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Corporate and Commercial 2024 Deal Highlights 

Posted on: January 30th, 2025 by Hugh Dineen-Lees

Our Corporate and Commercial Team completed an impressive 30+ M&A deals for our clients last year, with around 20% of those with a deal value in excess of £10m. The team has seen a strong start to the year and we look forward with confidence to the rest of 2025.

Head of Corporate and Commercial Jeff Rubenstein commented ”M&A activity shows optimistic signs of growth in 2025. Our clients anticipate more favourable macroeconomic conditions, especially in our sweet spot of owner managed SME businesses, and we’re well placed to assist them in their ambitions.”

Corporate and Commercial 2024 Deal Highlights

Dominic Holden comments on DeepSeek and data protection in The Lawyer

Posted on: January 29th, 2025 by Hugh Dineen-Lees

With Chinese AI platform DeepSeek rapidly becoming the most downloaded free app in the UK and the US, Director Dominic Holden comments on the potential cybersecurity and data protection concerns, in The Lawyer.

Dominic’s comments were published in The Lawyer, 28 January 2025, and can be found here.

“DeepSeek’s privacy policy makes clear that they will collect your personal data, use it for a broad range of purposes and store it in China. This data is very valuable especially when provided at scale by thousands of users. The same concerns which gave rise to the proposed TikTok ban seem to apply here.

“With China’s national security laws obliging Chinese firms to share data with government agencies, users cannot know what will ultimately become of their data or how it might be used. Great care should be taken by users in deciding what to share with the platform.”

Jake Cohen recognised in The Lawyer Hot 100 2025

Posted on: January 28th, 2025 by Natasha Cox

Senior Associate Jake Cohen has been featured in the 2025 edition of The Lawyer Hot 100. This highly anticipated annual list recognises the successes of lawyers from in-house, private practice and the Bar, as well as those who are shaping the legal profession. The 100 lawyers on the list are selected for the excellent work they are doing at the present moment, with talented rising stars rubbing shoulders with eminent lawyers who have years of success behind them.

Jake’s entry highlights his ground-breaking work in the field of sports law, with The Lawyer noting that “Cohen has been advising many athletes since they were academy players and the trust relationship he has with these high-net-worth individuals is such that word of mouth regularly brings new instructions — such as a popular grime artist who is now on the books. Institutional relationships with clubs complement the work for individual athletes: new American owners are another big client base. There’s plenty more market share to go at. This team is set to grow and grow.”

Commenting on his recognition, Jake said: “I’m delighted to be included in a list filled with so many brilliant colleagues who are doing genuinely incredible work. Any personal recognition I receive is a direct result of being very lucky to have an incredible team at Lawrence Stephens – Mo Pasricha, Will Bowyer, Angelique Richardson, Andy Wallis and Anna Chasioti-Metson) and amazing clients who have trusted us with the privilege and responsibility of advising them.”

For more information on the work of our Sports and Entertainment team, please see here

Matt Green provides insights on bitcoin recovery to Thomson Reuters

Posted on: January 27th, 2025 by Hugh Dineen-Lees

In a recent article published by Thomson Reuters, Matt Green, Head of Blockchain and Digital Assets, explores the topic of recovering lost Bitcoin. Alongside his co-authors, Brian Mondoh, Barrister at Titan Chambers, and Marcin Zarakowski CEO of Token Recovery, Matt addresses the common belief that Bitcoin is a decentralized network and explains how recent developments have made it possible to recover lost Bitcoin assets.

The article highlights two primary scenarios for losing Bitcoin: theft or scam, and losing access to private keys or seed phrases. They delve into the Digital Asset Recovery (DAR) process on the BSV blockchain, which allows for the reassignment of lost or stolen digital coins through valid court orders.

By ensuring compliance with court orders, the BSV network can freeze and reassign assets to their rightful owners, making the recovery process more efficient and cost-effective.

Read the full article here.

Matt Green presents evidence to Property (Digital Assets etc) Bill Special Public Bill Committee

Posted on: January 23rd, 2025 by Hugh Dineen-Lees

Head of Blockchain and Digital Assets, Matt Green, recently submitted evidence to the House of Lords Special Public Bill Committee on the Property (Digital Assets etc) Bill. 

Matt argued that the Bill is both necessary and effective. He suggests that legislation, as opposed to common law, would provide the judiciary and policy makers with the confidence to apply property right principles to a new asset class – which is vital for consumers and financial institutions who are increasingly reliant on digital assets. Matt further argues that the Bill prescribes a negative definition which allows for things not yet created or not easily defined as capable of inclusion – providing additional flexibility to policymakers.

He notes that the Bill is a response to nervousness in the judiciary in deviating with established definitions of property, and that the wording is the door ajar to give decision makers the freedom to create new asset classes where required, without falling foul of common law principles.   

