Business Lease Heads of Terms
These Business Lease Heads of Terms are designed to ensure that the landlord and tenant agree all significant points of principle before the landlord prepares and issues the draft lease (or asks their solicitors to do so).
The Heads of Terms prompt the parties to a business lease to record administrative information, such as the parties’ contact details, and to set out what has been agreed in relation to key points such as the lease term, break rights, assignment and underletting and repair. They also prompt the landlord to provide an Energy Performance Certificate (EPC) and have been updated to include consideration in the lease in respect of access for carrying out an EPC assessment, energy efficiency upgrading and for the tenant to pay the costs of energy efficiency works.
The tenant should ask for a plan to be attached to the Heads of Terms so that the extent of the property is clearly defined. If the lease is to have a term of more than 7 years the plan must be Land Registry compliant. Further information about the Land Registry’s requirements for lease plans can be found on the Land Registry website:
These Heads of Terns are not compliant with the Code for Leasing Business Premises, England and Wales 2020 ('the Commercial Lease Code'). The Commercial Lease Code sets out mandatory requirements regarding the lease negotiations and has a template heads of terms attached which should be used if the landlord or its agent is a RICS member or regulated by RICS or the lease is intended to be compliant with the Code. The Code can be found here.
This Business Lease Heads of Terms template is in open format. Either enter the requisite details in the highlighted fields or adjust the wording to suit your purposes.
Once you have purchased access to the appropriate document folder click on the “Download Document” button below. You will be asked what you want to do with the file. It is recommended that you save the document to a location of your choice prior to viewing.