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Commercial Property Solicitors.
At MG Legal, our commercial property solicitors recognise how important- and often urgent- it can be when you are looking to purchase or lease commercial premises.
Our highly-experienced solicitors can deal with a variety of commercial property purchases, giving us invaluable experience and local knowledge to assist with your commercial purchase.
From commercial property purchases to the review of commercial leases, our Commercial Property Solicitors can assist, at a reasonable fixed cost. Contact us today.
Stages of buying a commercial property.
#1
Once you have found a commercial property you wish to purchase, you will need to make a written offer to the Vendor or the Vendor’s Commercial Estate Agent. Read our 10 Tips for Buying your first Commercial Property, below.
#2
Remember that you should only make an offer, once you know how you will fund the purchase.
#3
If you offer is accepted, you should look to request that the property is removed from the market.
#4
Instruct MG Legal. Your conveyancing solicitor at MG Legal will send you various documentation, which you will need to sign and return. If you are buying a commercial property in the name of a company then the Solicitor will act for the Company rather than you as an individual.
#5
A sale agreement with the main points of the sale agreement will be drafted once your offer has been lodged and accepted. This is called the Heads of Sale agreement.
#6
Your property solicitor at MG Legal will investigate the title of the commercial property and arrange the pre-contract searches.
#7
On the back of these investigations, your solicitor will raise any necessary+
enquiries that have appeared as a result of the Searches, the title and the CPSE Enquiries (Commercial Property Standard Enquiries). Along with the Enquiries, the Solicitor will draft a Transfer and if you are obtaining Mortgage Finance the Mortgage Offer will be checked.
#8
VAT may also need to be considered for commercial transactions.
#9
If the property is not Freehold, your solicitor will consider the Lease Terms or the Property and raised enquiries with the Landlord.
#10
Once all issues and enquiries are resolved, a report letter will be sent to you along with all the documentation that will require your signature.
#11
When your property solicitor has all your signed documents and cleared deposit funds, then you can look to begin to set dates for exchange of contracts and completion.
#12
When the contracts have been exchanged the transaction will be deemed legally binding.
#13
Your property solicitor will provide you with a financial statement to enable you to provide the balance monies in order to complete.
#14
On Completion, Stamp Duty will be paid and the transaction will be registered with the Land Registry.
What do commercial property solicitors do?
Solicitors who specialise in commercial property draft business leases, and advise on the sale and purchase of any property used for business purposes. From a high-street shop in a local town or village, to a piece of land sold to an investor for development, if you are buying, selling, or even thinking of leasing a commercial property, get in touch with the commercial property solicitors at MG Legal. We only employ highly-qualified, well-experienced solicitors, with a wealth of knowledge of commercial property transactions, and, if you are new to the commercial property world, can walk you through the process from start to finish. For those who have dealt with commercial property sales and purchases before, and are looking for a commercial property solicitor to get things moving quickly, then get in touch; we will not disappoint.
Our commercial property solicitors are friendly, local, and most importantly, efficient
Our commercial property solicitors can assist those looking to rent a commercial property, by advising on the terms of a lease of a commercial property. If you are a commercial property owner, our property team can draft a business lease to suit your requirements. We work with you to get the job done as efficiently as quickly as possible, and all for a fixed, transparent fee, agreed from the start.
Or, If you are looking for a fixed-fee quote from one of our commercial property solicitors for buying or selling a commercial property, and need a conveyancing solicitor with local knowledge, a pro-active approach, and a lot of common sense, contact a member of our team today to discuss any commercial property issue.
10 tips for buying your first commercial property.
#1
Determine your investment budget and your return goals. I.e. what can you afford to buy and what can you afford to lose?
#2
Study and investigate the current state of the commercial property market – do your homework and learn the ins and outs of the current market!
#3
Research the area and find a Surveyor you trust.
#4
Learn the jargon, it will help you feel a little bit more in control.
#5
Know what type of property you want to invest in and what area you want it to be in.
#6
Make sure the property is right for the business. Old buildings, whilst beautiful, can be money pits when it comes to maintenance.
