Commercial Property Solicitors

Commercial conveyancing is the sale or purchase of a business property and often also refers to the leasing of commercial premises. Agreements for sale and commercial leases are complex, involving onerous obligations on the part of both parties.

In taking on commercial premises, it is essential to ensure the contract is tailored to suit your requirements and that your liabilities are limited as far as possible, as once you have entered into the agreement, it is not always easy to leave.

If you enter into a lease, you need an experienced commercial property solicitor who will be able to ensure that you do not end up having to pay for expensive repairs and maintenance for issues that were a problem before you took on the property.

Once you have found a commercial property to buy, you will usually agree heads of terms with the seller. This is a list of the intentions of both parties in respect of the transaction and will include issues such as the purchase price, the rights that are included, covenants or restrictions in respect of the property, conditions of the sale, such as a satisfactory survey and the proposed dates for exchange of contracts and completion.

The seller’s solicitor will draw up the sale agreement and provide the buyer’s solicitor with property information, to include a copy of the legal title, details of any tenancies and standard replies to commercial property enquiries.

The buyer’s solicitor will order searches and go through all of the information supplied by the seller’s solicitor, raising appropriate enquiries.

If you will be obtaining finance, this will also be arranged at this point, with agreements sent to your solicitor.

Once your solicitor is satisfied that everything is in order and the terms of the contract have been agreed, you will provide a deposit and contracts will be exchanged. This is the point at which the purchase becomes legally binding and the date for completion will be set.

If you are selling a commercial property, your solicitor will be the one responsible for drawing up the contract and will work with you to answer the enquiries raised by the buyer’s solicitor prior to exchange of contracts.

Experienced commercial property lawyers will be able to negotiate terms on your behalf to ensure that the best possible deal is agreed.

A commercial lease grants the tenant exclusive possession of the property for a fixed term in return for the payment of rent.

A licence to occupy is permission to use property or land but does not grant exclusive possession. It is generally a far less complicated document and will often allow either party to end the agreement at short notice.

A commercial lease is a complex and lengthy document covering all the rights and responsibilities of the tenant. Most businesses will want to secure a commercial lease as it provides more security as well as more rights, for example, in their usage of the property and changes they may wish to make.

It can take a considerable amount of time to negotiate and agree a commercial lease. A licence to occupy is a quicker and simpler document and is sometimes used to allow a potential tenant into premises while the terms of a lease are agreed upon.

It is essential to look at what is contained in your lease. Your lease may provide you the rights to assign the lease, sublet or give notice. If so, exercising any of those rights can assist you in exiting the lease or allowing someone else to take over the existing lease.

If you can assign the lease or sublet the premises, you should look into whether your responsibilities and liabilities continue to take effect or if they will no longer apply to you completely.

We can provide tailored advice on what this can mean for your business and what responsibilities you may retain should you decide to assign the lease or sublet the premises.

It depends whether you have entered into an Overage agreement with the buyer. This will set out the terms upon which any increase in value is to be determined and distributed.  It is important that consideration is given to the terms to ensure that it is effective. Key terms that need consideration include:  how the Overage payment is calculated; when the payment is triggered; and the duration of the Overage.

If you have not entered into an Overage agreement, then you will not be entitled to any further payments and it is very unlikely any buyer would enter an Overage agreement after completion.

We can tailor an Overage agreement specific to your sale to ensure you get the best outcome and advise you on the terms of the agreement and how they will impact you.

The payment of VAT on rent depends entirely on whether the landlord has decided to opt to tax for VAT purposes. If the landlord has not, then rental payments are exempt. We will investigate during the transaction whether VAT is payable on the rent and discuss with you what this will mean for your business.

Reading a commercial lease, or any legal document, can be quite difficult to understand at first glance. Clauses can have a significant implication for your business from a legal standpoint and it is important to seek advice as to what the lease means for your business.

You will be able to have your responsibilities and liabilities set out in a clear manner, allowing you to understand what you are taking on to prevent any expensive consequences down the line.

At Kingsfords, we deal with a large amount of commercial leasehold transactions and can provide excellent advice on what the lease means for your business. We can walk you through the steps of the transaction from the agreement of the heads of terms, right up to the completion of your lease.

Yes, this is possible. You can enter an agreement with the seller whereby the sale is subject to gaining planning permission. There are two methods of doing this either an option agreement or a conditional contract.

There are differences between the two types but one of the main differences is that with a conditional contract once satisfactory planning permission is obtained, the buyer is compelled to purchase the land. However, with an option agreement there is no obligation on the buyer to purchase.

With both types of contracts, it is very important that consideration is given to the terms of the document to ensure that the terms are clear.

We regularly deal with these types of contracts and can tailor them to suit you and your circumstances. This will give you the reassurance that are not going to spend money on purchasing land to later find out you cannot develop it due to planning constraints.

This would depend on how long your lease is, the amount of any premium paid and how much rent you will be paying over the lease term. Based on these factor a complex formula calculates the net present value. The current threshold is £150,000.00 for commercial property.

When taking instructions from you, we will investigate whether you will be liable to pay SDLT and, if so, the amount that is. We will assist you in the preparation and filing of your Stamp Duty Land Tax return as part of the transaction if you are taking on a new lease.