The sale of a commercial property is an important and often sensitive time.
Whether you are selling a freehold, leasehold, auction, land or portfolio, our expertise in negotiating and drafting documents for commercial property will ensure your commercial property transaction is handled to meet your requirements. We understand the importance of deadlines and we work closely with clients, lenders and surveyors to ensure the transaction runs as smoothly as possible.
Our commercial property solicitors’ expertise
From retail property, to industrial and warehouse space, our expert commercial property solicitors can provide professional support at all stages of your transaction.
We have an in-depth understanding of the numerous factors you should consider when selling commercial property in order to maximise your returns and achieve completion within a reasonable timeframe.
We can assist in relation to sales involving:
- Auction property
- Portfolio or SIPPs investments
- Sales through special purpose vehicles
Our commercial team has experience working with all types of business, including sole traders, small to medium enterprises, and regional and national corporations. The law governing commercial property sales can be complex, but we will talk you through the law in detail and proactively anticipate and avoid challenges.
Selling commercial property – the process
We can handle the entire process of selling your commercial property on your behalf. Every transaction is unique and we will explain the process that will apply in your individual circumstances in depth. However, a typical sale may work as follows:
Before you can proceed with a sale, there are preparatory stages to complete. This includes gathering information such as:
- Title Deeds and other relevant Land Registry documents
- Planning permission documents
- Commercial EPC (Energy Performance Certificate)
- Information about Stamp Duty Land Tax, business rates and other costs
You will need to complete various CPSE Forms (Commercial Property Standards Enquiries) which must be provided to the buyer upon your initial agreement to transact.
We will also carry out various checks as required by law, such as money laundering regulations.
Instructing a commercial agent
Your agent’s job will be to market the property and find you a buyer.
Acceptance to exchange
Once you have found a buyer, we will send them the draft contract together with relevant documents, including the CPSE forms.
If you have a mortgage over the property, we will also contact them to obtain a redemption figure.
The buyer will conduct their own searches and investigations into the property and may make more enquiries, to which we will respond promptly. Once the buyer is satisfied, you will be ready to exchange contracts.
Once contracts are exchanged, the transaction will become legally binding and you will not be able to back out without incurring penalties. The completion date will also be set at this stage and the buyer will pay the deposit.
Exchange to completion
The sale does not officially complete until the buyer transfers the purchase price. We will redeem your mortgage (if you have one) and transfer the remainder to you (less any professional fees).
Costs for selling commercial property
Whatever type of commercial property you are selling, you need to take into account a number of costs:
- Solicitor’s fees – we offer flexible payment options to work with your budget and ensure the viability of your transaction. Wherever possible, we offer fixed fees and we are always upfront and transparent about our costs.
- Commercial agent’s fees – agents will typically charge a percentage of the sale price – usually around 1-3%. However, it is always worth trying to negotiate a better deal
- Mortgage redemption fee – if you pay your mortgage off early, you will probably be liable for fees. You should always make sure you are aware of these costs before deciding to sell
- Capital Gains Tax – you will likely incur CGT on any rise in value.
- Removal costs – you should ensure all your belongings are moved out of the property ready for the new owner, particularly if you are selling business premises
Why choose Lewis Denley’s commercial property solicitors?
At Lewis Denley, our committed commercial property solicitors have extensive experience working with individuals and businesses of all structures and sizes, from sole traders, to small to medium enterprises, to regional and national corporations.
We take a personalised approach to all matters, getting to know your business and its goals so we can align our strategy and advice accordingly. As well as our technical legal expertise, we can provide strategic market insight and innovative solutions to overcome a wide range of complex challenges.
We understand that value for money is essential when budgeting for a commercial property project. We are happy to discuss flexible fees with you that work for your budget, including fixed fees or capped budgets wherever possible.