#7
Set realistic objectives. Keep your goals in mind, know how you will purchase, study the market and be patient.
#8
Get your financing in order, from savings, banks, mortgage companies, building societies or more creative funding such as earn-outs all can be options, and all will depend on your goals.
#9
Examine your own experience, commercial property is complicated and any experience you may have should be relied upon!
#10
Examine all possible avenues of Return on Investments; can you sell signage space to other local businesses?
Commercial Conveyancing FAQs
You must speak to your accountant or take independent financial advice before deciding if the company or business buys the property or if some or all of the Directors of the Company will buy the property or if a private individual will buy the property.
Long leasehold is usually offered where the property forms part of a larger complex. Before making an offer on a property with long leasehold you should ask the following:
- The Lease Term – how many years until the lease expires
- Ground Rent – How much is payable each year
- How often is the ground rent reviewed?
You pay Stamp Duty based on the value of the property:
|
Property premium |
SDLT Rate |
|
Up to £125,000 |
Zero |
|
£125,001 to £250,000 |
2% |
|
£250,001 to £925,000 |
5% |
|
£925,001 to £1.5 million |
10% |
|
Over £1.5 million |
12% |
For example, if you buy a property worth £295,000, you would pay Stamp Duty as calculated below. This calculation is based on the example purchaser being a previous property owner (different Stamp Duty rates apply, as first time buyers).
0% Stamp Duty on the first £125,000 = £0
2% Stamp Duty on the next £125,000 = £2,500
5% Stamp Duty on the final £45,000 = £2,250
Total Stamp Duty payable = £4,750
To find out how much Stamp Duty you will need to pay, use the gov.uk Stamp Duty calculator, here.
First time buyers can claim a relief on Stamp Duty, so they do not pay any Stamp Duty on properties with a value up to £300,000 (providing the property value is less than £500,000). You then pay 5% on anything between £300,001 and £500,000.
Purchasers who are buying additional property will have to pay an additional 3% on top of the above Stamp Duty rates, if the purchase means that you will own more than one residential property.
If you are a non-UK resident, you may have to pay a 2% surcharge on top of the above Stamp Duty rates.
There are different Stamp Duty rates and calculations if any of the following apply:
You are a corporate body
You are buying 6 or more residential properties in one transaction
You are buying a Shared Ownership property
Multiple purchases or transfers (between the same buyer and seller)
A company or trust buying residential property
Purchases that result in ownership of more than one property
Often Commercial properties are subject to 20% VAT on the sale price. The Seller must confirm whether VAT is payable. Often the VAT can be reclaimed but if the person buying the property is an individual or non VAT registered then VAT cannot be reclaimed.
If the property shares amenities or facilities with other premises the Buyer will be required to pay a due proportion of any service charge.
Legal Fees
Broker Fees
Stamp Duty Land Tax (in England and Northern Ireland)
Notice Fees is the Property is not Freehold
Land and Buildings Transaction Tax (In Scotland) or Land Transaction Tax (in Wales)
VAT
Any fees associated with arranging a commercial mortgage
Decorating/refurbishing the commercial property
Fitting out the area with furniture and equipment
Setting up any facilities including utilities and IT
Maintenance costs of the building
Insurance
Local Authority Charges
Business Rates
VOA valuations are business rates which are revised every five years. The business rates are revised every five years and the local council will provide you with a business rates bill each year. There are exemptions available such as small business relief.
Classes of Commercial Property:
Commercial Property is divided into classes of use under the Town and Country Planning (Uses Classes) Order 1987. The Legislation governs what business can be carried out at the property and you should ensure that the Commercial Property you plan to buy can be used for that which you intend to use it for.
The Classes are defined as follows:
• A1 shops
• A2 financial and professional services
• A3 restaurants and cafés
• A4 drinking establishments
• A5 takeaways
• B1 business
• B2 industrial
• B8 storage or distribution
• C1 hotels
• C2 residential institutions
• C2A secure residential institution
• C3 homes
• C4 houses in multiple occupation
• D1 non-residential institutions
• D2 entertainment and leisure
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