Hi my partner and I are looking at purchasing a restaurant. It’s a lifelong dream. My husband is a chef with over 15 years experience and I have run restaurants for over 10 years. We are very experienced and feel that this is the right step for us. We have found a restaurant that is up for leasehold and we have started going ahead with the sale, however we are finding the whole ‘heads of terms’ mind boggling as we are just not sure what we should be pushing for. Ok... so some information about this business! It is a 30 seater restaurant in a vibrant coastal town. It’s £90,000 to purchase the leasehold with an annual advertised rent of £8000. It’s currently number 1 in the area and they are making a net profit of £80,000. We are looking at continuing under the same branding doing very similar food and not overwhelmingly changing the consept when we first go in. As it will be a new lease the landlords terms are now: Lease term: 10 years with a 7 year break clause. Rent £8,400 per annum year one, increasing to £9,500 per annum thereafter Initial Rent payment 6 months in advance, 3 monthly thereafter. Repair Proportional full repairing, tenant’s fair contribution = 1/3 Buildings Insurance Landlord to insure and reclaim proportion (1/3) from the tenant Rent review 3 yearly upward only to Market Value Legals Each party to bear their own, the vendors will pay for the landlords legal costs. The landlords have requested a deposit of 6 months, to be held for the duration of the lease. Does all this sound reasonable? We are slightly concerned about the initial rent increases in the first 2 years and then 3 yearly and also the 1/3 contribution to full repairs. What do you all think? Thanks in advance!