If you opt to buy a commercial property rather than lease business premises, you need to consider the following 5 factors:
1. Choosing the right property.
First of all, it is vital you choose the right property to suit your business. For example, you need think about: the location and whether it is appropriate for your business, how many alterations must be carried out, and if the price is similar to those in the surrounding area.
2. Financial costs.
You must also factor in the cost of buying a commercial property. While many may believe that renting is more expensive in the long-run, you need to remember that mortgage payments can in fact be higher than rental payments. You will also incur extra on-going costs when you own a commercial property, such as business rates and local authority charges. Therefore you need to look beyond the cost of the transaction and take time to calculate the actual expense of running a commercial property. Otherwise you could find yourself in a sticky financial situation.
3. Additional responsibilities.
When you own and operate from a business premises, you will be automatically bestowed with additional responsibilities. Amongst other things, you will need to comply with health and safety regulations and keep up-to-date with safety checks. This will increase your liability.
4. The condition of the property.
Even if you believe you have found the right property, it is important to employ a surveyor to assess the condition of the building. There could be underlying problems that need addressing, which could prove to be costly. You also need to enquire about the building’s energy performance, and request an Energy Performance Certificate from the vendor.
5. Using a solicitor.
When buying a commercial property, you should instruct a lawyer from the outset. Early legal advice is extremely important, as they can assist you with all of the above. A solicitor can help you choose the best property, advice you on financial costs and liaise with lenders or bankers, carry out checks on the property and give you guidance on your legal obligations.
When it comes to the property transaction, having a commercial property solicitor on your side will help you to get the best deal possible. A legal expert will also ensure that any pitfalls are quickly identified and rectified, potentially saving you a great deal in terms of time and money.
How Can A Solicitor Help?
When you instruct a good solicitor, you can expect them to fulfill the following duties:
* Negotiate a Heads of Terms Agreement which will set out the terms of the property transaction, helping to ensure it reflects your best interests;
* Carry out the necessary searches, making sure the title is ready to be passed on;
* Carry out a thorough due diligence check;
* Negotiate with bankers and mortgage lenders;
* Complete the transaction as quickly as possible, without compromising the transaction;
* Submit Stamp Duty Land Tax forms;
* Register the title with the Land Register.
Speak to A Solicitor Today.
If you are buying a commercial property and are in need of legal assistance, a solicitor can help.