Discussing the Bill’s potential for negative or unexpected consequences, Matt warns that the wide wording of the Bill may open the floodgates and policy must therefore be carefully considered and robustly drafted. He also notes that monitoring the benefits and drawbacks of the Bill must be considered on an ad hoc basis by policy makers, to prevent any unexpected consequences.

In all, he senses that although there are more pressing matters at law, including (i) liability of decentralised entities, and liability of coders/ software developers (ii) regulation of digital assets, and the rules of engagement and (iii) the effectiveness of the Economic Crime and Corporate Transparency Act (2023), the Bill, of a version of it, must be passed to give confidence to the market and to show this jurisdiction is taking digital assets seriously.

In relation to improving the Bill, Matt argues as to why the chosen thing should be an object of personal property rights – suggesting it may be considered as heavy handed. He also notes that it may be useful to include some non-determinative wording as part of this legislation to help guide decision makers when considering property rights.

Click here to read Matt’s evidence in full.

Three Lawrence Stephens directors ranked in the 10th Edition of Spears 500

Posted on: January 23rd, 2025 by Hugh Dineen-Lees

The latest edition of the Spear’s 500 is out now and we’re delighted to report that Goli-Michelle Banan, Lawrence Kelly and Stephen Messias have been included.

This is the 10th edition of the Spear’s 500, which is the original and most in-depth guide to advisers to ultra-high-net-worth individuals and family offices. The rankings are compiled by the Spear’s Research Unit and are based entirely on merit.

Congratulations to all those included on this recognition of their expertise and dedication to clients.

Swift completion of £5.9million loan secured over prime residential blocks

Posted on: January 20th, 2025 by Hugh Dineen-Lees

In a recent financial transaction, a £5.9 million loan was secured over three multi-unit residential blocks located in London and Hemel Hempstead. This deal involved multiple linked refinancing transactions of the commercial elements, showcasing the complexity and efficiency of the process.

Anna Christou represented YBS Commercial Mortgages, while Paul Marsh acted for the Borrower. The transaction was completed within an impressive nine working days from the issuance of the Offer, highlighting the dedication and expertise of the teams involved.

A special mention goes to Katie Peck and Amy Bristow, at YBS Commercial Mortgages, whose pivotal role ensured the smooth and timely completion of this significant transaction.

This achievement underscores the importance of collaboration and precision in high-stakes financial dealings, setting a benchmark for future transactions.

Dominic Holden comments on the potential cybersecurity risks surrounding RedNote and TikTok, in Yahoo! News

Posted on: January 15th, 2025 by Natasha Cox

Director Dominic Holden comments on the potential cybersecurity and data protection risks of downloading RedNote, the social media platform which users are downloading before the potential US TikTok ban, in Yahoo! News.

Dominic’s comments were published in Yahoo! News, 14 January 2025, and can be found here. 

“Like TikTok, RedNote is owned by a Chinese company which potentially raises the same privacy and data concerns that led to TikTok’s possible ban. 

“Whilst the app itself does not appear to be dangerous, users concerned about their data privacy and how their data is to be used by RedNote, may be slow to adopt it until more is known

“There is also the further risk that as RedNote gains popularity, as a Chinese-owned company, it too may need to deal with the same regulatory issues TikTok has faced. Failure to do so could result in a future ban or legal action against RedNote.”

For more information on our technology disputes practice please click here

Danny Schwarz and Sophie Levitt discuss how the rise in NICs will affect property investors and landlords, in FT Adviser

Posted on: January 13th, 2025 by Natasha Cox

Head of Commercial Real Estate Danny Schwarz and Solicitor Sophie Levitt discuss how the increased rate of employer Class 1 national insurance contribution rates will impact property investors and landlords.

Danny and Sophie’s article was published in FT Adviser, 13 January 2025.

NIC Rate Hike: UK businesses brace for landlord and tenant turmoil

Rachel Reeves presented her Autumn Budget 2024 to Parliament on 30 October, to a mixed reception. One of the most controversial changes announced was that the government will be increasing the rate of employer Class 1 National Insurance Contribution (NIC) rates from 13.8% to 15%. The current rate of 13.8% is payable on the amount that an employee’s earnings exceed the secondary threshold of £9,000 per year/£175 per week. However, the increased rate will be 15% and the secondary threshold will be reduced to £96 pounds per week/£5,000 per year. These changes to employers NIC rates will come into effect on 5 April 2025, however are already posing concerns for the UK’s retail and hospitality sector.

While the increase in employer NICs aims to raise revenue for vital services, such as the NHS, and may increase funding for contributory benefits, such as the State Pension, the measure could have a profound effect on retail and hospitality businesses due to the increasing costs such businesses face and may result in shop closures, and others feeling the strain.

