Commercial lease renewal

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    Commercial lease renewal

    Help much appreciated. I’m due for the renewal of my commercial lease. When the lease was first drawn up 2 years ago, obviously I expected to pay some costs towards the legal fees. They are now asking for more money for the costs of the renewal before I’ve seen the new lease or signed is this normal practice and should I request seeing the contract and a invoice for the cost of the solicitor? They’ve not said what I’m paying if it’s half or if it’s the full cost just requesting £300 to paid so they can instruct the solicitor with moving forward with the renewal? Many thanks Claire

    Have the lease terms been agreed?


      I assume your lease is contracted out of ss24-28 LTA 1954. If not, they cannot claim fees. If it is, you may have to cough up unless the threat to leave is credible and you can deal with a dilaps claim.

      You should ask that the new lease is on the same terms as the existing. Have you agreed the new rent? £300 is not much for solicitors' fees.


        "I assume your lease is contracted out of ss24-28 LTA 1954. If not, they cannot claim fees. "

        There is nothing to prevent them from claiming fees (costs), but whether you have to pay the landlord's costs.

        Under Costs of Leases Act 1958, "Notwithstanding any custom to the contrary, a party to a lease shall, unless the parties. thereto agree otherwise in writing, be under no obligation ,to pay the whole or any part of any other party's solicitor's costs of the lease."

        It is not normal to pay in advance but the landlord's solicitors are likely to require an Undertaking on Costs from your solicitor. Your solicitor will want you to put them (your solicitors) in funds before giving the Undertaking on Costs. Unless otherwise agreed, the costs would be payable whether or not the matter proceeds to completion. It might be possible to get that agreed on the basis that no costs would be payable if the landlord withdraws for any reason.


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