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Thomas, Lawyer
Category: UK Property Law
Satisfied Customers: 7620
Experience:  BA (Hons), PgDip, Practising Solicitor
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In a commrtcial lease, for old tenant, does any payment for

Resolved Question:

In a commrtcial lease, for old tenant, does any payment for stamp duty nd to be paid to inland revenue? Who pays for this and also for new tenant?
Apart from getting lease prepared, are there any other exprnses i should be aware of?

If i am preparing lease myself, is the wording below ok?
Legal fees: 1200 inc of all expenses (towatds landlords costs of preparing lease)

Incase i dont have time to use solicitor, what wording should i use for legal fees?
Submitted: 5 years ago.
Category: UK Property Law
Expert:  Thomas replied 5 years ago.

Thanks for question.
When a lease is granted to a tenant the responsibility to submit the stamp duty return and the liability to pay any SDLT payable rests with the tenant under the lease.
If there was a stamp duty liability to pay under the old lease then it’s the responsibility of the old tenant.
If the new lease incurs a SDLT liability then it is the responsibility for the new tenant to pay the liability. If the lease is registrable at the land registry against the freehold title (ie. because the lease is greater than 7 years) then the tenant will not be able to register the lease without having an SDLT return confirming that HMRC have been informed of the transaction and therefore know that there is a liability to pay.
The wording is fine as to costs, but I would refer to it as a “lease preparation fee” rather than legal expenses (which arguably imply intructing a professional).
There aren’t really other expenses which you as landlord would have to pay. The Tenant would have to pay the costs of applying to register their lease (if applicable) at the land registry which is £50.00. They would also be well advised to carry out searches but that is their responsibility.
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