Commercial property FAQs

What are the main costs involved in buying or leasing commercial property?

• The costs involved would typically include professional fees for your lawyer and surveyor. There may be fees such as the costs of pre contract and pre completion searches and Land Registry fees.
• The price of the premises (when purchasing) or any initial lease premium (if renting and any stamp duty land tax (if applicable).
• Rent and service charges (if renting), Insurance, utilities, Non-domestic rates (business rates), Maintenance and repair costs.

What do I need to do if I want to carry out alterations to my business premises or change what I use them for?
Regardless of whether you lease the property or own it, any significant alteration is likely to require building control approval. If you lease the property you will likely need the landlords consent.

If you want to change the use of premises from one ‘use class’ to you may require planning permission.

Who is responsible for repairing and maintaining our leasehold property?
This will depend upon the wording of the lease. To avoid this you should take legal advice as to the wording of the lease and may be advised to have a ‘Schedule of Condition’ prepared or even photographs taken to record the condition of the property on the day the lease was granted.

The Selling Agents Particulars state that the property has ‘A1’ use: what does this mean?
How the property is to be used – authorised under planning legislation. Where there is to be a change of use, planning permission must be obtained. However an application for planning permission does not need to be submitted where the change is within the same category as is currently applicable to the premises.

I am transferring my leasehold premises to the buyer of my business. I have been told that I will have to act as guarantor to the buyer. This seems totally unreasonable – is it correct?
If the Landlord’s consent to the transfer of the lease is required it is likely that the Landlord will be able to insist that you enter into an ‘Authorised Guarantee Agreement’. This is an agreement imposing a condition that you will pay the rent and perform the covenants if the incoming tenant fails to do so.

The Lease states that the Tenant is to repair the premises but surely the Landlord cannot insist the Tenant is responsible for items of disrepair which were present at the date of the Lease?
This will depend upon the wording of the lease. To avoid this you should take legal advice as to the wording of the lease and may be advised to have a ‘Schedule of Condition’ prepared or even photographs taken to record the condition of the property on the day the lease was granted.