Precedent heads of terms
HEADS OF TERMS
[PROPERTY ADDRESS]
SUBJECT TO CONTRACT
Landlord
[NAME] [COMPANY NUMBER]
T: [.]
Email: [.]
Landlord’s
Solicitors
[.]
T: [.]
Email: [.]
Tenant
[NAME] [COMPANY NUMBER]
T: [.]
Email: [.]
Guarantor
[NAME] [COMPANY NUMBER]
T: [.]
Email: [.]
Tenants’s Solicitors
[.]
T: [.]
Email: [.]
Demise
[ADDRESS / FLOOR / TITLE NUMBER]
[INTERNAL NON- STRUCTURAL / WHOLE BUILDING]
Additional Rights
[Car Parking / Kitchen / Toilets / Meeting Rooms / Satellite
Dish / Aircon]
Term
[.] years from [.]
Break and
Conditions
[Landlord break after [.] on [.] months notice]
[Tenant break after [.] on [.] months notice conditional
only on payment of principal rent up to break date, and no
subsisting tenancies
[Landlord to reimburse rents paid in advance for period past
the break date].
Security of Tenure
The Lease [will]/[will not] be excluded from the security of
tenure provisions of the 1954 Landlord and Tenant Act
Rent
[.] exclusive of VAT payable [quarterly] / [monthly ] in
advance
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Rent Free Period
[.] months from completion of the Lease
Rent Review
After [5] years to higher of [open market]/[RPI][stepped
rent]
Service Charge
The Tenant will pay a fair and reasonable contribution
towards the ongoing running and maintenance costs of the
common areas and any utilities not directly charged [
quarterly ] / [monthly] in advance [ subject to an annual
cap of [.]] [the cap will be increased in line with RPI]
Use
[as [.]] Use Class [.]
Changes within Use Class[.] will be permitted without
consent
Assignment and
Sub-Letting
Assignment
Underletting of whole [or a permitted part being [.] ]
will be permitted with consent not to be unreasonably
withheld or delayed
Tenant to provide an AGA on assignment if reasonable.
Assignee or Undertenant to provide [6] month rent deposit
or suitable guarantors if reasonable
The Tenant may group share or grant licences to franchisees
provided no security of tenure arises
Repairs
The Tenant will keep the Premises in [good and
substantial]/[good and tenantable] repair [by reference to
a photographic Schedule of Condition to be attached to the
Lease]
Alterations
External and structural alterations not permitted.
Internal non-structural alterations only permitted with
Landlord’s consent not to be unreasonably withheld or
delayed save installation of internal non demountable
partitioning / racking / shelving / which does not require
consent.
[Landlord to notify 6 months in advance of expiry whether
reinstatement of alterations is required.]
[Alterations in situ at commencement of renewal lease [not]
to require reinstatement.]
Insurance
The Tenant will contribute a fair and reasonable proportion
to the Landlord’s Property insurance policy
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Legal Fees
Each party to be responsible for their own legal fees
incurred in the transaction.
VAT
The Rent where quoted, is exclusive of, but WILL be liable
to, VAT.
Timing and
Conditions
[Agreement for Lease documenting Capital Contributions /
Consents / Enabling Works]
[Rent deposit of [.] plus VAT]
[Board approval] /[Funder consent]
[Licence to Alter for fit out works - these will be
documented in a Licence to Alter]
[The Tenant will provide a Rent Deposit for [.] months rent
on completion]
[For renewal leases - the lease will otherwise be on the
same terms as existing subject to appropriate
modernisation]
Kennedys is a trading name of Kennedys Law LLP. Kennedys Law LLP is a limited liability partnership
registered in England and Wales (with registered number OC353214).
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