Glossary
Full repairing and insuring lease: FRI lease
A lease where the tenant pays for all repairs and the buildings insurance.
What it means
Under a full repairing and insuring lease, the tenant takes on the cost of repairing the property, inside and out, and pays for, or refunds the landlord for, the buildings insurance. The landlord's income is close to the rent itself. Supported living leases to providers are often on these terms. Read the repairing covenant with the schedule of condition: a tenant can be asked to hand the property back in better repair than it was taken, and adaptations may have to be removed at the end.
Worked example
ExampleA five-year FRI lease to a provider at £1,650 a month, with a schedule of condition agreed at the start.
- Repairs and buildings insurance
- Paid by the provider
- Costs you keep
- Your liability cover, management and accounts: £600 a year in this example
- At the end
- Back in the condition in the schedule, adaptations as agreed
Your costs are low while the lease runs, but check who pays for reinstatement when it ends.
Information, not advice. Example figures are fictional and for illustration only.