Commercial Property Solicitors

Commercial Sales and Purchases

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Commercial Sales and Purchases

We collaborate closely with our commercial clients to facilitate the buying and selling of businesses. Whether you own several properties or are looking for your first space, we can offer expert guidance and a deep understanding of the local commercial landscape.

Count on us to help you through your commercial property deal, making the process streamlined and tailored to your needs.

 

Buying a commercial property

Before jumping into buying a commercial property, you should assess what's not working in your current setup and figure out your current and future needs, considering location, space, and functionality. Market research helps shortlist potential properties. 

Once you have found your commercial property, the next step is to get more information about the space.

Survey

Having a survey is important as it is a valuable tool to address any concerns related to a property. It can also be quite useful in facilitating effective negotiations with the commercial seller and their agents to come to a fair price.

This phase involves a thorough check of the property with surveys bringing potential issues like structural damage or things like historical environmental concerns or prior disputes to light. It's worth noting that specific searches may be needed by your lender. These third-party reports help identify details about the property and its surroundings, information that might be challenging to obtain through other means.

 

Title Checks and CPSEs

The Seller’s solicitor will provide your solicitor with copies of the property’s title. The solicitors will then work through this to check that the property has all of the rights it needs to function and will make sure that there are no rights granted to third parties that would prevent the buyer from using it for their intended use.

The Commercial Property Enquiries (CPSEs) are completed by the seller. These pre-contract enquiries are key in disclosing important information. Your solicitor reviews these responses to make sure you’re sufficiently protected and to avoid any surprises. The answers to CPSEs should be accompanied by copies of the documents and reports that are discussed in the answers. 

 

Mortgage offer

Your solicitor will also spend time working through the mortgage offer and will help to prepare any of the necessary paperwork to help get the lending. For example, if the buyer is a limited company, the bank is likely to want the directors to enter into personal guarantees. The bank may also want to see the board minutes authorising the lending for instance.

 

Exchange of contracts

When full due diligence has been completed and you are happy that they have the answers to all of their questions, it is time to sign the contract, the transfer and if relevant, the mortgage deed. Once both parties have the signed contract and returned it to their solicitors, it will be time to exchange contracts. The deposit will be transferred and a completion date agreed with the seller.

The solicitors will then call each other up and exchange contracts. At this point, the completion date is fixed, the seller is contractually obliged to sell and the buyer is contractually obliged to buy. 

Between exchange and completion, sellers prepare the property, and buyers make moving arrangements. Your solicitor finalises details with the seller's solicitor and submits necessary documents to your bank.

 

Completion

On completion day, purchase funds are transferred, and the buyer becomes the new owner. The buyer's solicitor handles post-completion tasks, including registering the legal charge, submitting tax returns, and registering ownership at the Land Registry. The buyer notifies relevant authorities of the move.

 

 

Selling a commercial property

Just like with residential properties, when you’re selling a commercial property it's essential to eliminate clutter, ensuring the property is presentable and appealing to a wide audience. This not only enhances the property's aesthetic but also allows potential owners to envision their business thriving in the space.

Understanding your potential buyers is the next critical step. Creating a pack of information, including details on planning permissions, energy performance certificates, local transport, business rates, and other costs, helps prospective buyers make informed decisions. 

Working alongside a solicitor is crucial. They help manage deposits, facilitate contract exchanges, and ensure all the legal processes and documentation are in order for a smooth transaction. Choosing the right solicitor is vital for a quick and efficient sale, as they will guide you through various processes and address any queries you may have.

Determining the property's value involves considering factors such as recently sold properties in the area, market trends, property availability, and the condition of your property. Accepting an offer involves careful consideration of the buyer's position, financial status, and mortgage details.

Once an offer is accepted, the buyer will then usually arrange a survey of the commercial property. After this, the title will be reviewed and The Commercial Property Enquiries (CPSEs) and searches requested.

The process moves towards the exchange of contracts and completion. During this phase, the buyer pays a deposit to the solicitor, and a mutually agreed-upon completion date is set. On completion day, all legal aspects are finalised, and the remaining funds are released by the buyer’s mortgage lender.

 

Commercial property experts

We can advise both commercial sellers and buyers and deal with all aspects of the transaction for you, giving you specific advice on other areas including employment law when transferring contracts or dealing with transferring employees.

Our transparent quotes provide you with a clear estimate of the likely costs involved from the outset. You will be provided with direct contact details for the solicitor working with you so that you can both liaise directly and seamlessly.

We offer clear and practical legal advice on a range of issues, including:

We pride ourselves on developing a client-friendly environment. Whether you're a seller or a buyer in a business transaction, we cover every aspect of the process. Count on us for comprehensive advice. Elevate your commercial property experience with our dedicated and accessible commercial property services.

WHY GLOVERPRIEST?

At GloverPriest, we provide friendly and transparent legal advice. If you would like further advice on commercial auctions, please don’t hesitate to speak to one of our expert commercial property lawyers today. Complete our enquiry form.

 

 

Frequently Asked Questions

 
What are the costs involved in buying commercial property?

When purchasing commercial property there are an array of additional costs, including professional advice from commercial estate agents, lenders, and solicitors. Other considerations involve VAT and Stamp Duty Land Tax (SDLT), fees linked to commercial mortgage arrangements, and expenses related to decorating, refurbishing, and furnishing the space. 

Transportation of furniture and equipment, the establishment of IT facilities, and ongoing maintenance costs, including insurance, repairs, and local authority charges, can also be added. In addition, you need to consider energy costs which are indicated by the Energy Performance Certificate (EPC), along with other utility bills.

What fees do you pay when selling a commercial property?

Fees can include those of commercial agents and solicitors, potential mortgage redemption fees, capital gains tax implications, and removal costs if equipment or furniture isn't part of the sale.

Is it worth buying a commercial property?

Investing in commercial property in the UK presents a compelling opportunity for those seeking a steady income, as it boasts higher rental rates compared to residential properties. Commercial property investments offer dual streams of revenue, rental income and capital growth resulting from property value appreciation. 

Notably, the UK's commercial property market benefits from longer lease structures than those in Europe and the US, with London offices averaging 10-15 year leases and the UK as a whole averaging around eight years. 

This extended lease duration provides a sense of security for investors, guaranteeing income at a fixed level over an extended period, offering more stability compared to returns from shares. 

Many businesses are moving away from traditional city-centre office blocks and investors are exploring smaller, premium office spaces and other lucrative sectors like student accommodation, pop-up commercial units, logistics, and healthcare. The adaptability and resilience of commercial property investments make them an attractive prospect.

 

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