New Commercial Lease – The Heads of Terms

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

1. Details of the landlord and the tenant.
2. The term (duration) of the lease.
3. The Rent amount.
4. Any rent free period (if any).
5. The Rent Deposit amount (if any).
6. Insuring and repairing obligations.Â
7. Service charge calculation/ apportionment.
8. The Permitted Use of the property.
9. Rules on Alterations at the property.
10. Break Options available to the landlord and/or the tenant.
11. The Rent Review provisions.Â
12. The landlord’s Forfeiture provisions (if any).
13. Payment of the legal fees involved in the transaction.
14. Details of the legal representatives for each of the parties.

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If you’re interested in buying or selling a business, or you require assistance with a commercial lease transaction, and would like to find out more, please contact Inam Ali on inam.ali@lawdit.co.uk.