Guide

Lease renewal fees: solicitor and surveyor are two separate bills

Updated

Budgeting for a renewal on the solicitor's quote alone understates it. The rent, which is the number the whole exercise turns on, comes from somebody else.

Who does what

The solicitor
Establishes whether the tenancy is protected, advises on and serves or responds to notices, negotiates the terms of the new lease, issues or defends proceedings where needed, and completes and registers the new lease.
The surveyor
Advises on the open market rent for the new tenancy, assembles and tests comparable evidence, negotiates the rent with the other side's surveyor, and where necessary gives expert evidence on it.
Counsel
Instructed on opposed renewals and on points of difficulty. An additional cost to the solicitor's fee, not part of it.
The court, or a PACT appointee
Court fees on any application, or the fees of the arbitrator or independent expert if the parties refer the rent or the terms to PACT instead.

How the fees are usually structured

Legal work on renewals is commonly charged hourly, because how far a renewal runs is genuinely unpredictable at the outset. Many firms will nonetheless give a fixed fee for defined stages: reviewing the lease and reporting on security of tenure, drafting and serving a notice, or issuing protective proceedings. That structure is worth asking for, because it converts an open ended engagement into a series of decisions you control. Surveyors quote for the valuation and negotiation as a separate instruction, and their fee for giving expert evidence is separate again.

Making quotes comparable

  1. State the same facts to every firm: protected or contracted out, what has been served, whether the renewal is opposed, and where the rent has got to.
  2. Ask for stage fees rather than a single number, with the trigger for moving to the next stage identified.
  3. Ask specifically whether protective proceedings and any court fee are inside or outside the quote.
  4. Ask what the firm charges if the matter becomes opposed, so the step change is visible before it happens rather than after.
  5. Get the surveyor's fee separately, and ask whether it covers negotiation with the other side's surveyor or only the initial advice.

The thing worth spending money on early

On almost every renewal the highest value early spend is establishing the position accurately: whether the tenancy is protected, what the dates are, and what the rent is likely to be. Those three answers determine strategy, and strategy determines cost. Renewals become expensive when they are conducted reactively against deadlines, and the difference is set months before any dispute arises.

No body sets solicitors' or surveyors' fees for renewal work and there is no published scale, so this page describes what drives the fee rather than quoting one. Obtain written quotes for your own renewal, and see the stage by stage breakdown for what each part of the process involves.

Questions, answered directly

Do I need a surveyor as well as a solicitor for a lease renewal?

On a renewal where the rent is in issue, yes in practice. The solicitor conducts the statutory process and the lease terms; the open market rent is a valuation question answered by a chartered surveyor who assembles comparable evidence and negotiates it. They are separate instructions with separate fees, and the surveyor's fee for giving expert evidence is separate again.

Are lease renewal legal fees fixed or hourly?

Commonly hourly, because how far a renewal runs cannot be predicted at the outset, but many firms will fix a fee for defined stages such as reviewing security of tenure, serving a notice, or issuing protective proceedings. Asking for stage fees converts an open ended engagement into a series of decisions you control.

Who pays the costs of a lease renewal?

Each party normally bears its own professional fees on an unopposed renewal, and how costs are dealt with in contested proceedings is a matter for the court, where the losing party is generally exposed to the other side's costs. What a particular lease says about costs should be checked, and this is general information rather than advice on your tenancy.

A fee for your renewal, not a figure from an article.

Two minutes to set out the tenancy; commercial property solicitors quote you directly for the stage you are at.

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