Commercial Lease Solicitors Fees
In this blog we look at the costs involved when acting on behalf of the landlord and the tenant for a commercial lease agreement and how the transaction will proceed.
What are the costs when acting for the Landlord?
The costs for drafting, negotiating, agreeing and then granting a Lease to a Tenant will be dependent on a number of factors, such as:
- the level of rent
- the length of the lease
- whether or not there is a service charge
- will a guarantor be required
- is there a break clause
- is there a rent review
As a Landlord, you may require the Tenant to provide additional security such as a Rent Deposit Deed.
In all cases, a small disbursement will be incurred in connection with providing the Tenant’s solicitors with a copy of your Land Registry title (if the property is registered).
What are the costs when acting for the Tenant?
The costs in negotiating, amending and completing the Lease (which will have been drafted by the Landlord’s solicitors) will also be dependent on the factors above. In addition, and as the Landlord’s solicitor prepares the lease in the first instance, it will need to be amended to ensure it is more tenant friendly.
An Agreement for Lease may also be required, which is to be entered in to in advance of the Lease, and is usually subject to conditions being satisfied, namely, the obtaining of planning permission for the use permitted by the Lease, or the satisfaction of any works to be undertaken by either the Landlord or the Tenant.
Following completion of the Lease, you may wish to fit out the Premises and a Licence for Alterations will be required and this will need to be negotiated and must be completed simultaneously with completion of the Lease.
The Landlord may also require a Tenant to provide additional security such as a Rent Deposit Deed.
In all cases, in addition to search fees, which will be required if you are to enter into a lease for a term of more than 3 years, you will have to pay for other disbursements including SDLT (dependent on the level of rent) and Land Registry fees where the lease term is for 7 years or more. Further, and in order to protect your interest in the Lease, and where the Lease term is for less than 7 years, we will register a notice against the Landlord’s title to protect your position. There will be a £20 fee for this.
What searches will you need?
We will undertake local, drainage, environmental and chancel searches. We will also carry out specific searches where you are leasing Premises in certain areas, for example, in Cheshire, a Cheshire Brine Search is required.
How will the transaction proceed when acting for the Landlord?
We will draft the Lease and, if required, an Agreement for Lease, Rent Deposit Deed and Licence for Alterations and will reply to any specific enquiries raised by your Tenant’s solicitor. We will also consider whether we need to reserve any rights for your benefit over the Premises and rights for you to use your adjoining land without restriction and to build on it, as well as a right to enable you to , enter the Premises to ensure that the Tenant is complying will all its obligations in the Lease.
How will the transaction proceed when acting for the Tenant?
We will negotiate and amend the Lease and will also raise pertinent enquiries of the Landlord. Further, we will carry out a detailed investigation of the title to the land that you are leasing. As a result of our title investigation, we will be in a position to consider if any additional rights need to be granted to you in the Lease to enable you to have full enjoyment of the Premises, including car parking, rights of way and rights for services.
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Commercial lease agreements are complex. Blackstone Solicitors have a wealth of experience in drawing up lease agreements. Whether you’re a landlord or a tenant, getting in touch with us could not be easier. Simply give us a call for a free, no obligation initial discussion on 0161 929 0121 or complete the online enquiry form on this page to allow a member of our commercial property team to contact you.