Commercial Property

A **Freehold** property means you own the building and the land it sits on outright, indefinitely. A **Leasehold** means you only own the right to occupy and use the property for a fixed period (the term of the lease), and must adhere to the terms set by the landlord (the freeholder).

You should instruct us **at the earliest stage possible**, ideally before you sign the initial 'Heads of Terms' or offer document. Early legal advice allows us to flag major issues and begin necessary **due diligence** and searches, which significantly speeds up the entire transaction process.

Due Diligence is the thorough legal investigation we conduct before you commit to buying. This includes reviewing **title deeds**, carrying out **property searches** (local authority, environmental), reviewing existing leases, and verifying all planning permissions and compliance certificates.

SDLT is a tax payable by the buyer on the purchase of land or property over a certain price threshold. The rates for commercial property differ from residential rates and are based on the purchase price. We will accurately calculate your liability and ensure timely payment to the revenue authority.

Key risks include the extent of your repair obligations (**Full Repairing and Insuring or FRI leases**), the frequency and mechanism of **rent review**, overly restrictive **use clauses**, and the terms under which the lease can be assigned or sublet. Negotiation is vital to mitigate these liabilities.

An FRI lease places the entire burden of repair and insurance costs onto the tenant, even for structural defects or wear and tear that existed before the lease began. This can represent a significant, often unexpected, financial liability, which is why we negotiate the exact scope of this clause.

A Break Clause grants either the tenant or the landlord (or both) the right to terminate the lease early on a specified date(s), provided strict conditions (like paying rent up to date) are met. Missing a break clause deadline or condition can result in the lease continuing for its full term.

You may need two permissions: first, from the **landlord** (if you are a tenant) as required by the lease; and second, from the **local planning authority** to change the official Planning Use Class. Failure to get both can result in legal action or fines.

A Rent Review clause specifies when and how the rent can be increased during the term of the lease (typically every 3 or 5 years). Common methods include **Open Market Rent (OMR)**, **Retail Price Index (RPI)**, or a fixed increase. We negotiate the review method to protect your business budget.

A 'licence to alter' is formal, written permission from the landlord required before you can make any structural or significant non-structural changes to the property. Doing work without this licence is a breach of the lease and can lead to forfeiture (loss of the lease).

Commercial conveyancing is significantly more complex, involving deeper due diligence, VAT considerations, specialized searches, and extensive negotiation on the legal documentation (contracts and leases). The process is generally less standardized and more risk-intensive than residential transactions.

Covenants are binding promises or restrictions affecting the property. They can be positive (requiring you to do something, like maintain a fence) or restrictive (preventing you from doing something, like using the property for certain trades). We investigate all existing covenants to ensure they don't impede your business plan.

While we prioritize speed, complex commercial transactions rarely complete in less than 8-12 weeks due to necessary legal steps like searches, due diligence, and finance approval. The best way to achieve a fast completion is to instruct us early and respond to requests promptly.

If you purchase a property with existing tenants, you become the new landlord and are legally bound by the terms of the existing leases. We review all lease documentation to ensure you understand your rights, obligations, and the tenants' security of tenure before you commit.

Relocation involves complex overlapping legal issues: negotiating the **disposal of your current site** (lease assignment or sale) while simultaneously managing the **acquisition of the new site** (purchase or new lease) and ensuring you meet all legal notice periods. Our coordinated approach minimizes risk and avoids expensive gaps in operation.