Lawrence Stephens has advised high-end retailer MAKSU on the lease of their new flagship store at 96 King’s Road, London, marking the brand’s second UK location and a significant step in its international expansion.
Founded in 2019, MAKSU is a Spanish-Turkish luxury womenswear brand known for its bold prints, timeless craftsmanship and Mediterranean-inspired elegance. The opening of this new store follows the successful launch of their first UK store in Mayfair in 2024, and it reflects the brand’s growing global presence and commitment to establishing a strong presence in London’s fashion landscape.
With MAKSU’s new flagship store location on the iconic King’s Road, they are positioned at the heart of one of London’s most prestigious and iconic retail destinations. Although ongoing economic challenges and concerns surrounding the future of the UK high street, MAKSU’s expansion into this prime location highlights the resilience of the luxury retail sector and affirms London’s status as a thriving hub for high-end fashion.
This deal was led by Head of Retail and Director Nickhil Mandora, with support from Solicitor Mohammad Hammoud. The deal is a further example of Lawrence Stephens’ position as a leader in the retail sector, having also recently advised major premium retail brands including Arc’teryx and Salomon.
Nickhil Mandora commented: “MAKSU have found a stunning new home on the King’s Road in London and we are delighted to have assisted them on the latest stage of their European growth. Cadogan’s focus on top-tier brands in this area is a strong endorsement of London’s position right at the top of the fashion market.”
For more information on the Retail team and their services, click here.
Solicitor Shabnam Shekarian explores the Renters’ Rights Bill, explaining its significance in the changing regulatory environment and offering guidance to landlords on how to respond, in FT Adviser.
Shabnam’s article was published in FT Adviser, 7 August, and can be found here.
If there is one area in which the Labour party’s 2024 general election manifesto demonstrated particular clarity, it was in its stated intention to recalibrate the relationship between residential landlords and private renters.
This policy stance reflected a broader ideological objective: to shift the regulatory balance in favour of tenants, as part of a wider social justice agenda.
This policy shift represents a pivotal moment in housing regulation, reflecting the government’s recognition of the vital role landlords play in ensuring a stable and functional rental market.
By elevating housing security to a matter of public interest, the approach seeks to foster a more transparent and accountable framework; one that supports responsible landlords in providing quality accommodation, while promoting fairness and long-term stability for all parties involved.
More than a year since the launch of their manifesto, section 21 of the Housing Act 1988 remains in force.
However, as is often the case, the legislative process has proven more complex than anticipated, delayed in part due to amendments introduced in the House of Lords prior to the summer recess.
As matters currently stand, the House of Commons is due to debate the proposed amendments on September 8 2025, with Royal Assent expected thereafter.
Some political observers suggest that the government may seek to finalise the legislation ahead of the Labour party annual conference later that month.
A six-month lead time is anticipated, meaning the principal provisions may not take effect until spring 2026.
That said, some elements — most notably the abolition of section 21 — could be brought into force more rapidly for political effect, potentially as early as the end of September 2025.
This could create uncertainty for landlords, who may be required to adjust their practices at short notice and face differing compliance timelines depending on when specific provisions come into force.
It is important to note that the abolition of no-fault evictions forms just one part of a broader legislative package.
Additional measures include enhanced rights for tenants, such as the right to keep pets, each of which will have operational and compliance implications for landlords.
The bill also introduces new enforcement mechanisms, including increased funding for local authorities to regulate landlord conduct more proactively.
Penalties for non-compliance with basic tenancy requirements are expected to increase, alongside new registration and database obligations designed to improve transparency across the sector.
Moreover, the government is expected to issue accompanying guidance to clarify how courts should interpret certain discretionary grounds, with the aim of promoting consistency in possession claims.
Another area of potential complexity lies in how transitional provisions will be applied to existing tenancies.
The government has suggested that all assured shorthold tenancies will eventually be converted into the new periodic model, however, it has yet to confirm whether this will occur automatically or via legislative triggers.
