Suitable premises found, you will then discuss the terms with the agent, who will produce a document called ‘Heads of Terms’ or ‘HoTs’ for short. These HoTs are a very good starting point for guidance on what the terms of the lease will be. All well and good but do bear in mind that the agents are acting for the landlord and not for you and it is therefore highly likely that the HoTs will be drafted to favour the landlord.
So, what do you do? The answer is easy – let your commercial property solicitor look at the HoTs first and certainly before you sign anything. They will normally do this without charging a fee, not out of altruism, but because they want the framework document to be something that is good for them to work with.
If you have already signed to approve the HoTs, it becomes much harder to unravel unfair points later, not least because both the landlord and the agent will believe that you have accepted all the terms without a query. It is likely that the landlord’s lawyer will also have drafted the documents to reflect the HoTs and will not take kindly to being called upon to rewrite the document.
Even before the HoTs stage, many commercial property lawyers are happy to have a chat with you and give you some pointers on what you should be looking for in a commercial lease, such as ability to sell or hand the lease on if you need to or to underlet the whole or part of the property. A tenant’s break right is also a bonus if, for whatever reason, you need to end the lease early – hopefully to move to larger premises because the business is booming.
If you wish to discuss this further, please do not hesitate to contact Hilary Palmer by email: hgp@cooperburnett.com or tel: 01892 515022
This blog is not intended as legal advice that can be relied upon and CooperBurnett LLP does not accept any responsibility for the accuracy of its contents.
Originally published in the Tunbridge Wells Business Magazine: www.twbusinessmagazine.com
