Purchase of commercial property

Purchasing a commecial premises can be a big decision for an organisation. Whether the first property, or adding to an existing portfolio, each purchase requires consideration and legal support throughout.

The purchase of commercial premises involves a number of particular issues:

• Does the property have planning consent for the use intended by the buyer?

• Are there any VAT implications on the purchase?

• Are the properties freehold or leasehold - if freehold, is the property to be vacated or subject to a lease?

• If subject to a lease, are there satisfactory covenants for the purchaser and the purchaser's bank or mortgage lender?

• Is the purchase to proceed in the name of a limited company, a partnership, an individual, trustees of a pension company?

• If the property is leasehold, are there any service charge implications; are all rights of access available; does the buyer intend to instruct a valuer to carry out a detailed inspection of the property (in addition to any mortgage valuation proposed); are there any environmental issues relevant to the property (e.g. flooding, contamination, proximity to landfill sites, presence of asbestos etc)?