HOTs are commonly drawn up by the landlord and tenant’s agent setting out the terms of the proposed agreement and are then used by the landlord’s solicitor as a template to draw up the lease. Negotiations to agree HOTs can take some time and they do not deal with every aspect of the proposed lease but they should set out the significant parts.
There is a Code for Leasing Business Premises approved by the British Property Federation, the Law Society and other institutions which contains requirements for HOTs by landlords adopting the Code but its use is voluntary and many leases which do not incorporate it are nevertheless approved.
With the current market conditions and the need to negotiate competitive terms, clients rely upon their agents to cover as many initial points of the lease as possible prior to instructing lawyers, as this will be the optimum time to leverage best terms.
Download a HOTs guide here.