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F E Smith
F E Smith, Advocate
Category: Law
Satisfied Customers: 8960
Experience:  I have been practising for 30 years.
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I am taking a sub lease out, and below are head of terms, is

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Hi I am taking a sub lease out, and below are head of terms, is it anything that I should be aware of that could not be in my favour? I am aware that the landlord does not want to put a renewable lease at this stage.
PARTIES
LANDLORD
Name: MXXXir CXXXts Ltd
Address: TBC
LESSOR
Name: JoXXXn CleXXXs UK Ltd
Address: PiXXXn Way
Fulwood
PXXston
PX2 9XD
LESSEE
Name: IshXXn UniXXsal Ltd
Trading as: TBC
Address:*****
HXXS,
LONDON,
MIDDLESEX
UXX 0XX
Company no: 07211XXX
FAO:
Email:
Mob:
3.0 DEMISE
All those premises known as***** ChXXXa, London, SXX0 0XL, arranged over ground
floor and basement.
4.0 TENURE
New Sub Lease due to expire 11 th February 2020. Lease to be contracted outside the Landlord &
Tenant Act 1954 S24-28.
Heads of Terms for New Sub Lease –*****
CXXXXa, London, SXX0 0XX
Without Prejudice & Subject to Contract
Page 2 of 4
07 th October 2016
5.0 RENT
£46,500 per annum exclusive plus VAT.
6.0 RENT DEPOSIT
6 month rent deposit to be held with the Lessor during term of the Lease.
7.0 RENT FREE
2 months rent free from commencement on the term.
8.0 USE
To use the premises as a mobile phones repair & sales retailer within Class A1 of The Town and
Country Planning (Use Classes) Order 1987 (as amended)
9.0 REPAIRS & INSURANCE
The Lessee is to have a Full Repairing & Insuring liability for the demise as per the Head lease.
The Landlord arranges insurance & recharges to the Lessee.
10.0 CONDITION
Lessee to take property is existing condition subject to Lessor carrying out repair works to ceiling.
11.0 TIMING
Once Heads of Terms have been agreed and solicitors instructed, each party should aim to
exchange and complete within 28 days. Subject to works being completed by Lessor.
12.0 LEGAL & OTHER COSTS
Each party are to bear their own costs incurred in this transaction.
Any Landlord costs are to be split between the Lessor & Lessee.
13.0 TERMS & CONDITIONS
i) Subject to Contract
ii) Subject to Board Approvals
iii) Subject to Landlord Consent
Heads of Terms for New Sub Lease – 4X8 XXX Road,
CXXXea, LXXXn, SXX0 0XX
Without Prejudice & Subject to Contract
Page 3 of 4
07 th October 2016
14.0 REPRESENTATIVES
Landlords Solicitors:
TBC
FAO:
Tel:
Fax:
Email:
Landlord’s Agent:
TBC
FAO:
Tel:
Email:
Lessor’s Solicitors:
Bristol
BXX9 7UD
FAO: C
Tel:
Email:
Lessee’s Solicitors:
FAO:
Tel:
Email:
Lessor’s Agents:
EXXX
Submitted: 5 months ago.
Category: Law
Expert:  F E Smith replied 5 months ago.

Although this is a sublease, you are bound by the terms of the head lease and hence, would need someone to go through the head lease in detail for you. Do you have the head lease?

Customer: replied 5 months ago.
At the moment I don't But I will request it just now, but from seeing HOT, is there anything I should look into, specially the exclusions of s24-28 of the act?
Expert:  F E Smith replied 5 months ago.

These are only heads of terms and hence, are not binding. It would only be the sublease that was a binding document.

It is normal for a sublease to exclude security of tenure or under the 1954 landlord & Tenant act. It is usually stated in the head lease that a sublease must contracted out.

Under section 12, you are jointly responsible for the landlord’s costs, if any, and it would be useful to know what they would be.

9, how much is the insurance? If it’s full repairing, you would be liable to do any repairs and to put the property in good condition even if it is in bad condition now. This needs to be read in conjunction with the head lease. I would want to see the provision in the sublease wording as well.

6 I don’t like the deposit being held for the term and would prefer it being held for the first 2 years and then returned subject to satisfactory payment of rent.

With the rental payment of £46,000 plus VAT, clearly this is a major commitment and I suggest that you get everything in writing from a high street solicitor because then, if something goes wrong, you can sue the solicitor in negligence.

Can I clarify anything for you? Please rate the service positive so that I get paid. We can still exchange emails. Best wishes. FES.

F E Smith, Advocate
Category: Law
Satisfied Customers: 8960
Experience: I have been practising for 30 years.
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