As such, both legal practitioners and landlords will need to monitor closely how and when these transitions are implemented.
Expanding compliance and dispute resolution
Further, the role of dispute resolution mechanisms is likely to expand as a result of these reforms.
In addition to formal court proceedings, it is expected that alternative dispute resolution schemes will be promoted to resolve disagreements over rent increases, repairs, or possession notices.
This reflects a wider governmental aim to reduce pressure on the court system while offering tenants and landlords a less adversarial path to resolution.
For letting agents, the bill is also set to introduce new compliance duties, particularly around the provision of prescribed information and oversight of tenancy documentation.
Failure to meet these standards could expose agencies to regulatory sanction or litigation.
As a result of this, industry bodies have already begun to urge their members to begin reviewing internal processes in anticipation of the new legal regime.
In practical terms, once the legislation is in force, landlords will face a more restrictive and procedurally burdensome process in seeking possession from tenants.
Those wishing to rely on the current regime should take proactive steps without delay.
Section 21: What landlords should do as a matter of urgency
With time running out for taking advantage of this legislation before it is abolished, landlords considering possession proceedings under section 21 should do so as a matter of urgency.
Although still technically in force, use of this procedure requires strict compliance with regulatory requirements.
As the government notes: “You must follow strict procedures if you want your tenants to leave your property.”
This guidance focuses on England, as housing law diverges across the UK’s devolved administrations.
Under current rules, a section 21 notice may be served either:
at the end of a fixed-term tenancy (where a written agreement exists); or
during a statutory periodic tenancy (where no fixed term is in place).
Where the tenant has breached the tenancy terms, landlords should instead rely on section eight of the Housing Act 1988.
However, a section 21 notice will only be valid if specific conditions have been satisfied, including:
The tenancy must be at least four months old.
The landlord must have protected the tenant’s deposit in an approved scheme (for post-April 2007 tenancies).
The local authority must not have served an improvement or emergency works notice within the preceding six months.
No unlawful fees or deposits must remain unpaid.
Where required, the property must hold an appropriate HMO licence.
The tenant must have been provided with:
a valid energy performance certificate;
an up-to-date gas safety certificate; and
a copy of the government’s How to Rent guide.
Landlords are required to provide at least two months’ notice, although longer notice periods may apply to contractual periodic tenancies — for instance, where rent is paid quarterly.
If the tenant fails to vacate following expiry of the notice period, landlords must seek a possession order from the court.
Delays in court listings — especially in London — mean that this process can be protracted.
In some cases, further applications for a warrant of possession and bailiff appointment may be required.
Given the increasing scrutiny of section 21 notices, landlords should ensure that their documentation is in order and that all preconditions have been fulfilled.
The prescribed notice (form 6A) should be used, or an equivalent containing all required statutory information.
This may be the final opportunity to make use of section 21. Diligent preparation is strongly advised.
Looking ahead to renter’s rights
Once section 21 is repealed — likely in the first half of 2026 — landlords will be required to provide a specific ground for possession, primarily via a section eight notice.
In addition, fixed-term assured shorthold tenancies will be phased out.
Most tenancies will become periodic by default, operating on a rolling weekly or monthly basis.
While the final legislative text is still subject to parliamentary scrutiny, the government has indicated that the new framework will specify both mandatory and discretionary grounds for possession.
Although, as mentioned earlier, the full details of the proposed new act have not been finalised, practitioners already have a sense of what this will look like, with a number of criteria being laid out as legitimate reasons for eviction.
Examples of mandatory grounds include:
The landlord or a close family member intends to occupy the property.
The property is to undergo substantial redevelopment.
The tenant has accrued three months’ rent arrears.
The tenant lacks lawful immigration status.
Discretionary grounds, which require judicial discretion, include:
Breaches of tenancy obligations.
Damage or deterioration of the property.
Conduct amounting to anti-social behaviour.
Involvement in criminal activity, such as rioting.
Circumstances relating to agricultural tenancies.