As a result of these changes, it is vital that property investors and landlords consider how these measures will impact their buying strategies, and tenants may well consider renegotiating their lease agreements to offset the higher operational costs which may otherwise impact their businesses.

For landlords and tenants alike, these reforms pose a number of challenges.

Operational costs

The prospect of raising employer National Insurance costs could prove to be a major setback for businesses. As a result of these reforms, businesses could be forced to face higher operational costs due to increased NICs, which would reduce their profit margins and place a greater strain on their livelihoods. For instance, it has been estimated that Tesco alone could face a £1 billion pound increase in its National Insurance bill over the course of this parliament.

Smaller and medium-sized enterprises (SMEs) are expected to be the most severely impacted as a result of these changes. SMEs often operate on tighter profit margins and many such businesses will therefore be forced to decide whether to fund the higher NICs by operating on reduced profits, cutting back on expenses or increasing their prices.

As a result, a phased introduction of the NIC threshold may be a better way for businesses to absorb the costs without passing them on to consumers in the form of higher prices.

Price increases

If a retail business opted to increase their prices of goods and services to offset the higher costs, consumer spending and demand could also be impacted as a result of the NIC hikes. Higher prices could exacerbate the cost-of-living crisis, making everyday items more expensive for shoppers.

It therefore comes as no surprise that more than 70 of Britain’s largest retailers have signed an open letter to warn the Chancellor that the NIC hike may lead to price increases and job losses throughout the high street. Some of the signatories included Aldi, Lidl, Boots, Ocado, Morrisons, Greggs and JD Sports – all of whom share concerns about the viability of such proposals.

Lease agreements

Business tenants who face the higher operational costs from the increased NIC rates may also seek to renegotiate their lease terms as a result of these changes. This could potentially lead to more flexible or reduced rent agreements since landlords are likely to be reluctant to lose longstanding tenants and will want to avoid being left with vacant properties and no rental income.

There are several ways for landlords to offer incentives and concessions to tenants to help them through this new financial burden. Temporary rent reductions could help tenants manage their cash flow during challenging times. Landlords could otherwise offer reduced rent for early renewal, waive certain fees or provide additional services such as maintenance.

Consequently, the terms of the lease could be made more manageable for tenants.

Rent arrears

Moreover, under the strain of these measures, certain landlords may also be less willing to renegotiate their lease terms and tenants may struggle to absorb the additional costs. Tenants, particularly in the retail and hospitality sectors, may be unable to generate enough income to meet their rent obligations. This could lead to higher rates of tenant defaults, leaving landlords with no choice but to forfeit their leases and to re-market the property. If landlords were left with no rental income, this would place a further strain on their finances.

There would also be additional expenses including administrative costs and legal fees when dealing with tenant defaults.

The fact that the British Retail Consortium is seeking a meeting with the Chancellor to discuss their concerns about the increased NIC rates, is proof that the scale of the new costs has the potential to cause severe financial hardship across different businesses.

Property transactions

The hike in NIC rates could affect the overall cost structure of property transactions and lead to higher property prices for buyers and sellers. Buyers may face higher purchase prices, which can affect affordability and demand in the property market. This could create a more challenging environment for property transactions, with reduced demand leading to slower market activity. 

If property investors and developers must operate on reduced profit margins, therefore, certain projects may seem less attractive or viable. This could lead to a decrease in the number of new development projects.

Higher NIC rates would also likely lead to increased labour costs for property investors and developers. This would inevitably make construction and development projects more expensive, potentially leading to higher prices for new properties.

Additionally, higher costs may be reflected by the fees of the professionals who are involved in the development projects, such as surveyors, architects and contractors.

Reduced investment

With increased costs due to higher NIC rates, landlords and tenants may also reduce investments in property improvements, expansions, or new technology, potentially slowing growth and innovation in the sector. The NIC rate hike has the potential to exacerbate economic uncertainty and make buyers, sellers and investors more cautious.

It is highly likely, therefore, that the changes will affect the overall health of the property market and have a significant knock on effect on the UK’s retail and hospitality sector.

Potential for legal disputes

Unsurprisingly, therefore, changes implemented as a result of the Budget could lead to legal disputes over lease agreements, employment terms and other obligations as parties adjust to the new financial landscape. There is also potential for businesses to struggle to comply with these new NIC regulations, which could lead to disputes with HMRC over unpaid contributions or penalties for non-compliance.

It is vital that businesses stay updated with the latest NIC regulations to ensure that they remain complaint. Payroll systems will need to be reviewed and updated to reflect the changes in the NIC rates. Compliance will reduce the risk of disputes arising from regulatory issues and will ensure a smoother operation of business.

