The UK Market: A legal guide for business entry & growth
Leasing real estate
The lowdown on leasing real estate
Are you thinking about taking or granting a lease in the UK? Here’s how to stay compliant and protect your investment.
Taking a lease as a Tenant: If you’re an overseas entity looking to lease property in the UK, the Economic Crime (Transparency and Enforcement) Act 2022 is a vital piece of legislation you can’t ignore.
England and Wales: If your lease is for more than seven years, you must register on the Register of Overseas Entities (ROE). If you are not registered on the ROE, the Land Registry won’t register you as the legal owner of the leasehold interest.
Scotland: Overseas entities entering into leases of more than 20 years need to be registered on the ROE and in the Register of Persons Holding a Controlled Interest in Land (RCI). Whilst failure to register in RCI doesn’t prevent Registers of Scotland from registering your lease failure to do so is a criminal offence.
Northern Ireland: Here, the rule to register on the ROE applies to the owners of leasehold estates over 21 years.
Failure to comply with these registration rules will result in the relevant jurisdiction’s land registry refusing to register the leasehold interest.
Investing in property and granting leases
If you’re investing in real estate or granting leases as an overseas entity, the Economic Crime (Transparency and Enforcement) Act 2022 (ECTEA) still applies. The rules apply to both freehold acquisitions and the granting of leases exceeding the thresholds outlined above. For example, in England and Wales, an overseas entity can’t register as the owner of a freehold or leasehold interest unless it is listed on the Register of Overseas Entities.
The specifics differ slightly across jurisdictions, as described above, emphasising the need to consider local legal requirements before proceeding with an investment or granting leases.
All landlords must make sure they are complying with local energy efficiency regulations, which differ across the UK. In England and Wales, it’s unlawful to grant a new lease (or continue letting) a property with an EPC rating of below E, unless you qualify for and register an exemption. The minimum EPC standard is set to rise – it’s expected to be raised to C by 2027 and B by 2030. In Scotland and Northern Ireland, there’s currently no legal minimum EPC rating for leases.
The approach to security of tenure varies across the UK. In England and Wales, the Landlord and Tenant Act 1954 (LTA 1954) gives tenants automatic rights to renew their lease (save where certain limited conditions exist) unless the lease is contracted out. If you don’t want your tenant to have renewal rights, you must follow the correct contracting out process.
The LTA 1954 doesn’t apply in Scotland or Northern Ireland. In Scotland, there is no security of tenure, but leases can continue on a yearly rolling basis if no notice to quit is served before the end of the lease term (known as ‘tacit relocation’). This may change soon with a bill called the Leases (Automatic Continuation etc.) (Scotland) Bill, currently going through the Scottish Parliament, to change the way commercial leases come to an end.
The Business Tenancies (Northern Ireland) Order 1996 offers similar protection to the LTA 1954. Tenants under leases of business premises granted for a fixed term of nine months or more, or where there is 18 months or more business occupation, are protected. However, unlike the LTA 1954, you can’t contract out of the BTO 1996.
Why work with us?
Leasing or investing in UK real estate involves managing varied legal requirements across jurisdictions. Our real estate experts can help, making sure you comply with the rules while aligning your lease arrangements with your business needs. For strategic advice tailored to your property requirements, contact our real estate experts:
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A legal guide for business entry & growth
The UK market guide
This guide provides an overview of the relevant legal considerations when setting up in the UK and explains how our expert team supports you throughout each stage of your expansion journey.
Structure & tax
Explore the best legal and tax structures for entering the UK market. Learn how to minimise risk, ensure compliance and choose the right setup - through subsidiaries, branches or joint ventures.
Commercial contracts
Understand how English contract law supports flexible, enforceable agreements. Discover key principles, common pitfalls and how we draft commercial contracts that protect your interests.
Regulatory Compliance
Understand the UK’s regulatory landscape and how it affects your business. This section covers key areas - helping you manage risk, meet legal obligations and operate confidently across sectors.
Banking & Finance
Navigate the UK’s dynamic finance landscape with expert guidance. Learn how to structure deals, access funding and leverage ESG-linked instruments to support long-term investment strategies.
Leasing Real Estate
Practical insights into UK leasing laws across jurisdictions. Understand registration, energy standards and tenant protections to make informed decisions when leasing in commercial property.
Employment & Pensions
Ensure compliance with UK employment law. Learn how to structure contracts, manage statutory rights while staying ahead of upcoming legal reforms and pension obligations.
Business Immigration
Explore UK immigration routes for business expansion. Understand visa options, sponsorship requirements and compliance risks to ensure smooth relocation and legal planning for personnel.
Data Protection
Stay compliant with UK GDPR and the new Data Use and Access Act. Learn how to manage personal data, lawful bases, international transfers and individual rights with confidence and clarity.
Intellectual Property
Protect and monetise your innovations with UK IP law. Explore patents, trade marks, copyright and design rights - learn how to enforce, license and leverage IP for commercial advantage.
Franchise Laws
Understand the legal framework for franchising in the UK. Learn how to structure agreements, manage IP, comply with competition law and support franchisees while protecting your brand and business.
International Trade
Navigate the UK’s post-Brexit trade landscape. Discover how to manage tariffs, export controls, and trade remedies to protect your supply chain and maximise global opportunities.