Heads of Terms for a Business Lease
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1 Heads of Terms for a Business Lease At Nutshellaw we recognise that when many businesses and their landlords ask a solicitor to prepare or advise them on a draft lease, they may already have agreed the key terms. This can lead to problems where the terms are not appropriate or important issues which should have been considered have been missed. Renegotiating such terms can cause delays to leases being completed and deals to fail. Worse still, Landlords and Tenants may agree leases which come to back to bite them! This document is designed to assist Landlords and Tenants agree and record the key terms of a lease on a SUBJECT TO CONTRACT basis. It is not a lease and it is not a substitute for taking formal legal advice. This document does not cover every eventuality or all the terms which may be necessary for your business circumstances. It is a starting point for both parties to consider and agree what basic terms they want included in a lease. Permission is given for Landlords and their prospective or existing Tenants to use this document to record the agreed key terms between themselves. We recommend that you then take legal advice on preparing the formal Lease. Nutshellaw are business legal specialists able to assist Landlords and Tenants in the formation, management and determination of Commercial Leases as well as offering a full range of legal services to support your business. As members of the NutNet Professional Network, we are also able to offer our clients access to and preferential rates from a number of other professional services such as Surveyors, Letting Agents, Financial Advisers and Accountants. Call Nutshellaw today on or visit Our specialist lawyers and solicitors can draft or advise you on your Lease and the obligations you are entering into. If you quote reference HOT2014 and instruct us to prepare or advise you on a lease based on heads of terms recorded in this document, you will receive a discount of 5% off our fees for such preparation or advice on the Lease in Nutshellaw Ltd. 2014
2 Model Heads of Terms for Business Lease THE FOLLOWING TERMS HAVE BEEN AGREED SUBJECT TO CONTRACT 1. PROPERTY TO BE LEASED Detailed description of property and address... WHOLE OR PART ONLY Whole OR Detailed description of part to be leased..(delete as appropriate) PLAN ATTACHED 2. LANDLORD Name. (Company Number) (Registered) Office Correspondence Address (if different).. 2. TENANT Name. (Company Number) (Registered) Office Correspondence Address (if different).. 2
3 3. GUARANTOR (if applicable) Name. (Company Number) (Registered) Office Correspondence Address (if different).. 4. RENT EXCLUSIVE OF VAT.....per PAID IN ADVANCE IS PROPERTY VAT ELECTED ANY RENT FREE PERIOD PREMIUM (if any) RENT REVIEWS Weekly OR Monthly OR Quarterly (delete as appropriate) Yes.. OR No (delete as appropriate) None OR Upwards only OR Full Review (delete as appropriate) Every Years SERVICE CHARGE (if any).....per 3
4 RATES AND UTILITIES State who is responsible to pay. 5. INITIAL WORKS Any works the Landlord will carry out before the Tenant has access OR Tenant to provide fit out plan for Landlords approval/info 6. DEPOSIT (if any). 7. LEASE Length.. Start Date Break Clause (if applicable) SECURITY OF TENURE Is the Tenant to be automatically entitled to a lease renewal 8. ADDITIONAL RIGHTS Describe and additional rights such as access, services, storage area, car parking spaces... PLAN ATTACHED 9. ASSIGNMENT Assignment of Whole allowed with Landlords Consent OR Assignment is not permitted (delete as appropriate) 10. SUBLETTING Subletting permitted with Landlords Consent OR Subletting is not permitted (delete as appropriate) 11. REPAIRING OBLIGATIONS Describe Tenants obligation for repairs and decoration. 4
5 Describe Landlords obligation for repairs and decoration. SCHEDULE OF CONDITION 12. ALTERATIONS Alterations allowed with Landlords Consent OR Alterations not permitted. Tenant may attach internal fittings but must remove at Lease end (delete as appropriate) 13. PERMITTED USE Specify permitted use 14. INSURANCE Landlord to Insure Property. State any other insurance obligations 15. LEGAL COSTS Each party to pay own costs OR Tenant to contribute... to Landlords legal costs OR Tenant to pay Landlords reasonable legal costs(delete as appropriate) 16. CONDITIONS State any conditions which need to be met before grant of Lease Planning, References, Schedule of Condition etc. 17. GENERAL State any general matters not set out elsewhere. 5
6 18. ACCESS DATE State any target dates. 19. SOLICITORS LANDLORD Instruct Nutshellaw Branch.. OR Name Office. Reference. TENANT Instruct Nutshellaw Branch.. OR Name Office. Reference. 6
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