When buying a commercial property freehold you own it outright. If you take on a leasehold property you are a tenant and have a right to occupy, subject to the terms of the lease. You need to ensure that you understand the consequences of each option.
The best option for you can vary depending on your individual situation and preference. Buying freehold can give you more control over what you do with the property and you can benefit in any rise in value of the property. Taking on a lease can give you more flexibility, with a smaller initial outlay. Shorter leases do not require a premium and you pay a passing rent. A freehold purchase can have a higher initial cost but over the longer period can be more effective than renting premises.
When buying or selling a commercial property, you will want peace of mind that the transaction proceeds as quickly as possible; with any issues ironed out at an early stage and there being no unexpected costs.
It is your responsibility to ensure a survey and inspection of the property is undertaken. This applies not only to the building but also the equipment, fixtures and fittings that may be included in the transaction. Certain rights, such as occupation of a footpath across the land, wouldn’t show up in title deeds or normal searches.
Acting for you as a buyer, we will be able to investigate the title to the property and report to you in plain English on what you will need to consider. We will check that you can use the property for your intended purpose and warn you of any potential problems the title reveals. We will ensure that any issues are resolved before completion.
When acting for you as a seller, we will draft the legal documentation required to enact the transaction on your behalf and negotiate with the buyer. We will answer any of the enquiries from your buyer’s solicitor on your behalf and manage the running of the transaction to ensure a swift completion. We will also act for your lender, if you have one, applying the sale proceeds to pay off and discharge your mortgage.
You can access a range of further information and tools to help you when buying or selling a commercial property in our Legal Resource Centre, or to discuss your situation and find out how Gardner Leader can help you then please contact one of our team below.