Ask The Experts - Lease Negotiations

Answer

In relation to legal costs, both parties would normally pay their own legal fees and the lawyers concerned would normally have confirmed with the parties who they were representing and who would be responsible for their fees. Your lease may also have a clause attending to who should pay legal costs. On the matter of SDLT, I am afraid that is a tax payable by the tenants when taking out a lease. In respect of dilapidations, there will almost certainly be a clause in your lease attending to this matter, and making it your responsibility for required works and most leases would go on to note that the tenants should also pay all related and properly incurred solicitors’ and surveyors’ fees.

The NHS recommend that doctors take leases where they are only responsible for internal repair, but they do not stop leases where doctors are responsible for full repairing liability and, in the market, there are a number of both style leases. In relation to lease renewal, if matters ended up in the Courts because parties could not agree, then traditionally the Courts would follow the previous lease. Thus, if you have a Full Repairing Lease now, one would normally expect to renew on a similar basis. On the matter of dilapidations, this will apply of course to the lease that has, or is about to end rather than any new lease and the works that a landlord can require to be done (and therefore in respect of which professional charges you may be able to pass on to the tenant) can only relate to the tenant’s liability.