Bank Rate has not moved all year. Your lease liabilities would not have moved if it had.

Bank Rate has sat at 3.75% since 17 December 2025. In September three members of the Monetary Policy Committee voted to raise it. The next decision is on 5 November.

So the question is arriving in finance teams: if rates move, do we re-discount the lease liabilities?

Almost always, no. Here is how the rate on a lease liability actually behaves under FRS 102.

It is fixed on one day. A lease is measured at the rate for its commencement date (paragraph 20.49). A lease that was already running at your transition date is measured at the rate for that date, whatever year it was signed (paragraph 1.51(a)). A tenancy from 2019 was priced at the 1 January 2026 rate, so this year's rate level is already in it.

After that, the liability unwinds at that same rate, period after period, until the lease ends (paragraph 20.63). The Bank of England's eight decisions a year do not touch it.

Three events do reset the rate, and each of them is something you do, not something the market does:

1. The lease term changes. An option is exercised, or you become reasonably certain you will exercise it. The liability is remeasured at a fresh rate taken on the date of that reassessment (paragraphs 20.66(a) and 20.67).
2. You and the landlord change the deal. A modification is remeasured at a fresh rate on the date it takes effect (paragraph 20.71(c)). There are three cases where you may keep the old rate instead, such as a rent reduction with no change in what you occupy (paragraph 20.72), and if you keep it, the note must say so (paragraph 20.79).
3. The rent is itself tied to a floating interest rate. Then, and only then, a rate change flows through to the discount rate (paragraph 20.69).

And the one that catches people: an RPI or CPI uplift, or a market rent review, remeasures the payments but keeps the original rate (paragraphs 20.68(b) and 20.69). New rent, old rate.

New leases signed from here on carry the rate for their own commencement date. A portfolio of leases built up over several years will therefore hold several rates, each tied to a date, and that is the correct position, not an inconsistency to be tidied up.

Lease102 records the day each lease's rate was taken for and why, prices a reassessment or a modification at a revised rate on the date it happens, keeps the original rate on an index or market rent review, and reports any lease whose recorded rate differs from the published rate for the day that governs it.