Navigating the increased secondary NIC liability

As a result of Reeves’ proposals, the UK government estimates that 940,000 employers will face an increased secondary NIC liability. It is therefore inevitable that businesses across the UK and especially SMEs are feeling the pressure of this financial burden. It is essential for businesses to consider a variety of cost saving measures and to save price increases and redundancies as a last resort.

Landlords must also take a balanced approach and agree to renegotiate their lease agreements with loyal tenants if it is reasonable to do so. Landlords may be able to offer more flexible payment plans or allow temporary reductions with the agreement to recoup the difference at a future date.

However, maintaining open and transparent communication is fundamental.

Landlords and tenants should discuss the financial challengers together to find mutually beneficial solutions. By adopting this strategy, landlords can help their tenants through financial hardship whilst maintaining occupancy and fostering positive landlord-tenant relationships.

Looking ahead

Unsurprisingly, the proposed NIC hikes has provided cause for concern for many UK businesses in the retail and hospitality industry. From the impact on operational costs to the risk of litigation, there are a plethora of factors that must be considered if businesses are to weather the storm and remain both profitable and compliant.

In order to navigate these choppy waters, it is therefore vital that businesses seek tailored legal advice concerning their employment obligations and property agreements to ensure that they are braced for the upcoming changes and able to tackle the issues head on.

For more information on our Commercial Real Estate services, please click here. For our services in the Retail and Hospitality sector, click here

 

Abtin Yeganeh comments on the Renters’ Rights Bill capping up-front payments for renters

Posted on: January 13th, 2025 by Natasha Cox

Director and Head of Property Litigation Abtin Yeganeh comments on a new provision of the Renters’ Rights Bill making it illegal to ask tenants to pay more than one month’s rent plus a six-week deposit up front.

Abtin’s comments were published in Metro, 10 January 2025, and can be found here.

Will the new legislation work?

So, why have landlords been allowed to ask for such vast amounts upfront until now?

As Abtin Yeganeh, Director and Head of Real Estate Disputes at Lawrence Stephens tells Metro, landlords often use these hefty deposits for peace of mind when, for example, tenants might not have a UK-based guarantor.

‘In order to tackle issues of bad credit and/or renting to overseas individuals, landlords often seek rent in advance as additional financial security. This can amount to six months’ rent in advance,’ Abtin details.

But as he believes, we’ll have to wait and see how it pans out – and whether landlords listen to the details of enforcement.

‘The outcome of these reforms is that tenants should, in theory, have more options when it comes to securing rental properties as they will not have to compete with prospective tenants who can pay a lump sum in advance. 

‘However, given that landlords have a choice as to who they want to take on as a tenant, it remains to be seen whether the proposed changes have the desired effect.’

For more information on our Real Estate Disputes services, please click here

Emma Cocker comments on managing discrimination and harassment in the workplace

Posted on: January 9th, 2025 by Natasha Cox

Senior Associate Emma Cocker comments on the legal action facing McDonald’s over allegations of widespread harassment and discrimination, and discusses employers’ obligations to protect their staff and workplace.

Emma’s comments were published in Business Matters Magazine, 7 January 2025, and can be found here.

“All employers have duties to protect their staff against discrimination and harassment in the workplace – obligations which apply regardless of whether people are engaged on a full-time, part-time or zero hours basis.

“However, with most McDonald’s workers being engaged on a zero hours basis, individuals will be acutely aware of their employment insecurity. They are also likely fearful of being subjected to detrimental treatment for raising complaints. The abuse which arises from the imbalance of power inherent in these types of workplace relationships can lead to significant liability for businesses, of which employers must be conscious.

“It would appear that McDonald’s still has a long way to go in providing a safe working environment free from discrimination and harassment. How they handle these claims will likely be carefully scrutinised. The longer businesses allow this kind of behaviour to persist, the longer the list of grievances and legal claims they will face.”

For more information on our Employment services, click here

Matt Green comments on the rise of Big Tech lawsuits in CDR Magazine

Posted on: January 7th, 2025 by Natasha Cox

Head of Blockchain and Digital Assets and Technology Disputes Matt Green comments on the rise in litigation against Big Tech companies, and explores how regulation must adapt to provide better protection and recourse for consumers.

Matt’s comments were published in CDR Magazine, 6 January 2025.

“There have been very few useful regulatory protections for consumers, although attempts have been made under financial promotions regimes.

“There is a severe lack of protections for consumers broadly when dealing with crypto assets, particularly at retail exchanges. Under recent case law, the trend is to treat crypto exchanges like banks, which themselves are governed following hundreds of years of banking law with consumer protection in place. 

“However, these laws cannot be applied to crypto exchanges given technical and operational differences. On that basis, crypto exchanges are given wide protections for how they custody and pool assets (tilting in favour of their own interests), but consumers are left without recourse where those exchanges are unwilling to help.”

For more inforamtion on our regulatory services and crypto practice, please click here