A full list of proposed grounds can be found on the government’s website.
To obtain possession, landlords must serve notice in the prescribed form and allow for the applicable notice period.
If the tenant does not vacate, possession must be sought through the courts with supporting evidence.
Landlords must also prepare for heightened evidential standards under the new regime.
Courts are likely to scrutinise applications closely, particularly where discretionary grounds are cited and thorough record-keeping, including photographs, correspondence, and inspection reports, could prove critical in demonstrating that possession is justified.
The reforms also introduce further controls on landlord conduct, including:
A cap of one month’s rent in advance.
A prohibition on rent increases more than once per year.
A requirement for two months’ notice prior to any rent increase.
The right for tenants to challenge increases deemed unreasonable.
Importantly, the tribunal process for challenging rent increases will be streamlined, with First-tier Tribunals expected to play a larger role.
This will introduce new litigation risk for landlords seeking to push rents to market levels.
The government has stated that this will prevent landlords from using excessive rent rises as a de facto eviction strategy, while still allowing adjustments in line with market conditions.
Tenants, under the new periodic regime, will have the right to terminate the tenancy at any time, subject to a minimum of two months’ notice.
The renters’ rights bill represents the most significant reform to the residential rental sector in a generation.
While its intent is to redress perceived imbalances in tenant protection, it will have far-reaching operational consequences for landlords and letting agents.
Professionals advising landlord clients should ensure that they are aware of both the short-term opportunities to act under the existing framework, and the longer-term procedural and evidential requirements that will arise once the new regime comes into effect.
The transition will demand not only technical legal compliance, but also a strategic re-evaluation of portfolio management practices, tenancy structuring, and dispute resolution protocols.
Particularly for institutional landlords and build-to-rent operators, advance planning will be essential to ensure readiness for the evolving regulatory environment.
Failure to prepare could lead not only to delayed possession proceedings and rent loss, but also reputational damage, particularly for larger landlords subject to public scrutiny or investor expectations around compliance.
However, ultimately, success in navigating these reforms will depend on early engagement, robust legal advice, and a willingness to adapt.
As the regulatory landscape continues to evolve, careful compliance and anticipatory legal planning will be critical, and the role of advisers will only become more vital for private landlords and agents looking to navigate these shifting tides.
Lawrence Stephens is delighted to have acted for Sandersons London in securing a new lease of a residential building on Draycott Place, Chelsea.
With support from our real estate team, Sandersons have taken on a 10-year lease of the entire building, comprising of 10 units to be refurbished into high-class apartments, in a prime residential location in Chelsea. The lease was completed swiftly within just two weeks of instruction, ensuring a timely and smooth transaction process for Sandersons.
This transaction marks a significant milestone for Sandersons, as the Chelsea letting is the first step in their ambitious plans for building a portfolio of serviced apartment offerings. Lawrence Stephens looks forward to supporting them and continuing a strong relationship as a trusted legal adviser as they expand their property portfolio.
The transaction was completed by Chris Cagney, Director in the Commercial Real Estate team.
Chris commented:
“I am delighted to have assisted our client Sandersons London with this lease in a beautiful location and to play a part in the expansion of the business into the service apartment sector.”
Matthew Manowski, CEO of Sandersons London added:
“This Chelsea building is more than just our newest lease – it’s the cornerstone of a bold new chapter for Sandersons London. In taking on this prime Draycott Place address, we’re not only expanding into one of the city’s most desirable postcodes, but setting the stage for a curated collection of serviced apartments that redefine what high-class city living can be. Lawrence Stephens have been exceptional partners in making this happen in record time, and we can’t wait to bring our vision for these homes to life!”
You can read more about our real estate team and their services here.
As growing numbers of American investors target the UK’s prime real estate, Directors Alexa Kordowicz and Leigh Sayliss explore what’s fuelling this transatlantic property boom and discuss the key tax considerations US buyers must navigate to protect their investments and ensure long-term financial efficiency.
