Fiducia TogetherCommercial lease heads of terms
The summary of a proposed lease, agreed before the lawyers start.
Please note: This page explains what a term means. It is general information, not legal, financial, tax or investment advice, and it does not know anything about your business. Before you sign, file or commit to anything, check it with an accountant, a solicitor, or the official guidance we link to.
What it means
Heads of terms set out rent, term, break clauses, rent review, repairing obligations, permitted use, service charge and whether the lease is inside or outside the 1954 Act.
Why it matters
Nearly everything is decided here. Once agreed, changing a point in the drafting is possible and looks like bad faith.
What it looks like in practice
Negotiate the break clause and its conditions, a schedule of condition to cap repairing liability, and a rent-free period at this stage.\n\nUse a surveyor before a solicitor — the commercial terms are the surveyor's job.
What to watch out for
Signing heads of terms marked "subject to contract" and then behaving as though they are not binding — or forgetting that some parts, like exclusivity, may be.
Where to get proper advice
A chartered surveyor for the terms and a commercial property solicitor for the lease.
Where to read more
Last reviewed 2026-08-28 by Fiducia Together · Next review due 2027-08-28
Please note: This page explains what a term means. It is general information, not legal, financial, tax or investment advice, and it does not know anything about your business. Before you sign, file or commit to anything, check it with an accountant, a solicitor, or the official guidance we link to.