FRI is a term used to describe a lease where the tenant is responsible for all repairs and for insuring.
However, the term also applies to the liability for payment of these costs, known as effective FRI. FRI
leases therefore include those where the landlord pays for external repairs and recovers the cost via
service charge or contribution to “shared” expenditure. Also where, as is most common, the landlord
maintains the insurance and recovers the cost of the premium from the tenant, usually as further