Property Acquisitions

Standard pre-contract searches usually include the Local Land Charges register (LLC1), the local authority enquiries (CON29 and CON29O), a drainage and water search, a desktop environmental search and a chancel check. Depending on the site, we may also recommend mining, flood, planning, highways or utilities searches. The results inform the replies to enquiries and any price renegotiation before exchange.

Due diligence is the structured review of title, planning, occupational leases, service charge accounts, environmental risk, statutory compliance and contractual obligations attaching to the property. We work through the seller’s replies to the Commercial Property Standard Enquiries (CPSE) and report on any issues that affect value, use or future disposal — so you can make an informed decision before committing to exchange.

For non-residential or mixed-use freehold purchases in England and Northern Ireland, SDLT is currently charged in slices: 0% up to £150,000, 2% on the slice from £150,001 to £250,000, and 5% on anything above £250,000. New commercial leases are also charged on the net present value of the rent over the term. SDLT must be filed and paid within 14 days of completion, and reliefs may be available for certain transactions.

The sale or letting of commercial property is generally VAT-exempt by default, but a seller or landlord can elect to opt to tax the property — making the price or rent VAT-able at the standard rate. An option to tax can recover input VAT for the seller, but it adds 20% to your purchase price and to your SDLT calculation, and can be a real obstacle when later reselling to an exempt buyer. We confirm the VAT status as one of the first questions on every commercial deal.

Exchange of contracts is the point at which the deal becomes legally binding — the deposit is paid, the price and completion date are locked in, and neither party can walk away without serious consequences. Completion is the day the balance of the price is paid, keys are released and legal ownership transfers. The gap between the two is typically used to organise finance drawdown, insurance and any pre-completion conditions.

Straightforward freehold purchases of vacant commercial premises can complete in around six to eight weeks from instruction. Investment purchases with occupational tenants, new-build sites, complex title issues or development funding usually take three to four months or longer. Lender requirements, search turnaround times and replies to enquiries are the most common drivers of timing.