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    • seasonalbiz
    • By seasonalbiz 3rd Dec 17, 6:31 PM
    • 57Posts
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    seasonalbiz
    Business lease.
    • #1
    • 3rd Dec 17, 6:31 PM
    Business lease. 3rd Dec 17 at 6:31 PM
    There doesn't seem to be a definitive place to post this question so apologies to the mods.... please move if appropriate.

    I have a lease due to expire on my business premises, the landlord and I have agreed to extend, and the lease agreement is fine... however negotiating the lease was horrendously expensive and the landlords solicitor wants £1500 to do the paperwork and landlord wants me to pay half.

    This seems ridiculous as all that needs changing in the lease is the dates. How can this warrant £1500.

    I don't understand why we cannot just alter the dates ourselves then sign the document in the presence of a solicitor... if anyone could explain the need for £1500 worth of costs, it would be much appreciated.
Page 1
    • anselld
    • By anselld 3rd Dec 17, 7:09 PM
    • 5,429 Posts
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    anselld
    • #2
    • 3rd Dec 17, 7:09 PM
    • #2
    • 3rd Dec 17, 7:09 PM
    Last one I did (as a Landlord) cost me £1000 for the legals only. I paid my own legals. The T had their own solicitor at their own expense.

    You could probably do yourselves if you know what you are doing but that sounds unlikely. The new lease also needs to be registered at Land registry.

    I would suggest you get your own solicitor and respectfully decline to pay for the Landlord's one.
    • seasonalbiz
    • By seasonalbiz 4th Dec 17, 12:57 AM
    • 57 Posts
    • 8 Thanks
    seasonalbiz
    • #3
    • 4th Dec 17, 12:57 AM
    • #3
    • 4th Dec 17, 12:57 AM
    Thanks for your reply. It just seems like a lot of money for (what seems like) very little work.

    The first and current lease cost us both many thousands of pounds, all we need to do is extend it, the document itself needs the amendment of date only. I would just like to understand why from a legal perspective, we need anything more than to change dates and re-sign... which would surely only require a notary solicitor present to confirm both parties were present when the agreement was made.
    • anselld
    • By anselld 4th Dec 17, 7:13 AM
    • 5,429 Posts
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    anselld
    • #4
    • 4th Dec 17, 7:13 AM
    • #4
    • 4th Dec 17, 7:13 AM
    Like I said it needs to be registered. There may need to be other legal notices concerning the Landlord and Tenant Act 1954. I don’t know the full extent, but then I am not a Solicitor.

    You are paying for knowledge, not for effort. Solicitors always seem expensive for what they actually do but you pay for the protection of your own interests.

    it is normal for a residential tenant to pay the landlords costs in a residential lease extension, but I don’t think that is the case in Commercial.
    • da_rule
    • By da_rule 4th Dec 17, 10:01 AM
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    da_rule
    • #5
    • 4th Dec 17, 10:01 AM
    • #5
    • 4th Dec 17, 10:01 AM
    As has been said, there may be contracting out notice under the Landlord and Tenant Act to be drafted and served. If the term of the lease is over 7 years it will be registerable (although this is normally the tenants job).

    Unfortunately it isn’t just a case of changing the dates in most cases. The solicitor will need to check the freehold title to ensure that there haven’t been any changes that could affect the lease. They will also need to check the lease for references to repealed/replaced legislation.

    Also, if this is what the landlord wants in order to grant the lease then I can’t really see that you have much of a choice. To be honest, £1,500 for a commercial lease doesn’t seem that bad. I’ve seen far higher. And I’ve seen landlords charging for surveyors etc too.
    • seasonalbiz
    • By seasonalbiz 4th Dec 17, 11:46 AM
    • 57 Posts
    • 8 Thanks
    seasonalbiz
    • #6
    • 4th Dec 17, 11:46 AM
    • #6
    • 4th Dec 17, 11:46 AM
    As has been said, there may be contracting out notice under the Landlord and Tenant Act to be drafted and served. If the term of the lease is over 7 years it will be registerable (although this is normally the tenants job).

    Unfortunately it isnít just a case of changing the dates in most cases. The solicitor will need to check the freehold title to ensure that there havenít been any changes that could affect the lease. They will also need to check the lease for references to repealed/replaced legislation.

    Also, if this is what the landlord wants in order to grant the lease then I canít really see that you have much of a choice. To be honest, £1,500 for a commercial lease doesnít seem that bad. Iíve seen far higher. And Iíve seen landlords charging for surveyors etc too.
    Originally posted by da_rule
    Yes, there were considerable costs when the original lease was taken out, surveyor costs etc etc. Now its just a renewal for a further 1-2years.

    Was just hoping that as we already established in the building, no issues with rent payments for the past tenancy term, things could be done at a cost which would reflect... but from the info posted I guess not.

    Thanks for the replies.
    • daveyjp
    • By daveyjp 4th Dec 17, 12:24 PM
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    daveyjp
    • #7
    • 4th Dec 17, 12:24 PM
    • #7
    • 4th Dec 17, 12:24 PM
    A renewal for a further 1-2 years?

    This isn't therefore a lease renewal as that needs to be a fixed term.

    If you want to continue on existing terms for a short period you and the landlord can agree not to do anything and hold over on existing terms (assuming the lease is within the 1954 Act).

    This can generally continue until either serves notice to either vacate or enter into a new formal lease arrangement.
    • davidmcn
    • By davidmcn 4th Dec 17, 12:39 PM
    • 6,279 Posts
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    davidmcn
    • #8
    • 4th Dec 17, 12:39 PM
    • #8
    • 4th Dec 17, 12:39 PM
    it is normal for a residential tenant to pay the landlords costs in a residential lease extension, but I donít think that is the case in Commercial.
    Originally posted by anselld
    Agreed - in ye olden days tenants may have paid the landlord's legal costs, but I've rarely seen it recently.

    So I think the negotiation stance ought to be "why on earth am I paying your legal fees at all" rather than haggling about the amount of them - and as above, why sign anything at all if it's just being held over for another year or so?
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