Alexa and Leigh’s article was published in IFA Magazine, 11 August 2025, and FT Adviser, 18 August 2025.
With more Americans than ever making the move to the UK and buying prime property, advisers need to be aware of the tax pitfalls their clients could face, and how to help them avoid costly mistakes.
US migration to the UK reaches record levels
The Americans are coming. In recent years, a growing number of Americans have been crossing the Atlantic to make the United Kingdom their home. While celebrity immigrants such as Ellen DeGeneres have made the headlines, the UK is now attracting thousands of Americans every year.
Many are here to stay. The Home Office says that over 6,600 Americans applied for UK citizenship in the year ending March 2025 – up 30% on the previous year. The first quarter of 2025 alone saw 1,931 applications, the highest quarterly figure in two decades.
Prime property hotspots are attracting wealthy US buyers
There has been a notable surge in well-heeled American buyers seeking properties in London, particularly in prime central London areas such as Mayfair, Marylebone, Chelsea and Belgravia. Americans are now reported to be the main non-British buyers of prime London real estate. Outside of London, desirable rural areas such as the Cotswolds are in vogue.
Lifestyle, safety and cultural similarities are key draws
This trend appears to be driven by a mix of political disillusionment, lifestyle aspirations and the straightforward, practical advantages of life in the UK, from safer streets to a lower cost of living, cheaper private schools and free healthcare. Another key attraction is that, as a culturally similar English-speaking nation, adjusting to life to the UK tends to be relatively easy for Americans.
Better work-life balance is a major attraction
The UK is an attractive destination for those Americans seeking a better quality of life. The promise of a better work-life balance also appears to be a significant draw. In the UK, workers are entitled to more annual leave, paid maternity leave of up to 39 weeks and lower working hours, for instance. From wealthy celebrities to everyday professionals, the UK’s allure is now reshaping migration patterns, which historically tended to be in the other direction.
Political stability and safer education are influencing moves
In 2025, MAK25 London Limited analysed several key drivers prompting Americans to relocate to London, and found perceived political instability in the US to be a significant factor. The UK’s safer educational environment was found to be a notable factor, which perhaps few Britons consider. The UK has had no school shootings since 1996, compared to 39 in the US in 2024 alone, and six in 2025. This is an understandable anxiety for American parents. Lower crime, along with free maternity care and generous maternity leave certainly makes the UK an attractive destination for young American families. Personal factors, such as family ties or job opportunities, also play a role according to MAK25, which also emphasises the importance of obtaining bespoke visa advice.
Currency strength and property market trends are boosting appeal
The current strength of the US dollar against the pound is increasingly making property purchases attractive for Americans, as is the softening UK property market. Post pandemic lifestyle changes and more flexible working arrangements also mean that it’s possible for Americans to consider a second home abroad, even while continuing to work in the US. London and the UK still have global appeal and cultural cachet, and the UK’s reputation is that of a safe haven for international buyers to invest their wealth.
Engaging advisers early is vital for avoiding tax traps
It is vital for Americans considering a move to the UK to engage US and UK tax qualified legal advisors at the outset – ideally prior to making an offer on any property. It’s essential to consider the possible ownership structures carefully, and to understand all the tax implications. Although thorny tax issues can arise, especially regarding inheritance tax, there are ways to mitigate these if they are considered before buying a property.
Understanding the key UK tax implications
Advisers of Americans moving to the UK will need to understand how the UK’s tax regime may impact them and their families, particularly if they are owners of second homes. Stamp Duty Land Tax (SDLT) surcharges for people buying a second home, and for non-UK residents, may well apply. This means that some canny buyers are looking to invest in areas in the UK with strong growth potential, to help offset the higher initial purchase costs.
Properties for personal use are generally bought in personal names or through trust arrangements, as there are further SDLT implications and the Annual Tax on Enveloped Dwellings (ATED) if the client decides to purchase through a company – unless the property is being bought solely for investment and the owner does not intend to use it personally.
