When buying a commercial property there are a number of points to consider and we can provide you with guidance throughout, as getting it right is of significant importance for a business to have a true commercial advantage.
We can give advice on the following:
- The best way to finance the purchase
Usually clients would be looking for a commercial loan from a bank. A bank will normally lend if it believes in the profitability of the business but the terms of any loan should be carefully scrutinised by a legal adviser who will make sure that you fully understand all the conditions of the loan. The bank will also expect to be granted sufficient security to be able to get their money back if things go wrong. You may be asked to put your own home up as security but you must ensure you obtain legal advice before doing so.
- How conveyancing procedure works
The basic structure of a commercial property purchase is much the same as a residential purchase. Once you have found the commercial premises you wish to purchase we would prepare and submit a written offer on your behalf. The seller’s solicitor will then usually issue a qualified acceptance of the offer deleting or qualifying some of the many legal conditions contained in the offer or adding in some of their own conditions on behalf of the seller. These qualifications will be carefully gone over with you as the purchaser and they will either be accepted or further modifications will be made in writing by us on your behalf. When the conditions of the offer and acceptance are finally agreed the missives are said to be concluded and there is a legally binding contract in place with neither the purchaser nor the seller being able to withdraw without penalty. The title deeds ,searches and property reports will be examined by us and the content explained to you. We will prepare the deed for the seller to sign transferring ownership of the premises to you. We will obtain funds from the bank and any monies you are contributing and pay the purchase price to the seller’s agent on the date of entry. The keys will then be released to you. We will pay any stamp duty due and we will register the title deed in your favour in the Land Register of Scotland.
- Fully certifying commercial premises for its intended use
In a commercial transaction it is extremely important to check that all the relevant planning Consents are in place in respect of the proposed use of the premises. There are a number of different planning permissions needed for different uses of commercial premises such as shops, food and drink outlets, storage and distribution, hotels or business amongst others and we can check that the relevant permission is in place or can assist in applying for a change of use
- Advice on who should be in the title of a premise
Businesses may be formed as a partnership, a franchise, a sole trader or a limited liability company for example and which entity is used will depend on a number of factors. The over-riding purpose of taking title in a certain name is to protect business owners from personal liability. By taking expert legal advice on avoiding personal liability, owners can protect their personal assets from being at risk of any creditors of the business.
Have more questions relating to Commercial Property? Go back to the Commercial Property page for help from our expert team.
Need more help for your business? Visit our Services for Businesses page for details of how our experts can help you.