Why (or when) someone would need this service?
A freehold owner (landlord) may require this service when a new lease is granted to a tenant or when that tenant’s lease comes up for renewal. Sometimes a freeholder who has been running a business from the property may wish to sell the business and grant a new lease to the purchaser.
We are also frequently instructed by commercial tenants to act on their behalf on such matters. For further information read about our service for tenants.
How does the process work/what are the steps?
On the grant of a new lease the landlord and tenant have usually agreed outline terms either directly, or with the assistance of a lettings agent. Each party appoints its own solicitor. The landlord’s solicitor provides replies to enquiries and a draft lease prepared in accordance with the Heads of Terms. A surveyor may be required to prepare a plan. The terms of the lease are negotiated and finally the lease is entered into with the landlord keeping a copy for future reference. On completion we collect rent and other money due when the lease commences.
In the case of lease renewals there may be a requirement to serve a notice on the tenant under the provisions of the Landlord & Tenant Act 1954 which grants security of tenure rights (which means that the lease will not automatically end when it expires) to many commercial tenants. If terms cannot be agreed, we can assist with the statutory procedure to resolve the matter through the Courts, or with the help of a professional arbitrator appointed on Court terms under the PACT Scheme (Professional Arbitration on Court Terms).
How long does it take?
A typical transaction should take place within four to six weeks with willingness on both sides. If there is a dispute in a lease renewal case which has to go to Court then the matter may take several months to resolve. In the meantime the tenant will continue to occupy the property on terms governed by statute or otherwise as agreed with the landlord.
Is it expensive? How do the costs work?
On the grant of a new lease we would ordinarily estimate our charges based on the value of the rent, wherever possible agreeing a fixed fee. Any time spent on negotiations of principal terms or in litigation aspects relating to the lease renewal process would be charged on an hourly charging rate subject to best estimates given in advance.
What are the things people should consider before calling?
In lease renewal cases we would like to see a copy of the lease as soon as possible and have the other party’s details. If any notices have been served under the Landlord & Tenant Act then it is imperative that we see them.
Why are Grant Saw the best people for the job?
We have a team of lawyers able to deal with the transaction and also litigation lawyers able to take any dispute to Court on a lease renewal.