Capital Gains Tax (CGT) rates in the UK may surprise Americans, and this is payable on the gain made upon the eventual property sales. It may be payable in the US and UK, but tax treaties avoid double taxation.
Potential inheritance tax at 40% on UK assets is another issue to be carefully considered. Although this should be offset against taxes paid in US, the UK threshold for paying inheritance tax is significantly lower than that for US Estate Duty. It is also worth remembering that there is no inheritance tax on transfers between spouses or civil partners.
Preparing for a smooth property purchase
American clients going ahead with a purchase should ensure that they have all the necessary documentation in order well in advance to ensure a smooth purchase. This may include proof and source of funds, a mortgage offer in principle, and insurance there will be necessary financing and sufficient tax and financial planning to ensure the purchase will be viable. Their US and UK advisors may need to collaborate closely to ensure the best strategy.
A growing transatlantic migration trend
As the political and social divides deepen in the US, the UK’s blend of cultural heritage, personal safety, and its easy access to continental Europe continues to attract Americans. Though US citizens will have to clear a variety of legal hurdles before making the move, this transatlantic migration shows no signs of slowing down just yet.
If you’re looking to invest in UK real estate, you can get in touch with Alexa here.
We are delighted to announce that Goli-Michelle Banan, Head of Residential Real Estate at Lawrence Stephens, has been promoted from Band 4 to Band 3 in the latest Chambers High Net Worth 2025 guide. Her individual rise is matched by an exciting development for the wider Residential Real Estate team, which has secured its first-ever ranking, entering directly at Band 4 in the Real Estate: High Value Residential category.
This recognition places us firmly in competition with some of the capital’s larger and most established firms, including Howard Kennedy and Edwin Coe, underscoring the strength, calibre and growing market presence of our Residential Real Estate team.
With more than a decade’s experience in the prime and core London residential market, Goli-Michelle is a trusted adviser to HNW and UHNW individuals, developers, investors, and trust administrators across the UK and internationally. Known for her commercial insight and unrelenting attention to detail, she is also recognised in the Spear’s 500 as one of the UK’s top recommended property lawyers.
This year’s Chambers HNW guide includes glowing endorsements from clients and peers, who describe her as:
“Exceptionally efficient and professional. She has remarkable attention to detail and a thorough approach.”
“Incredibly helpful and very detailed… a great solicitor that I’ve had the pleasure of working with.”
“Positive, thorough and professional.”
Our Residential Real Estate practice advises on a wide range of complex and high-value transactions, including property sales and acquisitions, leasehold enfranchisement, development site purchases, refinancing, and Islamic finance. Clients range from private investors and family offices to corporates and developers, all of whom value our commercial, solution-driven approach and high-quality service.
Our team’s first-time ranking also reflects the exceptional feedback received this year:
“Lawrence Stephens is committed to its clients and provides excellent legal advice, offering solutions and updating all parties involved in an extremely timely manner.
“The team is easy to work with, personable, client-centric, pragmatic and collaborative.”
We’re proud that Chambers HNW 2025 has acknowledged the expertise that defines our real estate offering. Congratulations to Goli-Michelle and the entire Residential Real Estate team on this well-earned recognition, a major step forward in our continued growth within the HNW space.
As part of the newly introduced English Devolution and Community Empowerment Bill, the UK Government has unveiled plans to outlaw Upward-Only Rent Reviews (UORRs) clauses in commercial leases — a move that could reshape the future of landlord-tenant dynamics.
The ban will apply to new agreements where, on the date the lease is entered into, the new rent following a rent review is not known and cannot be determined. It will not impact those leases already in place however, if implemented, any clause in a new or renewal commercial lease, whether contracted out of the 1954 Act or not, requiring the rent not to decrease will be unenforceable.
The proposal, aimed at revitalising high streets and supporting small businesses, has already been met with mixed reception across the property sector and The British Property Federation has criticised the lack of industry consultation.
What Are Upward-Only Rent Reviews?
