Commercial property transactions to include sales, purchases, taking leases, negotiating heads of terms, granting leases, rent reviews, service charges, property management, dealing with landlords, security of tenure issues, assignments, sub lettings, obtaining finance, dealing with the property related aspects of buying or selling shares in or the assets of a company and many more areas of expertise besides. Whether buying or leasing, selling or mortgaging, it is always a huge commitment dealing with industrial, office and retail space. Pindoria Solicitors is among the best commercial property solicitors London.
You will need the very best legal advice to ensure you make the right decisions and our commercial property lawyers are here to help you.
We will be more than happy to discuss your commercial property needs, please contact us for an initial discussion and a fee estimate.
What costs are involved in leasing a commercial property?
There are many costs involved in leasing commercial property, and you must know the terms and conditions before signing on the dotted line.
Although this is by no means a complete list, it should give you an idea about commercial lease costs.
- If you are signing a full-service agreement, you have to pay the rent while the landlord will take care of the other operating expenses as a tenant.
- If you are under a modified gross lease, the tenant will pay the base rent, utility expenses and a percentage of the operating costs.
- The tenant pays the rent, taxes, maintenance, insurance, repairs, and other building expenses for a double net lease.
While there are more options available, commercial property solicitors will guide you on which lease is most beneficial for both parties.
What are the costs of buying a commercial property?
In addition to the purchase cost, there are additional costs involved in buying a commercial property.
- SDLT or Stamp Duty Land Tax is levied on the property transaction costs paid to the buyer.
- The property occupier pays business rates on commercial properties in Wales and England.
- VAT or Value Added Tax is charged at 20% of the purchase price of commercial property.
- Contractual or ongoing costs include repairs and maintenance fees, service charges, insurance and energy costs.
When looking for commercial property to buy, make sure you consider these costs so that the investment fits into your budget.
When do I need a commercial property solicitor?
Buying a commercial property is, without a doubt, an enormous investment for any business. It is always recommended to seek out credible and experienced commercial property solicitors who make sure you are legally permitted to use the property for commercial purposes.
A commercial property lawyer will verify the validity of the property title, make sure all the necessary taxes and permissions have been obtained, and ensure that all the tenant obligations are complied with.
Do commercial tenants have any rights?
Yes, provided you haven’t breached the contract in any manner.
The commercial tenancy agreement allows all tenants the right to occupy the said property for as long as stipulated in the contract. Besides, they also have the right to run their business in the property for the said period. However, the landlord can, by law, evict the tenants from the property if there is a cause and breach of contract terms. Further, as per commercial tenants rights, agreements require written 30-day notice for eviction.
How much does a commercial property solicitor cost?
In addition to the property’s purchase price, you have to also allocate funds for commercial property solicitors fees. It is always a good idea to contract experienced solicitors to help you draft a water-tight legal agreement.
When compared with residential conveyancing, commercial property conveyancing costs are high. Commercial conveyancing is the term used to refer to the legal process of transferring ownership of a commercial property, land or building to conduct business from one person to another.
Besides the commercial conveyancing fees, you will also be required to pay the solicitor fees for investigating the property title, negotiating the contract, searching the property, ensuring finances are in order and paying mandatory taxes on behalf of the buyer.
What should be included in a commercial lease?
Although several pre-prepared templates are available on the internet, these formats might miss out on a few case-specific points that could be beneficial to your cause. It is good to go with a reliable commercial property solicitor when picking a commercial space for rent.
A solicitor will be able to draft an excellent commercial lease agreement that includes,
- The lease duration
- Lease renewal options
- Dispute resolution
- Rent, maintenance charges, insurance, taxes, increase in rent, security deposit and more
- Subletting permissions
- Lease termination
These are some of the most critical elements of commercial property for lease agreement. And, you must make sure these are included in the final document.