New Commercial Property Heads of Terms

January 2013
This month we have added five new Heads of Terms templates to our Property Management folder. These Heads of Terms help landlords and tenants to agree the key terms of a transaction before time and money is spent on drafting formal documents.

Head of Terms for Lettings, Licences and Tenancies at Will

In addition to our existing Business Lease Heads of Terms, we now offer Licence to Occupy Heads of Terms and Tenancy at Will Heads of Terms. Landlords should use these templates during negotiations to ensure that the parties reach agreement on the key commercial points. If detailed Heads of Terms have been agreed, the process of drafting, negotiating and completing the letting documents (Lease, Licence or Tenancy at Will) should be much more straightforward.

Heads of Terms for Alterations, Assignments and Underlettings

During the term of a Business Lease, the landlord may well be asked by its tenant for consent to carry out alterations or to assign the lease or grant an underlease. In most cases, the Landlord must not unreasonably withhold consent (but the Landlord may be able to impose reasonable conditions). The Landlord’s consent is usually given by way of a Licence and we have template Licences to Alter, Assign and Underlet in the Property Management folder.

Our new Licence to Alter Heads of Terms template helps the landlord and tenant to identify the key points and reach agreement on them before a Licence to Alter is prepared.

Similarly, our Licence to Assign Heads of Terms and Licence to Underlet Heads of Terms can be used to agree the key terms of an assignment or underletting. As these transactions involve at least three parties (landlord, tenant and assignee or landlord, tenant and undertenant) it is even more important to reach agreement at an early stage, otherwise negotiations can become protracted and costly for all parties.

The contents of this Newsletter are for reference purposes only and do not constitute legal advice. Independent legal advice should be sought in relation to any specific legal matter.

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