UORRs are a common feature in commercial leases in England and Wales. UORRs allow rent to increase or remain static at review dates – typically every five years – but never decrease, even if market rents fall. This industry accepted approach to commercial leasing has long been favoured by landlords for providing income certainty and supporting property valuations.
Tenant Perspective: A Welcome Relief
For tenants, particularly small and independent businesses, the proposed ban is likely to be regarded as a positive development. UORRs have incurred criticism for binding tenants to unsustainable rent levels, especially in volatile markets. However, the outlaw of UORRs will effectively transfer the risk from tenant to landlord.
As such, a decision will need to be made by landlords as to whether to adopt a fixed rent or to permit rent variation through a rent review clause that accommodates both rises and reductions in rent throughout the term of the lease.
Landlord Perspective: A New Risk Landscape
Landlords, however, will almost certainly have concerns about the reform. Whilst rental income from commercial leases is currently considered a stable and predictable revenue stream, the prohibition of UORRs will introduce greater volatility in cashflow. Furthermore, industry stakeholders will argue that the outlaw of UORRs will undermine the perceived security of rental income and place prospective commercial property developers at a disadvantage when seeking finance.
Landlords may therefore choose to obviate the balance between risk and reward by abandoning open market review clauses and opting for the stability provided by index linked reviews.
What Happens Next?
The proposed ban on upward-only rent reviews marks a significant shift in UK commercial leasing. Whilst it aims to give tenants greater flexibility and affordability, landlords face a more complex and potentially less predictable income landscape.
In order to counteract this, it is possible that landlords will take a more aggressive stance at the outset of negotiations to mitigate the risk of stagnant or falling rents. Similarly, the inclusion of tenant-friendly terms, such as break clauses and rent-free periods, may become less prevalent as landlords reassess their leasing strategies.
Alternatively, landlords may opt for shorter leases which are to be contracted out of the Landlord and Tenant Act 1954. The potential drawback of this approach is that the cost of reletting the property will likely be passed to the tenant.
We may also see more pre-agreed stepped rents being negotiated (such increases would not be caught by the ban as the rent would be known at the outset) and this would give both tenants and landlords certainty at the start of a lease as to how much rent will be payable at any given time during the lease term.
Ultimately, the success of this legislative change will depend on how effectively the market adapts to a model that seeks to balance commercial flexibility with financial viability. As the Bill progresses through Parliament, stakeholders on both sides will need to stay alert to legislative developments and prepare for a new era in lease negotiation.
For more information on our Commercial Real Estate team, click here.
Nickhil Mandora, Director at Lawrence Stephens, has advised Salomon on their latest UK store at Battersea Power Station. This is the third UK store Salomon has opened in the past year, with Nickhil advising on all lettings.
Founded in 1947 in the French Alps, Salomon is an outdoor brand creating high-performance gear for running, hiking, skiing, and adventure. The Battersea Power Station store will be focused on footwear, offering a collection of sport-style, running, and hiking shoes.
This letting solidifies Battersea Power Station’s status as an iconic and desirable shopping destination, home to lifestyle brands favoured by consumers.
Nickhil Mandora: “We are delighted to assist Salomon on their latest UK retail space in the iconic Battersea Power Station, marking a hat trick of stores in the capital for the brand. Salomon have been consistently innovating not only the products they offer but the services provided in-store and we are excited to continue our partnership with them”.
For more information on our services and expertise in the commercial real estate sector, please click here.
Lawrence Stephens is delighted to announce the appointment of Alexa Kordowicz as a Director in the firm’s growing Residential Real Estate team.
Alexa joins from Child & Child, where she developed a leading reputation for advising on high-value residential property transactions. Alexa has built a wide-ranging practice acting for individuals, companies and both UK and international private banks. She brings to the firm a wealth of experience in managing complex and high-net-worth property matters, with a particular focus on delivering a seamless client experience through strong relationships and a commercially minded approach.
Alexa looks forward to working closely with teams such as Private Wealth to coordinate multi-faceted transactions involving extensive property portfolios.
