Buying a Freehold Commercial Property – FAQs

By Monarch Solicitors
Last updated on April 16, 2020

As a business one of the greatest achievements will be buying your own premises, be that with cash or through the assistance of a mortgage.

If you are purchasing your property with cash then the transaction generally is a lot easier and smoother because you don’t need to worry about the bank.

However, there are a number of common questions that we encounter from clients and the answers are always the same:

Should I have searches carried out on the property?

Given that you are paying cash for the property the choice is yours.

If you have been a tenant at the property you may have had searches carried out when you took on the lease. If you haven’t been a tenant at the property then it is always advisable to have searches carried out on the property to avoid any nasty surprises in the future, for example the permitted use of the property.

Should I instruct a surveyor to consider the structure of the property?

The simple answer is yes.

A surveyor carrying out a structural assessment will give you one of two things – peace of mind the property is structurally sound; or they will highlight issues with the property.

Should I have a valuation carried out?

It is always advisable to have a valuation carried out of a property especially if the deal has been agreed without any agents being involved. You want to ensure that you are not paying over the odds for the property.

Should I pay for the property in cash or should I obtain a loan?

This is at your discretion. You must consider the financial benefits and consequences of each option and weigh up what is best for your business no one else.

What will a solicitor do for me?

Some of the work a solicitor can carry out for you is:

Obtain contracts and title documents
Drafting the Transfer form
Carrying out searches
Liaise with the bank for a report on title
Arrange and advise for any stamp duty land tax to be paid and for the property to be registered at the Land Registry.

Throughout the process your solicitor will be ensuring that there is nothing from the documents that can cause you an issue either now or later.

It is however, extremely important that once you decide on a property and a date of exchange or exchange and completion has been agreed; that you visit the property to ensure that there has been no damage or alterations made since you made the offer. This is because once exchange has taken place you are in a legally binding contract to complete the transaction on the date agreed as failure to do so will result in legal fees of the sellers’ solicitor being passed on to you the buyer.