Solicitor for Buying Commercial Property

How do you buy commercial property?

The legal steps are similar to buying a home, but the checks go further. Once a price is agreed, your solicitor investigates the property, negotiates the contract, and completes the purchase and the registration.

The main legal steps are:

1. Agreeing the heads of terms: the price and the main conditions of the deal.
2. Investigating the title, the searches and the seller’s replies to the standard commercial enquiries.
3. Checking planning, any existing leases and, if you are borrowing, your lender’s requirements.
4. Negotiating the contract, then exchanging contracts and paying the deposit.
5. Completing the purchase, then dealing with stamp duty land tax and the registration at HM Land Registry.

Whether a particular property is a good purchase for your business is a decision for you and your other advisers. I deal with the legal side.

What does a commercial property solicitor do when you buy?

A commercial property solicitor makes sure you know what you are buying, and what comes with it, before you commit. When I act for you, I:

• check the legal title and any rights, restrictions or covenants affecting the property;
• order the searches and review the seller’s replies to enquiries;
• review any existing leases, so you understand the rent, the tenants and their obligations;
• negotiate the contract with the seller’s solicitor;
• report to you in plain English before you exchange;
• deal with your lender, if you are borrowing;
• complete the purchase, submit the stamp duty land tax return and register you as the owner.

Do you pay stamp duty on commercial property?

Stamp duty land tax may be payable when you buy commercial property. As part of the purchase, I prepare and submit the return to HM Revenue and Customs and tell you what needs to be paid and when.

I explain the process, but I do not give tax advice. If your purchase raises tax questions, please speak to your accountant or a tax adviser.

Is VAT charged on commercial property?

Sometimes. VAT can be charged on the price, for example where the seller has chosen to charge VAT on the property.

I check the VAT position in the contract and in the seller’s replies to enquiries, and I raise it with you before you commit, so you can take advice from your accountant. I do not give tax advice on VAT.

Buying a property with tenants

If the property is let, the leases come with it. I review each lease and the information about the rent and any arrears, so you understand the income and the obligations you are taking on.

How it works

1. You tell me about the property, the price and how you are funding the purchase.
2. I send you a fixed-fee quote and tell you which firm will act for you.
3. Identity checks and documents are handled online.
4. I investigate the property, raise enquiries and negotiate the contract.
5. I report to you, you sign online, or by post where that is needed, and we exchange contracts.
6. On completion, I deal with stamp duty land tax and the registration.

Fees

My fixed fees for buying commercial property depend on the value of the property. They are on the Fees page, shown plus VAT and including VAT.