the rent.

Ground Lease

A ground lease (or development lease) is a lease of an area of land on which the tenant then erects a permanent building or structure.  The building or structure is owned by the tenant but the land remains in the ownership of Highland Council.  Responsibility for maintenance, repair and insurance of the building lies with the building owner.