Heads of Terms

I have been searching for a free heads of terms template online for a long time. I wanted to make sure that my landlord was not ripping me off with his heads of terms.  I could not find one that was for free so I got it taken care of for you.  I actually paid for my heads of terms agreement, and have asked my lawyer who told me it is okay to share it online for free.

Heads of terms are the words used to decribe a legal document that is non-binding.  The purpose of the heads of terms document is to outline the major points or issues that are relevant in any type of agreemnt, whether that be a partnership agreement or even an agreement to sell a business.

The only way for a heads of terms to be legally enforceable is if it is grandfathered in to a legally binding contract.

                                              HEADS OF TERMS

Ground Floor Retail premises (Put Your Business/Home Adress here)

Dated: The Date of the Agreement

SUBJECT TO CONTRACT

SUBJECT TO CLIENT APPROVAL

HEAD LEASE TERMS                         

Date of Lease:                                     TBC.

Lessor:                                                Person or Company Leasing the Property

Lessee:                                               TBC

Term:                                                  When the real agreement would start

Demise:                                                All those premises known as XXXXX and each and every part thereof forming part of the building together with all landlords fixtures and fittings and the conducting media therein.

Rent:                                                   £27,000 per annum exclusive of VAT and all other outgoings subject to half rental for the first six months of the term.

Service Charge:                                   The lessee pays a fair proportionate service charge to cover the lessors costs incurred in the cleaning of common areas, external maintenance and landscaping, and all other management costs associated within the estate.

Alienation:                                          Not at any time during the said term to assign, underlet or part with possession of part only of the demised premises.  May assign or sublet the whole of the demised premises subject to landlords consent (consent not to be unreasonably withheld). (Any sub-let to be outside the protection of the 1954 act)

Repairing:                                           At all times during the term to repair (include renewing), maintain, cleanse and keep the demised premises and each and every part thereof in good and substantial repair.

Alterations:                                         Non-structural alterations allowed, structural alterations allowed with landlords consent not to be unreasonably withheld.

Use:                                                    Not to use the demise for any purpose other than for the retailing of food and drinks, without written landlords consent.

Yielding Up:                                        The tenant to yield up the demised premises with the fixtures and fittings and additions thereto (tenants fixtures and fittings only accepted) at the expiration in good and substantial repair. 

Lessors’s Solicitors:                           TBC

Lessee’s Solicitors:                             TBC

Legal Costs:                                        Each party to bear their own legal costs with regards to execution and completion the lease.

Other Terms:                                       Lease is to be excluded from the provisions of sections 24 to 28 of the Landlord and Tenant act 1954. 

Conditions:                                         These heads of terms are subject to:

·         Contract

·         Client approval