Document background
The Preliminary Lease Agreement is commonly used in England and Wales when parties wish to secure basic terms of a lease arrangement while finalizing detailed negotiations. This document typically precedes the formal lease agreement and includes essential information about the property, proposed rental terms, duration, and any specific conditions that must be met before the formal lease can commence. It provides security for both parties during the negotiation phase and helps prevent either party from withdrawing without valid reason. The agreement is particularly useful in commercial property transactions where detailed due diligence and fit-out works may be required before the formal lease can be executed.
