Railway Arch Lease Guide: What to Check Before Signing

Railway arch leases are fundamentally different from standard commercial leases. The landlord typically demises only the airspace within the arch — not the physical structure. You cannot bolt anything to the brickwork, paint the interior, or make structural alterations. Every fit-out must be freestanding and fully removable at lease end.

Most arch leases are also contracted out of the Landlord and Tenant Act 1954, meaning you have no automatic right to renew when the lease expires. And the landlord retains broad termination rights for railway works — sometimes with as little as seven days' notice.

This guide covers every clause you need to check before signing, drawn from current lease terms offered by The Arch Company, Places for London (TfL), and Network Rail. Miss any of these and you could face unexpected costs, forced closure, or the loss of your entire fit-out investment.

Unlike a conventional commercial lease where you rent the building, an arch lease typically grants you only the airspace within the arch. The physical structure — the barrel, piers, and abutments — remains with Network Rail (or TfL). This has major practical consequences:

• No fixing to the structure — you cannot bolt shelving, lighting rigs, climbing walls, or equipment to the arch brickwork
• No painting the interior — the exposed brickwork must remain untouched
• Freestanding fit-out only — all internal structures (mezzanines, partition walls, lining systems) must be self-supporting and removable
• Full reinstatement at lease end — you must strip out everything and return the arch to its original condition
• Landlord excludes liability for noise, vibration, or dirt falling from the tracks above

The Landlord and Tenant Act 1954 (Part 2) gives business tenants a statutory right to renew their lease when it expires. However, most railway arch leases are contracted out of this protection — meaning you have no automatic right to stay when the term ends.

The Arch Company's standard tenancy agreement is granted outside Sections 24–28 of the Act. Places for London's Wood Lane units are also contracted out. If your lease does not explicitly exclude the Act, you may have security of tenure by default — check your lease carefully.

Law Commission Reform (2026)

The Law Commission is actively reforming the 1954 Act. Key provisional conclusions as of March 2026:

• The contracting-out model is retained — landlords can still exclude the Act
• The minimum term for statutory protection may rise from 6 months to 2 years — watch for landlords offering rolling 23-month leases to avoid this threshold
• The contracting-out process will be simplified (removing “over-engineered” notices and declarations)

Statutory Compensation (Section 37)

If your lease is protected and the landlord opposes renewal on “no-fault” grounds (redevelopment or own occupation), you are entitled to compensation based on the Rateable Value. The April 2026 commercial revaluation may increase these amounts.

Railway arch landlords retain extensive termination and access rights that go far beyond a standard commercial lease. The arch sits beneath a working railway, and the landlord's primary obligation is to the infrastructure — not your business.

Break Clauses for Railway Works

Most arch leases allow the landlord to terminate with short notice for operational requirements — sometimes as little as 7 days. This can happen if Network Rail needs access for structural repairs, electrification work, or safety inspections. Your fit-out may need to be partially or fully removed.

Asset Protection Agreements (APAs)

If your fit-out involves works near the railway, you may need a Basic Asset Protection Agreement (BAPA). Triggers include:

• Working within 1.25m of a platform edge
• Working within 2.75m of overhead electrification
• Any excavation, crane use, or scaffolding

BAPAs can impose liabilities that exceed the value of your business. A deposit of 50% of the estimated cost is required upfront (100% if the cost is below £10,000).

Each major landlord offers different lease structures. Knowing what to expect helps you negotiate from an informed position.

Complete every item on this list before you commit to a railway arch lease. Each addresses a risk unique to arch tenancies.

1. Commission a damp survey — water ingress is the #1 physical issue. Know what you're dealing with before you budget for waterproofing
2. Verify the EPC rating — landlords must achieve minimum E rating. Expected to tighten to C for new leases, B by 2030
3. Check utility availability — three-phase power (£3,500–£15,000 to install), fibre broadband, and sewer connection are not guaranteed
4. Review the Decision Notice — check for site-specific planning conditions that may restrict your intended use
5. Get a Schedule of Condition — independent photographic record of the arch's state before you move in. Protects against dilapidation claims
6. Clarify infill wall responsibility — the front and rear non-arch walls are a grey area. Get it in writing
7. Check insurance covers water ingress — standard policies often exclude “gradual deterioration.” You need arch-specific cover
8. Use a specialist solicitor — railway property leases have unique pitfalls. Look for solicitors experienced in commercial property disputes
9. Check the rent review mechanism — understand the review cycle, basis (open market rent vs RPI), and your counter-notice deadline
10. Understand reinstatement obligations — budget for full strip-out at lease end. This can cost £20–£50 per sqft