Due diligence process
Conducting due diligence is critical to avoid potential pitfalls when buying commercial property. This process includes:
● Property searches: Verify the legal title through the land registry and check for any restrictions or encumbrances.
● Planning permission: Ensure the property has the necessary town and country planning permissions for your intended use.
● Environmental checks: Assess the environmental status and any potential liabilities.
● Financial review: Evaluate the ongoing maintenance costs, mortgage repayments, and rental income potential.
● Legal considerations: Review the sale contract, lease term and any existing lease agreements if the property is tenanted.
Making an offer and negotiating
Once you have identified a suitable business property and completed your due diligence, make a formal offer.
Negotiation is often required to agree on the purchase price.It’s important to remain firm yet flexible during this stage to achieve a favourable outcome.
Finalising the purchase
After agreeing on the terms, you will exchange contracts with the seller’s solicitor. This makes the deal legally binding.
At this stage, you will pay a deposit, usually around 10% of the purchase price. Completion typically occurs within a few weeks, during which the remaining funds are transferred, and the legal title is updated at the land registry.