Speaking on her appointment, Alexa commented: “I’m thrilled to be joining the highly regarded team at Lawrence Stephens. The firm’s client-first ethos and collaborative culture are an excellent fit for my approach to legal practice. I look forward to continuing to support clients in the UK and internationally on their residential property matters, and to growing the practice together with the wider team.”
Goli-Michelle Banan, Head of Residential Real Estate, added: “Alexa is an exceptional addition to our team. Her experience in high-value residential transactions, coupled with her commitment to client service, aligns perfectly with our focus on delivering a tailored and positive experience. We’re excited to welcome her to Lawrence Stephens as we continue to expand the scope and strength of our Residential Real Estate offering.”
Details of our Residential Real Estate services can be found here
Lawrence Stephens Director Nickhil Mandora and Solicitor Sophie Levitt have advised Arc’teryx on their first UK store outside of London, located at New Cathedral Street, Manchester. The new store is Arc’teryx’s first foray into the UK retail market outside of London and represents a significant vote of confidence for the North West.
Arc’teryx, based in North Vancouver, British Columbia, is a Canadian company specializing in technical outdoor apparel and equipment for mountaineering and alpine sports.
The new store, set to open this summer, will be the brand’s fourth UK location, joining its other retail sites in Covent Garden, Piccadilly, and Battersea Power Station.
Nickhil Mandora has acted on the leases of each of these sites and said “We are delighted to have acted for Arc’teryx on their newest store located on New Cathedral Street, Manchester, which will no doubt have been with met excitement by fashion-conscious Mancunians. Arc’teryx are a brand that are at the top of their game, having managed to effortlessly tap into the zeitgeist, and we look forward to extending our relationship with them.”
For more information on our services and expertise in the commercial real estate sector, please click here.
Director and Head of Commercial Real Estate Danny Schwarz, and Trainee Solicitor Stephen Dodge examine how the ongoing lease renewal dispute between a tenant – the Prince Charles Cinema – and their landlord reveals real estate concerns for many of London’s independent businesses.
Danny and Stephen’s article was published in Estates Gazette, 25 March 2025, and can be found here.
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From packed showings of cult classics like The Room to raucous singalong presentations of The Rocky Horror Picture Show, Londoners are united by weird and wonderful memories from the iconic Prince Charles Cinema in Leicester Square. However, few visitors would have imagined, while passing through the theatre’s red carpeted corridors, that such a long-standing institution does not own its space.
Like many of London’s independent businesses, the Prince Charles Cinema is a tenant, and is currently suffering the nightmare of all tenants – a bitter dispute with its landlord. However, unlike the horror classics that have played across its screens, the plucky protagonist of this story seems unlikely to make it out alive.
The cinema announced earlier this year that its landlord has all but chosen to force the cinema to close its doors.
Lease renewals and break clauses
In what otherwise might be a standard lease renewal at market rents, the landlord has demanded rents the cinema pays are far above market rates. It has also proposed a rolling break right in the lease, which would allow the landlord to terminate the lease on six months’ notice at any time. The belief is that the landlord, owned by real estate development company Criterion Capital, intends to redevelop the property.
It’s not hard to see why
Already a prime London location, the Prince Charles Cinema is an historic building in an area of high footfall. Despite the theatre’s old-world charm, there are likely scores of rival businesses that would happily swoop in on such a desirable plot.
While break clauses in commercial leases are a part of business included to provide a degree of certainty of term to the parties and to minimise the risk of non-payment of rent, they are typically commonplace in commercial leases. A landlord or tenant may have an option to break on the third or fifth anniversary of their agreement, but that option allows the break to occur only on that specific date, with notice. Sometimes, tenants with break clauses are even rewarded for not exercising that clause with a rent-free period after the break date.
The proposed break clause in the Prince Charles Cinema’s new lease would throw certainty to the wind by allowing the landlord to force out the tenant at any time.
