Commercial Property

Buying commercial property

Whatever type of commercial property you wish to buy, freehold or leasehold, we can help. We will give clear, honest and well-informed advice to guide you every step of the way.  We have a great track record in acting on a diverse range of commercial property acquisitions, from complex, high-value, multi-let schemes, to owner-managed businesses looking to relocate to new premises to suit their business needs.  As well as our strategic expertise, we can handle all the necessary practical and procedural aspects for you.

Typically, this process will include:

• Pre-contract negotiations and enquiries: this covers investigation of title, pre-contract searches and Commercial Property Standard Enquiries (CPSEs).
• Document negotiation and review: this covers the purchase and sale contract, the transfer, the lease (if it is a leasehold property), stamp duty land tax and legal charges.
• Exchanging contracts
• Arranging completion
• Dealing with post-completion obligations, including preparation of stamp duty land tax returns to submit to HM Revenue & Customs, and registering the transaction at HM Land Registry.

Selling commercial property

If you are selling commercial property of any kind, we can provide all the legal expertise and practical support you need. We have the resources and know-how to handle every aspect of the transaction on your behalf, ensuring you achieve the best possible outcome.  

Typically, this process will include:

• Preparing a title and contract pack and sending them to your buyer or tenant.
• Preparing replies to Commercial Property Standard Enquiries (CPSEs) on your behalf, together with replies to any additional enquiries raised by your buyer or tenant.
• Working with you to collate regulatory and other documents, including asbestos surveys and Energy Performance Certificates, if applicable.
• Negotiating all documentation, including the purchase and sale contract, the transfer, and (where applicable) the lease.
• Managing the exchange of contracts.
• Arranging completion.
• Liaising with any lender to arrange the repayment of any outstanding bank security.

Commercial leases

When you are buying a leasehold property, understanding the terms of the lease is critical. This can determine whether the deal is practical and beneficial to your business. At Higgs, we have extensive experience of commercial leases and can provide an exhaustive lease review and drafting service. Where necessary, we will also guide you through all aspects of alterations, variations and lease assignment or underletting.

If you are a tenant of a commercial property, we can advise you on applications for landlords’ consent to allow you to carry out works, or to sell or underlet the property; our property dispute team also advise on lease renewal negotiations, surrenders, wayleaves and dilapidations.

Overage and clawback

When you sell commercial land, it is possible to include a clause that means you benefit from a future uplift in its value. For example, an additional payment may be triggered if and when the buyer obtains planning permission.

Known as ‘overage’ or ‘clawback’, such payments are in addition to the agreed purchase price.

Whether you are buying or selling, we can advise you about overage and clawback agreements. We will analyse if such a clause is right for you or your business, according to your specific circumstances. As well as strategic advice, we can guide you through the practicalities and negotiations with the other party.  

Option agreements

An option agreement is a contract, normally between a landowner and a property developer, under which the developer has the first option to purchase land from the owner, with a defined time frame. The option is generally triggered by a specific event, such as the grant of planning permission for the land.

Option agreements present an opportunity, but not an obligation, for one party to buy under agreed circumstances. There are advantages and drawbacks to both the buyer and seller, so it is important to take advice before proceeding. We can offer a clear and balanced view, based on your specific circumstances. Furthermore, should you wish to go ahead, we can provide all the necessary practical assistance and support in negotiating with other parties.

Asset management

If you are an investor landlord, we can assist you with the management of your commercial property portfolio. Such work would include dealing with your lease renewals, working alongside our property disputes team to serve renewal notices under the Landlord and Tenant Act 1954, assisting you with documenting rent reviews, and advising you on any applications you receive from your tenants for consent to alter, or to sell or underlet their leases.