New lease for shop premises - solicitors fees

[slclark17]

Hello there,

Can anyone advise on what amount of effort a solicitor would normally put into sorting out a lease for a tenant, and searches which should be done? I am going to have a new, 3 year lease for a small shop, it is with the owners not a sublease, and I need to pay only my own costs. Have had several quotes which vary quite a lot and I don't know what is important. If anyone has experience to share I'd much appreciate it!

One person advised such a lease would take 5-10 hours work at £175ph. A "full property search" would cost another £300-400 (I think this included a photographic survey but this might be extra), basic checks would cost £50.

A second (qualified only 3 years) expected 4-6 hours work at £150ph, and recommended a local authority search at £150-200. She didn't think a survey or other checks would be necessary.

A third expects only 2.5 hours work at £200ph, more if substantial negotiation or revision is required. Recommends a local authority search at £150, a chancel check at £15 and land charges at £10.

A fourth quoted £850 including negotiation, plus disbursements including about £400 for search fees.

Who would you go for?

Much obliged

Sarah

 

[kulture]

You need a good solicitor with commercial knowledge. It is impossible for us to recommend one of the above just on price. It is impossible to know what work is needed without knowing the heads of agreement and how much negotiating has been done or is left to be done. Further until you see lease and the details/problems that need to be re-written or removed it is impossible to say how many hours will be used.

It is better to go with the solicitor you feel more comfortable with, who has a background with commercial leases, and hopefully someone has recommended them.

 

[slclark17]

Thank you - that was quick! All of the above are commercial premises specialists. The heads of terms are being written now by the estate agent, hopefully based on my preferred terms, which were based on the model terms in the code for leasing business premises. She said the landlord was happy with these, beyond a few which are not deal-breakers.

Solicitor 1 recommended solicitors 2 and 3 (having quoted, it turned out he is the agent for the landlord but he's included for the sake of completeness). The fourth was a firm highly rated by the good lawyer guide, though the person approached was busy so it is a 3* junior person who would be doing the work. 1, 3 and 4 all provided helpful information though I couldn't really grasp what 3 was trying to explain to me about contract exchanges and he's sent me a whole load of stuff to sign so feel a bit pressured by him!

 

[mhall]

I would question the need for a property search, it depends on how much "belts and braces" you need. I'd rather spend that money on checking the details to make sure you will walk away cleanly when the time comes. You can spend whatever you want, just be realistic aboutthe areas you need to cover yourself with.

 

[deniser]

I would say under 5 hours is not realistic if they are doing the job properly.

Unfortunately with commercial leases, the issues are the same (except for rent review and registration which you won't have) as if you were taking a 25 year lease or if the rent was £100,000.

If they are commercial property specialists then the 3 year qualified one will be fine but not if they are general conveyancers. You don't need a more senior person for a single shop lease.

 

[Steve Sellers]

Hello there,
A third expects only 2.5 hours work at £200ph, more if substantial negotiation or revision is required. Recommends a local authority search at £150, a chancel check at £15 and land charges at £10.

That one looks about right. My pal is a commercial property lawyer (5 years qualified) and did a shop lease for a client of mine for around that figure.

As Kulture says you need one with commercial property experience. Ask about their experience.

 

[slclark17]

Goodness lawyers are slippery - have to ask a question about their experience three times and still not get a clear answer! Thank you all for your advice. Number 4 won it due to decent experience, reasonable hourly estimate and being clearest and easiest to speak to on the phone. Even though just realised her hourly rate and the number of hours she expects to do as mentioned on the phone equates to much more than the £850 quoted! Losing the will to live

 

[deniser]

being clearest and easiest to speak to on the phone.

That counts for a lot. If it comes to less than £1,000 plus VAT and disbursements then you are doing quite well.

If they know their stuff they will be saving you more than their fees by what they negotiate so don't worry. Conversely, going it alone (as many posters have subsequently realised to their cost) can cost you very much more in the long run.