Sale or purchase of commercial property
If you are buying a commercial property, we will liaise with any agent and/or lender and then take a proactive approach when dealing with the seller’s solicitors. We will amend and approve the contract, raise important and relevant enquiries, conduct searches, comprehensively report to you and advise you and then complete and register the transaction as quickly and effectively as possible.
What to consider if you are buying commercial property:
- Is there stamp duty land tax to pay?
- How much will it be to register the ownership of the property at the land registry?
- Is a structural survey required?
- Are there any restrictions on its use?
If you are selling a commercial property, we will liaise with any agent, prepare the sale contract and any associated documents, deal with any enquiries raised by the buyer’s solicitors, report to you and complete the transaction as quickly and effectively as possible.
Documentation required to sell a commercial property:
When selling commercial property, there are a variety of different documents that you will need to provide. You will need to include the following:
- Any replies to Commercial Property Standard Enquiries (CPSEs).
CPSEs are commonly a set of questions that sellers are required to provide the answers to when they sell a commercial property. It’s imperative that these questions are answered accurately and error-free, as the buyer is entitled to rely on the responses. If the information is inaccurate, the buyer could sue the seller for misrepresented information.
- Planning and Building Regulations Documentation
If you’re in possession of any planning permission documents, or perhaps certificates of lawful use relating to the property, these should be provided to the prospective buyer. In addition to this, if you are in possession of any building regulation certificates these should also be provided.
- Fire Risk Assessment
If you are the sole responsible party for the commercial property, you need to undertake a fire risk assessment and this needs to be provided to the buyer.
- Asbestos Survey
If the commercial property is of a certain age, it is a legal requirement to check if there is asbestos present and produce an ongoing management plan. This should be a document provided to the buyer.
- Energy Performance Certificate
The agent will typically provide this to the buyer as part of the marketing process. With that being said, we advise supplying a copy of the EPC as it’s a useful document and will be passed onto the buyer’s solicitor.
You should pass on any extra documentation which is related to the property, which may include:
- Records of air conditioning maintenance
- A health and safety file
- Electrical and/or gas test certificates
You will also want to include a document that details the business rates and any other costs that the buyer would be liable for as a result of owning the property.
To prevent any kinds of delays from a transaction perspective, it’s important that these documents are provided as early as possible. Whilst the items listed above are the ones commonly asked for, there can be additional documents that are relevant to the property transaction; so this is something to consider when selling commercial property.
Please contact us if you have any questions about selling/buying commercial property.
Costs associated when selling a commercial property:
When selling a property, it is to be expected that additional costs will occur. These costs may include;
- Commercial Agent Fees
Using an agent can streamline the selling process immensely, but they do come with an added cost. With the commercial market being such a competitive market, it is advisable that you discuss their costs before acclimating them with your property and selling plans. Agents do take a commission, which is duly calculated as a percentage of the sale price. This portion of the commission is worth discussing with the agent, as it will vary.
- Solicitor Fees
Solicitor fees will cover the legal aspect of selling a property and transferring legal ownership to the buyer, which is formally known as conveyancing. This is as well as other preparatory work associated with sales.
- Mortgage Redemption Fee
If the property has a mortgage attached, you could incur a charge for paying this early.
- Mortgage Arrangement Fees
If in the instance you require a mortgage for a new property and you’re not able to transfer your existing mortgage, it’s possible that you may have to pay mortgage arrangement fees.
- Removal Costs
It is your personal responsibility to arrange the removal of any pre-existing furniture, equipment and items that are not part of the property sale.
Any profit that you make from the sale will be applicable for Capital Gains Tax. This will apply to the sale and exemptions or reliefs may apply.
Can you claim back GST on commercial property?
For purchasers of commercial property, you can typically claim any GST included in the purchase price. It is to be expected that there are certain criteria to meet to make this claim, for example, you must be registered for GST. You will generally need to hold a tax invoice for the purchase.
We also provide the following services:
- Advising both landlords and tenants in the granting and taking of commercial leases
- Renewing business leases
- Lease Assignments
- Advising landlords and tenants in respect of lease surrenders, licences, rent deposit deeds etc
Your initial, informative half-hour consultation is only £60 plus VAT. Find the answers you have been looking for, today!