Leasing a commercial property can be a daunting and complex process, which, if it isn’t done right, can be costly. Fortunately, Heads of Terms exist to serve as a crucial role in these transactions by outlining key parameters and conditions that are agreed upon by both parties. 

In England and Wales, Heads of Terms are not binding; they simply provide an agreement in principle between the parties and are a framework of what has been agreed.  It’s this framework that gets sent to the solicitor, who then drafts the finer details of the lease agreement. Whilst not legally binding, if the lease terms end up varying too much from the Heads of Terms, it can cause frustration and fractures in the landlord and tenant relationship. This is why it is important to be fully aware of the implications of what is being agreed to before finalising the Heads of Terms and sending them off to the solicitors.

Once Heads of terms are agreed by the landlord and tenant, they are sent through to the respective solicitors via the landlord’s property agent. The landlord’s solicitor will draft the lease and send it through to the tenant’s solicitor for comment. 

Then, the solicitors will reach an agreement on the form of lease, which can then be signed by the landlord and tenant. This part of the process can take between 8 and 12 weeks. 

There are many factors that are frequently overlooked, often to the benefit of the landlord. These missed factors usually include issues around the structure of the lease, such as market incentives, break clauses or repairing liability, all of which can significantly impact your business and prove costly further down the line.  

At The Lease Negotiator, we are commercial property experts who work solely on behalf of commercial tenants. The ideal time to enlist an expert, like us, is at the start of your lease negotiations. However, we can still provide our expert services, even if you are in the final stages of your negotiations.

We will review the heads of terms with a fine-tooth comb and identify any crucial factors that may have been missed or overlooked. The idea is to set you up for sustainable success, and getting the best deal on your biggest expenditure is a great foundation for your business’s future. 

We take pride in our ability to prevent costly mistakes, even at the eleventh hour. So why not get in touch with us today and let us support you in securing the best possible lease agreement for your business?