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Commercial Lease Calculator

 
 
 
(Please scroll to the end of the Calculator for full calculation details)

This Calculator is intended to help commercial property clients and agents to calculate the main legal costs and disbursements for acquiring a new commercial lease. It does not deal with an assignment of an existing lease. Please read the IMPORTANT NOTE below.

Clients and agents can view the progress of matters online. For other useful information go to FAQ Landlords and FAQ Tenants.

1. What is the commencing annual rent (ignoring any rent free periods)? £  
2. Is VAT payable on the rent?  
3. What is the term of the lease in years?  
  Does the lease make provision for an increase to an amount which is ascertainable at the start of the lease e.g. increasing by or to a fixed amount?  
  If so, how many such increases are there during the term?  
  In respect of the first increase, after how many years does this take effect?  
  What will be the new annual rent after the first increase?  
  In respect of the second increase, after how many years does this take effect?  
  What will be the new annual rent after the second increase?  
  In respect of the third increase, after how many years does this take effect?  
  What will be the new annual rent after the third increase?  
4.1 Will there be a Rent Deposit or other security?  
4.2 Is consent required from a Superior Landlord?  
4.3 Are there works to be carried out by the landlord or tenant as a condition of the Lease?  
4.4 Is the Lease outside the security of tenure provisions of the 1954 Act? Some leases are agreed on the basis that certain statutory rights of the tenant are excluded. A statutory procedure must be followed including the service of a notice and a declaration to be made.
5. Local search fee
 
This is the cost of a basic search at a local council and depends on the area in which the property is located. You can select a council from the drop down list or select other which gives an approximate cost of a search in other areas.
6. Drainage search
 
Drainage Search","This is the average cost of a drainage search of the local water authority.
7. Environmental search
 
Environmental Search","This is the average cost of a straight forward environmental search on the property. The exact figure will depend upon the type of search and the nature and size of the property.
8.
Stamp Duty Land Tax (SDLT)
 
This is a government tax based on the rent on new leases. Additional duty may be payable if you are also paying a premium, i.e. a capital sum to the landlord.

Please see NOTE below.

9.
Land Registry fee
 
Land Registry Fee","This is a fee charged by the Land Registry to register the new Lease. Leases must be registered if there is more than 7 years of the term unexpired when the Lease is granted or assigned.
10.
Legal fees
 
The figure for fees is an estimation of our anticipated fees for acting for the tenant on the acquisition of a new commercial lease and excludes VAT and disbursements. It does not include work in respect of related matters such as the acquisition of a business. If you let us know the specific circumstances of your transaction we will happily provide you with a written estimate of fees.
11. VAT on legal fees
 
This is the VAT charged on the Solicitor's Fee.
12. Other Costs
 
This is the average of other minor legal expenses likely to be incurred such as other searches and a bank transfer fee.
 
Total Costs
 
This is the approximate amount of legal costs and disbursements you will have to pay on a new commercial lease subject to the important note below and comments on individual items. It does not include non legal costs such as surveyors fees.

This is an indication of expected costs only. If you are interested in using our services, we will need certain details from you. Please fill in the form below and press the submit button. The information on this page will then be electronically mailed to us. Alternatively, if you prefer the human touch, please telephone us on 020 3178 3770 and we will discuss your requirements. You can also print this form on your printer using the print facility of your browser and fax or post it to us. Our contact details are shown at the bottom of the page. There is no obligation on you to use our services until we have sent to you a written quotation which you have accepted by signing and returning it to us.

Contact name:
Name of your business:
Address for correspondence:
Contact telephone number:
Contact fax number:
Contact email address:
Address of the property to be acquired:
Have Heads of Terms been agreed? If yes, please send a copy.
Yes
Estate Agent's name and address (if relevant):
Name of the Landlord if known:
Name and address of Landlord's solicitors if known:
What is your realistic timescale to complete the transaction? Please make your selection from the pull-down menu.
Please enter any particular instructions or matters which you would like us to know.
Please contact me by:
Telephone
Fax
E-mail

IMPORTANT NOTE: The calculation is not a quotation but is a guide to the likely level of legal expenses on the acquisition of a new commercial lease in England and Wales. The figures may vary according to particular circumstances of a given case. Please also specifically note the following points:

  • The SDLT and Land Registry fees calculation is based upon a standard letting of commercial premises and does not deal with special situations for example where there is special VAT treatment e.g. where the property is part residential and part commercial.
  • In the event that a premium (capital sum) is paid (which is rare these days where market value rent is paid) there may be additional SDLT and Land Registry fees.
  • There are time limits within which an SDLT Return must be submitted to the Inland Revenue in respect of any agreement for lease or lease. This is required whenever the lease is for 7 years or more or the NPV of the rental payments exceeds the 0% band.
  • There may be schemes which can be adopted to reduce the possible incidence of tax.
  • Written estimates for our legal fees are given on request subject to our normal terms and conditions.
  • More detailed information on SDLT and leases can be obtained from the Inland Revenue website.

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