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Commercial Property Heads of Terms

A completed commercial lease heads document separating agreed commercial points from non-binding subject-to-contract terms.

Jurisdiction: England and Wales - completed fictional worked example

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Important: This sample provides general legal information only and is not legal advice. Check the law, prescribed forms and signing requirements that apply to your exact jurisdiction and circumstances before use.

# COMMERCIAL PROPERTY HEADS OF TERMS

Date: 2 December 2030

Parties: Harbour Retail Limited and Wessex Estates Limited

## 1. Purpose and parties

These heads concern Unit 3, Riverside Parade, Bristol BS2 0AA, for a proposed retail and café lease. Harbour Retail Limited is the proposed tenant and Wessex Estates Limited the proposed landlord. Neither party promises that a lease will be completed.

## 2. Facts, scope and terms

The proposed term is ten years from completion, with a tenant-only break on the fifth anniversary on six months' notice, conditional on basic rent being paid and material breaches remedied. Annual rent is £48,000 exclusive of VAT, payable quarterly in advance, with a three-month rent-free period for fitting out.

## 3. Process and responsibilities

The premises are 2,100 square feet. Service charge is capped at £9,500 per service-charge year initially, excluding exceptional structural works and utilities separately metered. The tenant pays business rates, insurance rent and utilities and must obtain consent for alterations and signage.

## 4. Evidence, records and safeguards

The use is the agreed planning use and any ancillary café use permitted by the lease and planning authority. The landlord gives no warranty that planning, licensing, extraction or alcohol permissions are available; the tenant must investigate before commitment.

## 5. Review, escalation and outcome

The parties will instruct solicitors, provide title and asbestos information, agree repairing and reinstatement obligations, and document deposit, guarantor, EPC and insurance requirements. An agreed surveyor will record condition to limit future disputes, without changing the lease's repair covenant.

## 6. Reservations and practical protections

Only clauses expressly stated binding are confidentiality, each party's own costs, exclusivity until 31 January 2031 and governing law. All other points are subject to contract, survey, finance, planning and board approval; no offer, acceptance or legal commitment arises from these heads.

## 7. England and Wales law and completion

England and Wales law applies to the binding provisions. Email and post are alternative permitted notice methods. Wessex and Harbour sign for discussion on 2 December 2030, marked SUBJECT TO CONTRACT.

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