The demand for above-market rents adds a further layer of obfuscation to the negotiations.
The landlord’s break which they can exercise at any time is not in itself a reason for the Prince Charles not stay in occupation. The above market rent is more likely to prevent the cinema from renewing its lease. If the landlord wanted the property vacant, it might have simply elected not to discuss renewal. Unless of course the Prince Charles is protected by the security of tenure provisions of the Landlord & Tenant Act 1954.
A look at the lease
A look at the current lease which is available to view at the Land Registry suggests that the Prince Charles could be in a better negotiating position than reported, given that it enjoys security of tenure under the lease. This means the cinema could serve a notice on the landlord requesting a new lease on the same terms as the existing lease save for the rent and the term of the lease which would both need to be in line with the current market. This would mean that for the landlord to oppose the grant of a new lease it would have to object on one of the prescribed grounds, in this case most likely redevelopment.
The difficulty the landlord would face is that at present its plans to redevelop the property are nothing more than rumours and to oppose a new lease the landlord must show genuine intent, through applying for planning permission, for example
A look at the rent review provisions in the current lease of the cinema hints at another reason the landlord may be wary of statutory renewal proceedings. The lease granted in 1963 contains provisions for rent review every 21 years and capped at £14,000 per annum. This may explain how the cinema has survived this long in Leicester Square. Capped rent reviews are less common in modern leases. Leases also tend to be shorter, and rent reviews usually occur every 5 years, not every 21.
Ultimately, this is all speculation. It is impossible to know the exact status of the negotiations. Unless the Prince Charles has grounds to oppose the proposed higher rents and rolling landlord’s break, there is likely little the cinema can do in this situation.
Despite a petition circulating gathering more than 15,000 signatures at the time of writing, for independent businesses in the entertainment and hospitality sectors who are facing these ‘David vs Goliath’ battles against their larger landlords, there is simply not enough bargaining power.
Silver screens and silver linings
This position is made worse for businesses with unique or novel requirements for their property, such as cinemas.
While the Prince Charles is a unique business with its niche and devout following, cinemas are becoming increasingly less desirable as tenants, due to their relatively low turnover post-pandemic. In areas like Leicester Square, there is an added incentive for landlords to attract businesses with high turnover and higher spend per customer, so that they can charge turnover rents.
There is one silver lining to the storm cloud gathering above the Prince Charles Cinema: the landlord has not yet applied for planning permission to redevelop. A search of Westminster Council’s Planning Portal shows just one entry relating to the property – an approved application to display an unlit sign reading ‘to let’.
So, for now at least, the show goes on.
If you would like to know more about our Commercial Real Estate services, or to get advice about commercial leases, please click here
Whether handling commercial properties, mixed-use developments or the most exclusive super-prime residences, the very best property lawyers are trusted by HNW clients to provide expert guidance throughout the often lengthy, intricate, and high-stakes process of buying, building, and selling real estate.
We are delighted to announce that Stephen Messias, Director in our Commercial Real Estate team, and Goli-Michelle Banan, Head of Residential Real Estate, have been named top property lawyers in Spears’ Property Indices 2025.
“The advisers selected for the Spear’s Property Lawyers Index 2025 demonstrate not only an extraordinary depth of knowledge but also an ability to navigate the evolving landscape of property law with skill and precision.”
Lawrence Stephens have recently advised long-standing client Tri Capital Properties in relation to two commercial property sales which have completed within a week of each other.
The first comprised a partially let property in Thornton Heath where contracts were exchanged within ten working days of receipt of agreed terms. The second transaction was a complicated sub-lease of part of premises in West London.
The transactions were led by Commercial Real Estate Director Craig Mullen who commented: “It was a pleasure to assist Tri Capital with these disposals. The team at Tri Capital are always proactive and driven to achieve agreed deadlines. A special mention must also go to the selling agents at Henshall & Partners, Acorn Commercial and Estate Office Property Consultants who were on hand at every step of the way. I look forward to working with them all again very soon.”
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