Guide to selling a commercial property (either selling an existing lease or granting a brand new lease)
The process involved with selling an existing lease (known as assigning a lease) or granting a brand new lease of a commercial property are very similar - this guide will take you through all the steps involved.
Throughout the guide you will see red text - just Hover your mouse over the text to see a more detailed description of what it means
We will obtain evidence of the title of the property, we can obtain up to date information from the Land Registry (if the property is registered) but we would also ask that you provide us with your title deeds; If you have a mortgage then the title deeds may be held by your bank or building society.
From the documentation we will then draft up the contract (or lease) detailing the terms agreed for the sale/lease.
We will need you to provide us with replies to CPSE enquiries, these are a standard set of questions which will be raised by the purchaser/tenant, but we will guide you through these and complete them on your behalf. We will also need to obtain from you all the relevant documentation such as planning consents/fire safety certificates etc.
We will send all of the documentation onto the buyer's solicitor. If they raise any questions we will ensure that these are dealt with swiftly.
(Applicable on a sale only not on grant of a new lease). Once the parties are ready, contracts will be exchanged. This means that both the seller and buyer have signed the contracts and these forms are swapped. On exchange the agreement becomes binding and neither party can withdraw from the transaction. The buyer will also provide a deposit usually equal to 10% of the purchase price. A date will then be set for completion.
Sale transactions - On the day of completion we receive the balance of the sale price and in return we will hand over the title deeds to the property. We will use the monies to repay any mortgage that was held against the property and to pay the fees in connection with the sale such as the estate agents and our fees. The remaining money will then be sent onto you.
Grant of new Lease transactions - For a lease when the terms of the lease have been agreed and both parties have signed the lease, the lease will dated with an agreement date. This will be the date that both parties have confirmed that they are happy with the full terms of the lease, it does not have to be the date when the lease is to start (the start date could actually have already passed or be a date in the future). If there are any payments due under the lease we can ensure that the monies are provided by the tenant ready for completion.
If you would like further advice or would like to speak to us about any commercial property matter Click here to contact Christie Limb.
We have offices in Mansfield and Sutton-in-Ashfield Nottinghamshire but can act for you wherever you are located within England & Wales as we offer all our client instant online access to their files via our 'real time' 24/7 Case Tracker.