Lease renewal – Is a solicitor actually needed?

Lease renewal – Is a solicitor actually needed?

0:00 AM, 26th June 2025, About 3 weeks ago 7

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The property is a small commercial let and the current lease ends in December 2025.

The tenant wants to renew on the same terms. Other than a new rent amount and the dates involved, everything else is to stay the same. Originally went through a solicitor to agree the lease details, and both parties signed.

The same firm contacted (original solicitor has left). The new solicitor asked if a new lease is needed or the current one should just be extended.

They advise ‘The legal work will involve file-opening, contacting the Tenant’s solicitors and establishing whether they are similarly instructed, drafting the renewal lease, negotiating the same, agreeing the document and completing the same.’ Our legal fees for such a transaction is in the region of £1,250 plus VAT and disbursements but given the background I would say, the legal work involved will be in the region of £1,000 plus VAT and disbursements (minor I would expect – obtaining up to date title documents from HM Land Registry).

They also suggest the cost will be down to me, (even though tenant wants to renew) and of course the tenants will need to employ a solicitor to do the same.

This seems extreme given the circumstances (tenant has a small ongoing family business that just about ticks over and rent is minimal (rather have it let than stand empty).

Both tenant and I are wondering if this cost can be avoided/significantly reduced if I copy/ draw up the same lease, agree the new rent amount, agree the new break clause date (half way through the 5 year term as is now), agree the renewal start date (the day after the current one expired) and agree the end date. Once done, we can then just get a solicitor each to witness it as a signed ‘deed’ by each party.

Does anyone have any experience of this/similar?

Thanks,

Reluctant landlord


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JaSam

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8:31 AM, 26th June 2025, About 2 weeks ago

The first thing which you don’t mention is if the lease is inside or outside the LTA1954. I can only assume it’s not as there is no mention of the tenant serving a S26.

Either was it’s common practice for the tenant to cover their own legal fees and often the landlord too.

Personally I would shop around for a better rate that you have currently been quoted and negotiate the fees with tenant.

Graham Bowcock

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9:26 AM, 26th June 2025, About 2 weeks ago

I think those legal fees you have been quoted are pretty good and my advice would be to go with it.

We bought an agency where the owner and his clients had done their own thing, but we now steer all clients to solicitors for lease renewals, even though we are qualified chartered surveyors.

If the lease is for more than seven years then it needs to be registered at Land Registry, which is a job best done by a solicitor.

With my valuer's hat on, I see lots of home made leases and, quite frankly, many are useless. They can actually detract from the value of the property.

Freda Blogs

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10:15 AM, 26th June 2025, About 2 weeks ago

I agree with whats been said above.

You don't say how old the original lease is. Lease renewals (54 Act) are generally as-is 'save for rent and modernisation' (of certain parts of lease wording). Unless you are familiar with commercial property law, go with a suitably qualified solicitor. Not only are you buying their expertise but also their indemnity insurance if there is an issue with the lease.

It's simply a cost of doing business and a false economy not to do it. Having solicitors on board will likely pay you if there is a problem with the tenant or the lease further down the line - solicitors may be less willing (or more expensive) to help with a home drafted lease.

Judith Wordsworth

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10:21 AM, 26th June 2025, About 2 weeks ago

You don't need a solicitor if both parties are still happy with the Ts & Cs and only want the term and amount payable amended.

Re-type inserting the new details, sign (witnessed) and then landlord dates.

To register, if lease term is +7 years is a simple matter. You will also need to complete Form ID2 which sadly means you have to use a solicitor or conveyancer or barrister to verify your identity. HMLR removed Form ID4 last year (misguidedly in mho)

Reluctant Landlord

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11:04 AM, 26th June 2025, About 2 weeks ago

All
Original (current lease) is for 5 years and outside LTA'54. Expires Dec 2025. Was drawn up originally by a solicitor. As far as I am aware as outside the LTA then then S26 does not apply.

The tenant has simply come to me and asked for a renewal and details about this in a bid so this can be agreed now ready to sign in December. They are looking to have security and know in advance what the rent will be so they can make plans - perfectly understandable.

New lease will be for again 5 or 6 years (definitely not over 7). I have asked them to decide. It makes no difference to me as have absolutely no plans for the building other than continuing to let as we do. The building supports two family businesses make a living.

The plan is literally to re type the current lease inserting new date details and rent amount only.

JaSam

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11:26 AM, 26th June 2025, About 2 weeks ago

Since your current lease and next lease is/will be outside of the act the tenant has fewer protections you have a stronger hand. If you are happy with the current lease wording/terms that was previously professionally drafted then your suggestion to carry it forward is in my view a low risk option if both parties agree; however that said I personally would find a different firm for extra checks and indemnity insurance as previously mentioned.

Kate Gould

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17:14 PM, 26th June 2025, About 2 weeks ago

If you want the new lease to be outside the business security of tenure provisions as well, then you need to make sure you serve the notice and get the tenant's confirmation in reply to meet the contracting out requirements. Getting solicitors to make sure that is done correctly might in itself be worth the £1,000 + VAT that you've been quoted. Your solicitors will suggest to the tenants that they get their own legal advice, but they can ignore that and save the cost if the lease wording hasn't changed. However, the tenants should check, e.g. by using the HMRC online SDLT calculator, whether or not they have to file a Land Transaction Return and pay SDLT.

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