Lee was first signed to Phonogram Records in the late 1970s as guitarist with the band, Red Hot. They released one single, "Lazy Days", which was produced by Mutt Lange.
Lee's first big engagement led him to play guitar and keyboards on Cliff Richard's late 1970s tours, and his 1979 album, Rock 'n' Roll Juvenile. In 1981, Lee became a member of the British goth rock band, Toyah, co-writing songs including the hit single, "Thunder in the Mountains", and he stayed with them until 1982. The same year he released his only solo album, called The Magician. He continued to write for Toyah Wilcox, and appeared on her 1985 album, Minx, for which he and Wilcox wrote "Soldier of Fortune, Terrorist of Love". Minx was produced by Christopher Neil. Neil asked Lee to play on the first Mike + The Mechanics album. Lee was a member of Mike + The Mechanics until 1995.