Do I Need a Solicitor to Buy Commercial Property?

Running your own business can be an exciting prospect, but it comes with many challenges, obligations and liabilities which you must consider carefully. One of the largest outlays can be buying commercial property which can be an important opportunity and is often a major investment.

Whilst there are some similarities between residential and commercial properties, there are often many different aspects to consider and it is therefore important to take legal advice at an early stage to establish if the property is right for your business. It is therefore essential you instruct a solicitor to act on your behalf.

Why a Solicitor Is Essential in Commercial Property Transactions

1. What are the key issues to consider with the purchase of a Commercial Property?

Commercial property involves considering detailed legal issues, including:

• Title restrictions and covenants – to establish what obligations you may have to carry out and if there are any restrictions limiting the way you can use the property
• Rights of access and easements – to establish how you can access the property
• Planning and lawful use – to establish what the property can be used for
• Environmental liabilities – to establish what you need to consider about the surrounding areas
• VAT and Transfer of a Going Concern) TOGC rules – to establish how you might be affected by the sale or transfer of a business
• Lease obligations (if the property is tenanted) – to identify the landlord responsibilities you will take on

A solicitor ensures the property is legally sound, meets the needs of your business so that it is suitable for your intended use. Getting this wrong can be costly and detrimental to your business.

2. What will a Solicitor do to help with the purchase of a Commercial Property?

Solicitors Carry Out Critical Due Diligence

Your solicitor will conduct extensive checks to uncover risks that may affect value, use, or future development. These include:

• Title investigations
• Local authority, environmental, and drainage searches
• Reviewing planning permissions and building regulations
• Checking asbestos and fire safety compliance
• Analysing leases

This due diligence protects you from hidden liabilities so that you know exactly what you are investing in and purchasing.

3. Can a solicitor help with contract negotiations?

Commercial contracts are bespoke and heavily negotiated. An experienced commercial solicitor will:

• Draft or negotiate the Sale and Purchase Agreement
• Clarify responsibilities for repairs, VAT and completion conditions
• Manage replies to enquiries and resolve legal issues

Without legal support you are at risk of agreeing to unfavourable or unclear terms and might significantly affect your business.

4. What tax will I have to pay on a commercial property purchase?

Commercial property tax rules are intricate. An experienced commercial solicitor helps determine:

• Whether VAT applies
• If the purchase qualifies as a Transfer of a Going Concern (TOGC)
• SDLT liability and filing requirements
• Capital allowances position

Applying and paying the correct taxes is essential as incorrect tax treatment can lead to costly penalties.

5. How involved will the solicitor be in managing the purchase of a commercial property

Using a solicitor from the outset is essential to ensure that the purchase is properly coordinated from the beginning. Typically, a solicitor coordinates the legal process from offer to completion, ensuring:

• All conditions are satisfied
• Funds are transferred securely
• Stamp Duty Land Tax (SDLT) returns are filed correctly
• Land Registry registration is completed

At Lawson West, our specialist Commercial Property Team have significant experience in handling all types of commercial property matters, in respect of both leasehold and freehold  purchases. These range from small businesses up to multi-million pound operations. We are here to support you every step of the way and with a focus on impeccable service standards our aim is to for you to have every confidence in purchasing the correct property for your growing business.

“We have used Namisha from Lawson-West for several property purchases. She is very professional, reliable, honest and efficient with the work she does. Her communication skills are beyond expectation.” JB

To discuss future commercial property transactions or secured lending options, please contact commercial property solicitor Namisha Nijjar, on 0116 212 1058 or email nnijjar@lawson-west.co.uk .

Know more about the Lawson West Commercial Property team.

Please note that this is a basic overview only and should not be construed or relied upon as advice. This summary is strictly confidential and should not be released to any third party without our express written consent, except in circumstances where required by applicable laws or regulation. Lawson West Solicitors Limited accepts no duty of care to any third party in connection with this summary.