Buying and selling commercial property
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Contact our teamThe process of buying or selling commercial property can be complex and requires careful management of legal and financial considerations.
From acquiring new business premises to selling property as part of a wider investment strategy, each transaction is unique and requires expert guidance to ensure everything runs smoothly.
With commercial property, the stakes are often high. Lease agreements, planning permissions, environmental issues, and financing arrangements all need to be handled with care. Having the right legal support not only protects your interests but ensures that you’re fully prepared for each stage of the transaction.
Do you need a solicitor to sell a commercial property?
Having a commercial property solicitor on your side will help ensure a smooth sale of your commercial property. They will manage all the legal documentation and address any legal issues or disputes that may arise during the process, providing expert guidance throughout.
Richard Hughes
Partner | Commercial property, Real estate, Real estate finance
Client case study – Major Group
“We’ve worked with Moore Barlow over several years, they’ve been very attentive to our needs. One of the things we appreciate the most is speed – they’ve been great at that”
Aman Singh, Major Group
How we can help
At Moore Barlow, our commercial property team offers tailored legal support to guide you through every stage of your transaction. We provide clear advice and proactive management of the process, ensuring that all legal aspects are handled efficiently.
Whether you’re buying or selling we help with:
- Thorough checks on property titles, leases, and planning permissions to protect your interests.
- Ensuring fair and transparent terms.
- Handling the legal and financial steps necessary to finalise the transaction smoothly.
Our goal is to make the process as straightforward as possible, protecting your investment while keeping your business needs at the forefront.
Key steps in buying commercial property
Purchasing commercial property involves more than just selecting the right location; it requires thorough due diligence and careful legal oversight to minimise risk. The process starts with due diligence, which includes investigating the property’s legal title, planning permissions, restrictions, and any environmental concerns to ensure clarity on what you are buying and its obligations.
Next is negotiating the purchase terms, which involves finalising the purchase price and agreeing on any conditions related to the property’s current state or future use. After that, where necessary, securing financing is key—whether through a commercial mortgage or alternative methods, aligning the financial terms with the purchase is critical.
Finally, exchange and completion seal the transaction. After contracts are exchanged, the deal becomes legally binding. On completion, funds are transferred, and ownership of the property is officially transferred to the buyer, concluding the process.
Meet our real estate finance experts
Richard Hughes
Partner | Commercial property, Real estate, Real estate finance
Jo Farr
Partner | Commercial property, Real estate, Land development, Real estate finance
Susannah Marsh
Partner | Financial services litigation, Real estate finance
Sam Ho
Senior associate | Commercial property, Real estate, Real estate finance
Nellie van der Lande
Senior associate | Commercial property, Real estate finance, Rural services
Callum Leary
Senior associate | Commercial property, Real estate, Real estate finance
Sharon Mays
Senior associate | Commercial property, Real estate, Land development, Real estate finance
Key steps in selling commercial property
Selling commercial property begins with preparing the property for sale, ensuring that all legal documents—such as title deeds, leases, and planning permissions—are in order. This preparation helps avoid delays later on.
Once a buyer is found, the next stage is negotiating with the buyer. This includes agreeing on the sale price and any conditions related to the property transfer. Expert legal guidance helps protect your interests during these discussions.
Your solicitor will then manage the legal process, drafting the sale contract and responding to the buyer’s due diligence enquiries. Once all conditions are met, the sale is completed, with documents signed and ownership transferred to the buyer, finalising the transaction.
Key considerations for buyers and sellers
When dealing with commercial property, both parties must consider lease agreements. For tenanted properties, the terms of the lease can impact the property’s value and future use. Planning and development is also crucial buyers must ensure that their intended use complies with existing planning permissions, while sellers must confirm past developments are correctly approved.
Tax implications, including VAT and stamp duty land tax (SDLT), are another critical factor, and both parties should seek advice to avoid unexpected costs. Lastly, environmental factors should not be overlooked. Buyers should conduct environmental assessments, while sellers must disclose any known issues, ensuring the transaction proceeds without hidden complications.
Contact us
Commercial property transactions require expert legal support to ensure everything goes according to plan. At Moore Barlow, our experienced commercial property solicitors are here to guide you through the entire process, ensuring your interests are protected at every stage. We provide clear, practical advice tailored to your specific needs, ensuring that your transaction is handled efficiently and with the utmost care.
Get in touch with Moore Barlow today to discuss how we can assist with your commercial property transaction. We’re here to help you navigate the complexities of buying or selling commercial property, making sure you’re fully supported from start to finish.
Contact our commercial property team
Frequently asked questions – Buying and selling commercial property
How much tax do I pay if I sell my commercial property?
When selling a commercial property, you may need to pay Capital Gains Tax (CGT) on the profit made from the sale. For individuals, the current CGT rates are 10% for basic rate taxpayers and 20% for higher or additional rate taxpayers. If the property is owned by a company, Corporation Tax applies to the profit at the current rate of 25%.
Additionally, other factors such as allowances, reliefs (e.g., Entrepreneurs’ Relief), and the property’s ownership structure may affect the final tax payable. It’s important to consult a tax advisor for accurate calculations based on your specific situation.
What are the tax implications of buying a commercial property?
When buying a commercial property, several tax implications may apply:
- Stamp Duty Land Tax (SDLT): In England and Northern Ireland, SDLT is payable on commercial property purchases over £150,000. The rate depends on the property’s price, starting at 2% and rising to 5% for amounts above £250,000.
- VAT: Some commercial properties may be subject to VAT at 20%, particularly if the seller has opted to tax the property.
- Capital Allowances: You may be able to claim capital allowances on qualifying fixtures and fittings within the property, reducing taxable profits.
- Annual Tax on Enveloped Dwellings (ATED): If a commercial property is used as a dwelling and owned by a company, ATED may apply, although this is rare for purely commercial properties.
It’s important to consult an advisor to fully understand the specific tax liabilities and any potential reliefs available.
What is involved in selling a commercial property?
Selling a commercial property involves several key steps:
- Valuation: Obtaining a professional valuation to determine the market value of the property.
- Marketing: Listing the property for sale through an agent or privately, targeting potential buyers.
- Negotiation: Engaging in negotiations with interested buyers to agree on the sale price and terms.
- Instructing a solicitor: Appointing a solicitor to handle the legal aspects, such as drafting the contract and conducting searches.
- Due diligence: The buyer conducts property searches, investigates title deeds, and reviews any existing leases or agreements.
- Exchanging contracts: Once both parties agree on the terms, contracts are exchanged, making the sale legally binding.
- Completion: The buyer pays the agreed sale price, and ownership is transferred. The buyer’s solicitor will also manage final paperwork, including registering the new ownership at the Land Registry and arranging payment of Stamp Duty Land Tax.
This process ensures the sale is legally compliant and protects the interests of both the seller and buyer.
How long does it take to complete the sale of commercial property?
The sale of a commercial property typically takes between 6 to 12 weeks to complete, depending on factors such as the complexity of the transaction, the efficiency of negotiations, and the results of due diligence checks, including searches and surveys. Delays may occur if legal issues arise or if the buyer requires extended time to arrange financing. However, straightforward transactions can sometimes be completed more quickly, while more complex deals may take longer.
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