Preparing commercial property for sale
You may be looking to sell your commercial premises in the near future. If so, there are steps that your solicitor could take now to compile a comprehensive sale pack and to ensure that the sale proceeds quickly without any unexpected issues.
3. CPSEs – prepare replies to the Commercial Property Standard Enquiries. You may need to obtain an Energy Performance Certificate, Asbestos Survey and a Fire Risk Assessment.
4. Planning Documents – identify whether the property has consent for its current use and for any works that have been carried out.
5. Leases – review any leases and obtain a rent payment history. You should also discuss with your valuer whether you could enhance the value of the property by:
- dealing with any outstanding rent reviews;
- agreeing the renewal of a lease; and
- re-gearing a lease (a tenant may be willing to give up a break option if the landlord agrees to a lower rent).
6. VAT Position – identify whether the property is VAT elected. Your solicitor will advise you whether VAT should be charged on the sale price, or whether it possible to treat the transaction as a transfer of a going concern.
7. Draft Documents – the sale contract and the transfer deed can be prepared now. Your solicitor will advise you about rent apportionments and securing the benefit of any outstanding rent reviews.