Are you buying business premises?
Whether you are a new or established business, buying business premises is going to be a substantial investment for you or your company. At AFG LAW we have experienced solicitors who can help you at all stages of the transaction. With costs starting from £795.00 plus VAT we can help you. Please call us on 0161 359 3897 or drop us an email on commercialpropertyenquiries@afglaw.co.uk and we will contact you to discuss the transaction in more detail.
10 questions to ask when buying business premises
Survey: does the property have any structural issues? It is always advisable for a business to have a survey carried out on premises that are to be bought. Once completion has taken place a buyer will not have any claim against a seller for the cost of repairing structural issues.
What terms have been agreed? Have the estate agents issued a Memorandum of Sale or Heads of Terms? Do I understand them? Have I agreed to all terms that are set out. It is important to check these documents properly and get legal advice on them before agreeing them. Whilst is most cases these documents are not legally binding a misunderstanding at this stage will only lead to wasted time and legal fees in the course of the transaction.
Timescales: What is my timescale and what is the Seller’s timescale? Both Sellers and Buyers should be honest about their timescales and when they wish to complete the transaction. This should be discussed at an early stage. Is there anything that you are aware of that could prevent you achieving these timescales?
Planning Permission: what is the property currently use for? Does the property have planning permission for my intended use? A property should have planning permission for your proposed use. If you are buying with the aid of a mortgage your mortgage lender will not allow completion to take place without the appropriate planning permission being in place. If you are buying without a mortgage then you are free to buy without appropriate planning permission but you do run the risk of the council taking enforcement action.
Money: what is my budget? In addition to the purchase price, what else do I have to pay? You should build into your budget additional payments such as VAT, stamp duty land tax and professional fees.
Funding: How will you be funding the transaction. Do you need a mortgage? If you do, you should ensure that it is applied for as early as possible so that the mortgage offer is issued in good time.
VAT: has the seller “opted to tax” the property? If so VAT will be payable in addition to the purchase price.
Covenants: Is the property you are buying leasehold or freehold? Is the property subject to any covenants that will affect your use of the property?
Buildings Insurance: Can you get buildings insurance for the property? Are there any issues that will affect you getting buildings insurance? Do you need any other insurance for the property? Such as public liability insurance, loss of rent insurance or plate glass insurance?
Boundaries: What land am I buying? Do the boundaries on the Land Registry title plan accord with the physical boundaries at the property? Does the Property immediately abut a public highway? If not, how is access gained to the Property?
Our commercial property team can help you with a full range of legal services.
Contact commercialpropertyenquiries@afglaw.co.uk for further information or call us on 0161 359 3897
