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Letter Of Intent Lease Proposal Template for England and Wales

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Key Requirements PROMPT example:

Letter Of Intent Lease Proposal

"Need a Letter of Intent Lease Proposal for a 5,000 sq ft Grade A office space in Central London, with a proposed 10-year lease term starting March 2025, including break options at years 3 and 6, and permission for substantial fit-out works."

Document background
A Letter of Intent Lease Proposal is commonly used in the initial stages of commercial property transactions in England and Wales. It serves as a formal expression of interest and outlines preliminary terms between prospective landlords and tenants. The document typically includes proposed rental terms, property specifications, timeline expectations, and any specific conditions for proceeding with lease negotiations. While generally non-binding, it represents a significant step in the negotiation process and helps establish clear communication between parties. The Letter of Intent Lease Proposal is particularly valuable in complex commercial leasing situations where parties need to document their preliminary understanding before proceeding with formal lease documentation.
Suggested Sections

1. Introduction: Identity of parties and their roles

2. Property Details: Clear description of the property being considered for lease

3. Commercial Terms: Proposed rent, lease term, and key commercial conditions

4. Timeline: Proposed timeline for negotiations and completion

5. Non-Binding Statement: Clear statement that the LOI is non-binding unless specifically stated otherwise

Optional Sections

1. Due Diligence Requirements: Used when specific due diligence conditions need to be met

2. Exclusivity Period: Used when parties want to negotiate exclusively for a period

3. Deposit Terms: Include when a deposit is required during negotiations

4. Confidentiality Provisions: Used when parties want to ensure confidentiality during negotiations

Suggested Schedules

1. Floor Plans: Preliminary plans of the property

2. Draft Heads of Terms: Initial draft of key lease terms

3. Property Information: Basic property information including EPC ratings and planning status

4. Supporting Documentation: Any relevant certificates, permits or property-related documentation

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈ˰æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions















Clauses


















Industries

Landlord and Tenant Act 1954: Core legislation governing the relationship between landlords and tenants, particularly regarding security of tenure for business tenants

Law of Property Act 1925: Fundamental property law legislation that governs real property in England and Wales, including leasehold interests

Landlord and Tenant (Covenants) Act 1995: Legislation governing the enforcement of covenants in commercial leases and the assignment of leases

Contracts (Rights of Third Parties) Act 1999: Legislation that may affect how third parties can enforce terms of the lease agreement

Land Registration Act 2002: Legislation governing the registration of property interests and the operation of the Land Registry

Law of Property (Miscellaneous Provisions) Act 1989: Contains requirements for the execution of deeds and formal requirements for contracts relating to land, particularly Section 2

Unfair Contract Terms Act 1977: Legislation controlling the use of exclusion and limitation clauses in contracts

Consumer Rights Act 2015: Legislation protecting consumer rights, relevant if the lease involves residential property

RICS Guidelines: Professional standards and guidelines set by the Royal Institution of Chartered Surveyors for property transactions

Local Planning Regulations: Municipal or local authority requirements affecting property use and development

Energy Performance Certificate Requirements: Regulations requiring the assessment and disclosure of property energy efficiency

Health and Safety Regulations: Various regulations ensuring the safety and wellbeing of occupants in leased properties

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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