Many business transactions involve a leased property, and often this will involve the grant of a new lease to the buyer.
The main lease terms that are agreed between the parties should be recorded in a document called the Heads of Terms.
Some of the key points that must be covered by the Heads of Terms are listed as follows:Â
- Details of the landlord and the tenant.
- The term (duration) of the lease.
- The Rent amount.
- Any rent free period (if any).
- The Rent Deposit amount (if any).
- Insuring and repairing obligations.Â
- Service charge calculation/ apportionment.
- The Permitted Use of the property.
- Rules on Alterations at the property.
- Break Options available to the landlord and/or the tenant.
- The Rent Review provisions.Â
- The landlord’s Forfeiture provisions (if any).
- Payment of the legal fees involved in the transaction.
- Details of the legal representatives for each of the parties.
If you’re interested inÂ buying or selling a business, or you require assistance with a commercial lease transaction,Â and would like to find out more, please contact Inam Ali onÂ email@example.com.