Now the Summer is over, and Autumn is in full swing, the commercial property market starts to warm up again for companies looking to move or grow or for investors to enter the marketplace.
If you own a commercial building and are thinking of putting it on the market, there are several things you can do or start to put in place now in order to reduce any delays, identify any issues quickly and help the process to run smoothly and efficiently.
Our Commercial Property Partner, Rupeena Shoker, shares her landlord’s checklist and some ideas for getting a commercial premises ready for the sale boards to go up.
Commercial Property Sale Checklist
There is a lot of due diligence when buying or selling commercial property, so being on top of the paperwork that will be requested can help speed up the process of the sale and stop any delays along the way.
- Ensure that you have the latest copies of reports, such as an Asbestos report (applicable to any property built before 1999) and a Fire Risk Assessment.
- If any building work has been carried out on the premises, make sure you have the planning permission application, and any building regulation certificates.
- Obtain an Energy Performance Certificate (EPC)
- Obtain title deeds and any documents relating to your purchase of the building
- Provide copies of occupational leases, local authority leases, contracts etc.
- Ensure you have accurate plans of the land and building/s
- Details of any restrictive covenants, use classes, local planning applications etc.
- Ensure that the building is in good repair, make any needed improvements
Other Useful Information to Gather
Consider what information the selling agent will need from you and what potential buyers will want to know about the property. Think about what will help the buyer be well informed, but also, more eager to buy.
You can start to gather this information together for the sales pack ahead of time.
Consider: measurements, floorplans, history of the property and past occupants, photographs, even testimonials from previous tenants or occupiers. Details of the local area, distances from amenities etc.
Preparing for Viewings
Just as you would when selling your home, consider how you can present the building in the best possible way for potential buyers.
Consider tidying up the outside of the premises, keeping grass trimmed, weeds pulled etc. Make sure bins are emptied and that the premises is clear of any clutter. Depending on the building type and expected use, it might be useful to have the building staged with furniture so that viewers can see its potential.
If the building is standing empty, ensure that you regularly visit to maintain the property whilst you await its sale.
Costs Involved in Selling Commercial Property
When budgeting, it would be sensible to obtain estimates ahead of time to avoid any surprises. Your costs are likely to include: Commercial estate agent fees, solicitors fees, removal / repair costs, capital gains tax and mortgage redemption/arrangement fees if the property is mortgaged.
Instructing Third Parties
To get ahead, consider who you will be instructing as the professionals dealing with your sale. Liaise with your accountant, insurance broker, surveyor, commercial estate agent and, of course, a Solicitor.
Your Solicitor will deal with the legal aspects of selling the property and transferring the ownership. They will also be able to handle any contracts and agreements, answer technical questions, deal with any issues that arise and handle the transfer of money.
For more information on commercial property transactions or for a no-obligation estimate for your sale, please get in touch with our specialist commercial property department at Lamb Brooks.
Call us on 01256 844888, email enquiries@lambbrooks.com or speak to our online chat assistant on our website (who is a real person). We hope to help you move forward with your next project