Leases place onerous obligations on tenants and are typically
drafted to favour a landlord. Tenants of retail leases are afforded
some protection by the Retail Leases Act 1994. However,
there is no similar legislation for tenants occupying commercial or
industrial premises.
Agreeing the commercial terms of a lease, such as the term,
rent, rent reviews etc, is only the first step. The fine print of
any lease should then be reviewed to determine whether amendments
are required to protect a tenant against some of the more
“landlord friendly” clauses.
Set out below are some tips and traps for tenants to consider
before signing a lease:
-
Agreement for lease - before a lease is prepared and submitted
to a tenant, it is common for landlords to require tenants to enter
into a Heads of Agreement, also known as a Heads of Terms, Term
Sheet or Proposal. Tenants should ensure that any Heads of
Agreement is expressly stated not to be binding or is subject to
the tenant
