04Legal — Model explainer
The sub-letting model, explained plainly.
BPS Lettings does not act as a conventional letting agent. We take the head lease ourselves and sub-let to the client. This page explains the full structure — end to end.
01The fundamental principle
BPS Lettings becomes the tenant on the head lease and sub-lets the property to the client.
This is not a nuance or a technicality — it is the core of how BPS operates. When a client instructs BPS to find commercial property, BPS goes to the market, identifies the right space, negotiates directly with the landlord, and then takes the head lease in its own name. BPS becomes the head tenant. BPS then grants a sub-lease to the client.
The client therefore does not hold a direct lease with the landlord. The client holds a sub-lease with BPS. BPS holds the head lease with the landlord. This is a deliberate, transparent structure — not a back-office arrangement — and it is disclosed prominently on every BPS communication.
02The contractual chain
Three parties. Two contracts. One clear chain.
Every BPS transaction follows this structure without exception.
Landlord
Grants the head lease
BPS Lettings
Takes the head lease, then sub-lets
Client
Holds a sub-lease, ready to trade
03How it works step by step
The lifecycle of a BPS transaction.
01
Client brief
The client instructs BPS with a property requirement — sector, size, location, budget, timescale. BPS is acting for the client from this point.
02
BPS goes to market
BPS uses its network and direct outreach to identify suitable properties, including off-market opportunities that conventional searches miss.
03
Negotiation
BPS negotiates heads of terms directly with the Landlord (or their agent). At this stage, BPS is negotiating as a prospective head tenant — not as an agent introducing a client.
04
Head lease granted
On exchange, the Landlord grants the head lease to BPS Lettings Ltd. BPS is now the legal tenant. The Client is not yet a party to any lease.
05
Sub-lease granted
BPS grants a sub-lease to the Client. The sub-lease sets out the Client's occupation terms — use, rent, term, break options. The Client now has a legally binding right to occupy.
06
Occupation and rent
The Client pays rent to BPS under the sub-lease. BPS pays rent to the Landlord under the head lease. The Landlord has no direct financial claim on the Client.
04Rent flow
How money moves.
Client (sub-tenant)
Pays sub-lease rent
To BPS Lettings
BPS Lettings (head tenant)
Receives sub-lease rent
Pays head lease rent
Landlord (freeholder)
Receives head lease rent
From BPS Lettings only
The Landlord has no direct financial claim on the Client. All rent obligations between Landlord and occupier are mediated through BPS.
05End of term
What happens when the lease ends.
Sub-lease expiry
When the sub-lease expires, the Client’s occupation right ends. Any dilapidations liability under the sub-lease is between BPS and the Client, and is set out in the sub-lease agreement. The Client is not exposed to the dilapidations position under the head lease (which is a matter between BPS and the Landlord).
Head lease surrender or renewal
BPS manages the head lease surrender, renewal, or break negotiation directly with the Landlord. If the Client wishes to continue in occupation, BPS will seek to renew or extend. If not, BPS deals with the Landlord’s dilapidations and redelivery requirements without the Client’s direct involvement.
06Further information
Questions about the model?
We are committed to transparency about how we operate. If you have any questions about the sub-letting model before instructing us, please get in touch — we will explain everything in plain terms before any documents are signed.