Solicitors for Commercial Lease Review and Negotiation

One of the most important tasks that business owners face is securing an agreeable lease. A commercial lease represents a business’s largest monthly expense, so it is essential to get it right. This is why it is a good idea to hire solicitors for commercial lease review and negotiation. They can explain the terms of your lease and identify any clauses that may put your business at risk. In England and Wales, our conveyancing solicitors for commercial leases offer a comprehensive range of services related to commercial leases.

Heads of Terms

Heads of Terms are a key part of the pre-contract stage in lease negotiations. They set out the main terms of a deal and can often be finalised before solicitors are involved, which avoids the legal costs associated with drafting contracts or definitive agreements.

It is important to ensure that Heads of Terms contain all the details that are relevant to the commercial lease being negotiated. These may include: a fixed annual rent; whether there are any specific landlord’s requirements in relation to the assignment or subletting of the property; a cost-sharing arrangement, which could be for the landlord to bear some or all of the tenant’s legal fees and expenses; an indemnity from the tenant in respect of repairs; and insurance policies.

In addition, the Heads of Terms should state whether they are legally binding or not. This will help to prevent the creation of a legal agreement in principle which could then be undermined by actions taken by one or both parties before Heads of Terms are signed and any legally binding documentation is drafted.

The Heads of Terms should also list all the key commercial issues that need to be agreed upon prior to any detailed discussions, including aspects such as pricing, duration of the contract, service levels, warranties, and termination events. This will help to ensure that the negotiations are as efficient and successful as possible.

Lastly, Heads of Terms should also set out the key obligations of both parties in relation to their duties and responsibilities under the contract or lease. This will include the obligation to keep the premises in good condition (which can be done with a schedule of conditions) and ensure that any agreed obligations are a balanced outcome for both the landlord and the tenant. In England and Wales, our conveyancing solicitors for commercial leases offer a comprehensive range of services related to commercial leases.

It is vital that the Heads of Terms are drafted in a detailed and comprehensive manner by an experienced real estate solicitor This will ensure that all questions raised by both the landlord and the tenant at an early stage can be answered, ensuring that the legal process is as smooth as possible.