At AFG LAW, we know that dealing with commercial property transactions can feel overwhelming. Whether you are buying, selling or leasing business property, there are always important legal issues to consider. Our team of experienced solicitors is here to guide you through the process, protect your interests, and help you make informed decisions.
This guide answers some of the most common questions clients ask us about commercial property transactions.
What is a commercial property transaction?
A commercial property transaction involves buying, selling or leasing real estate that is used for business purposes. This could be anything from offices and shops to warehouses and industrial units. Unlike residential property purchases, commercial property deals are usually much more complex. They can involve value added tax (VAT), leases, planning permission issues that might affect the property both now and in the future.
When you instruct AFG LAW, our commercial property solicitors will ensure you fully understand every step of the transaction and the implications for your business.
What is due diligence and why is it so important?
One of the most important stages in a transaction is due diligence. This is where we investigate the property thoroughly before contracts become legally binding. It is our role as solicitors to:
- Review the title deeds to make sure the seller has the right to sell.
- Check whether restrictions or covenants could affect the property.
- Confirm the property has the necessary planning permission.
- Highlight any potential environmental or climate risks.
- Identify any ongoing disputes or other legal issues.
We carry out thorough detailed checks to ensure you are not surprised by hidden problems later. Without due diligence, you risk running into complications or legal issues following completion.
How long does a commercial transaction take?
“How long does a commercial transaction take?” is one of the questions our clients ask most often. In straightforward cases, most commercial property purchases or sales take between 8 and 12 weeks. However, several factors can slow things down, such as:
- Delays in mortgage offers.
- Complications with planning permission.
- Issues uncovered with the title deeds.
- Negotiations around lease agreements if the property is being let.
- Seeking Landlord’s consent if the property is leasehold and consent is required.
At AFG LAW, we do everything possible to keep the process moving as swiftly as possible. If you instruct us early, we can start on the paperwork, anticipate potential problems, and avoid unnecessary delays.
What costs should I expect?
The purchase price of the property is only one part of the overall cost. Other expenses are likely to include:
- Solicitors’ fees.
- Surveyor’s fees.
- Stamp Duty Land Tax (SDLT).
- Land Registry charges.
- VAT (if applicable).
- Searches
We will always explain the likely costs to you at the outset, so you can budget properly and avoid surprises.
What legal issues might come up?
Our commercial property team regularly deal with a wide range of legal issues in commercial property transactions, including:
- Disputes over title deeds.
- Restrictions on how the property can be used.
- Problems with tenants already in place.
- Planning permission complications.
- Onerous clauses hidden in leases.
These problems can have a major impact on your investment or future plans for the property. That is why working with an experienced solicitor is essential.
Should I buy or lease business property?
Whether you choose to buy or lease a business property will ultimately depend on your circumstances and your business goals.
- Buying gives long-term stability and the opportunity to benefit from property value increases. But it comes with higher upfront costs and long-term responsibility.
- Leasing may be more affordable and flexible, especially for new or growing businesses that do not want to be tied down.
If you are considering selling or leasing your property, we can also help negotiate terms and draft agreements that protect your interests.
When does a commercial property contract become legally binding?
Until contracts are formally exchanged, neither side is committed to the transaction. Once they are exchanged, the agreement becomes legally binding, and both parties must complete.
Before you reach this stage, we make sure you are comfortable with all the terms and that your position is fully protected.
What are the common pitfalls in commercial property transactions?
We often see the same mistakes in commercial property transactions, with the most common being:
- Rushing through due diligence.
- Overlooking planning permission requirements.
- Signing documents without legal advice.
- Underestimating costs beyond the purchase price.
- Entering into leases that contain hidden obligations.
At AFG LAW, our role is to make sure you avoid these pitfalls. We take time to explain the risks, so you can make confident decisions.
How do market trends affect commercial property?
The commercial property market is influenced by wider market trends, such as interest rates, demand in specific sectors, and economic conditions. For example, while retail spaces may be under pressure, demand for industrial and logistics property has been rising.
Understanding these trends before buying or selling a commercial property can make a significant difference. Our solicitors can advise you on how current conditions might impact your deal.
When should I seek legal advice?
The sooner you seek advice, the better. Contacting our commercial property team early means we can:
- Provide advice on the transaction structure and possible cost or tax saving opportunities
- Identify any issues that may affect the property.
- Help negotiate the best terms.
- Manage the transaction efficiently.
- Protect your long-term interests.
At AFG LAW, we pride ourselves on being approachable, practical, and focused on getting results for our clients.
How AFG LAW can help
Commercial property transactions are an important step for any business. With so much at stake, it is vital to have trusted solicitors on your side. At AFG LAW, we combine legal expertise with a personal approach. We will guide you through the process, explain complex matters in plain English, and ensure your deal completes as smoothly as possible.
Whether you are buying, selling or leasing, we are here to protect your investment and help your business succeed.
Please call us or drop us an email at commercialpropertyenquiries@afglaw.co.uk to discuss your matter in more detail.