Our Property Development and Commercial Property solicitors and lawyers act for both sellers and buyers in relation to freehold and leasehold commercial buildings. The following sets out the process of when we are acting for the buyer. Our primary tasks include conducting due diligence, negotiating the terms of the purchase, and ensuring the legal transfer of the property is smooth and risk-free.
Pre-Contract Stage and Due Diligence
Freehold:
- Title Investigation: We check the seller’s title to ensure that the seller has legal ownership of the freehold interest. We look for any issues with the property title, such as restrictions, rights of way, charges, or other encumbrances.
- Searches: We carry out various searches to assess any potential legal or practical problems with the property. These include:
- Local Authority Searches: Check planning and building regulations entries
- Environmental Searches: Identify risks like contamination, flooding, or ground stability.
- Water and Drainage Searches: Confirm access to water services and identify who is responsible for maintenance.
- Chancel Repair Liability: Determine if the property may be subject to paying for church repairs.
- Survey and Valuation: We review the survey report and address any legal issues identified.
Leasehold:
- Lease Review: We closely examine the terms of any existing lease to ensure that the buyer is aware of their obligations, including rent, service charges, maintenance responsibilities, and whether there are any restrictions. We look at key lease provisions such as:
- The length of the lease and whether it can be renewed.
- Rent review clauses and break clauses.
- Restrictions on the use of the property.
- Responsibility for repairs.
- Landlord Consents: We will check whether the consent of the landlord is required for the transfer of the lease (assignment). If so, we arrange for the necessary Licence to Assign from the landlord.
- Service Charge Review: We investigate the history of service charges to ensure that there are no disputes and that they are reasonable. We review the management accounts for the building and check for any significant upcoming expenditures.
CONTACT US
If you wish to discuss a case with us, please contact Julian De Giovanni on 01420 81281 or fill in the form below.
Contract Negotiation
- Reviewing the Contract: The seller’s solicitor usually prepares the draft sale contract. We review the contract and negotiate any terms that may need revision, ensuring that key conditions are included to protect the buyer.
Finance and VAT Considerations
- Arranging Financing: If you are securing a mortgage to finance the purchase, we liaise with the lender to ensure that the loan documentation is in place. We also ensure that the property complies with the lender’s requirements, particularly concerning title and any potential restrictions.
- VAT: If the property is subject to VAT (for example, if the seller has opted to tax), we ensure that VAT is correctly accounted for in the transaction.
Completion
- Exchange of Contracts: Once both parties are satisfied with the due diligence and contract terms, we arrange for the exchange of contracts. At this point, you as the buyer will pay a deposit (typically 10%) and both parties are legally committed to the transaction.
- Pre-Completion Checks: Before completion, we conduct final searches, including checking for any new entries in the Land Registry or other issues.
- Completion: On completion day, we arrange for the balance of the purchase price to be transferred to the seller’s solicitor. We then ensure that we receive the transfer deed or lease, properly executed by the seller.
Post-Completion Formalities
Freehold:
- Transfer Registration: We register your interest in the property with the Land Registry. This involves submitting the transfer deed and any mortgage documentation (if applicable).
- Stamp Duty Land Tax (SDLT): We ensure that the SDLT return is filed, and the tax is paid within the required timeframe.
Leasehold:
- Lease Registration: For leases longer than 7 years, we will register your leasehold interest with the Land Registry, submitting the necessary documents.
- Stamp Duty Land Tax (SDLT): We ensure that the SDLT return is filed, and the tax is paid within the required timeframe. For leasehold properties, SDLT calculations can be more complex, as it depends on both the premium paid for the lease and the net present value of the rent payable.
Summary of Key Services:
- Due Diligence: Investigating title, reviewing leases, and conducting necessary searches.
- Negotiating Contracts: Reviewing and amending contracts.
- Finance and VAT: Managing mortgage requirements and VAT.
- Completion: Ensuring funds are transferred, and legal ownership is transferred.
- Post-Completion: Handling registration and SDLT returns.
“Thorough on acquisitions and smooth on sales. Proactive and commercially astute. Not fazed by dealing with large London or regional firms. Good sense of humour and remains calm under pressure. Gets the job done time and time again.”
“…I particularly wish to thank you for all your hard work, advice and support throughout, which has been a significant factor in enabling us to get to goal. I know that you have often spent a lot of time on this matter after normal office hours to ensure progress of the sale was maintained – all very much appreciated.”
“We use Julian De Giovanni because we have found him adept at identifying problems early on and then either resolving them or advising us of our position. He always has in mind the importance to us of being able to sell on completed units quickly and cleanly once we have concluded a project. Julian puts in the extra effort that is required to get the job done. He is contactable, answers the phone and replies to messages. He meets and exceeds our expectations whilst remaining a pleasant person to deal with! I have had no hesitation in recommending him to others.”
