It can be difficult to navigate the complicated world of commercial conveyancing, especially if you are new to it. Understanding the nuances of commercial property conveyancing, whether you are an experienced investor or a first-time business owner, is essential to a successful transaction.
Whether you are buying or selling commercial property, creating a new lease or transferring an existing lease, our nationwide network of expert commercial conveyancing solicitors will carry out all the necessary legal work efficiently and in your best interests.
If you would like to discuss your commercial conveyancing needs with one of our commercial advisors, please fill the form below or call us on and our friendly team will be happy to help you!
What is commercial conveyancing?
Commercial conveyancing is the name given to the process used to transfer legal ownership or occupying (leasehold) of land, buildings or property used for business purposes.
It is similar to residential conveyancing because it involves transferring the legal title, but it is also different because it refers to specific business operations.
The process also takes longer to complete because the legal investigations are more extensive and complex, and consider the nature of the business and use of the commercial unit.
As with residential conveyancing, a solicitor or licensed conveyancer is the person who carries out the work required to transfer legal ownership.
Commercial property refers to the likes of retail, restaurants and bars, leisure, offices and warehouses, industrial sites and land for development.
Commercial property conveyancing is more complicated than residential conveyancing because many are occupied by tenants who lease the property.
Common types of commercial conveyancing transactions
Commercial property is divided into several different categories. These include the likes of:
- Retail, such as shops, malls and supermarkets
- Offices; leisure, including bars, restaurants and hotels
- Industrial, such as warehouses and industrial estates
- Land; mixed use land or any space that is not registered for residential use
The most common types of transactions are the following:
Purchase and sale
The most straightforward type of purchase and sale, which can include buying the business as well as the lease/freehold.
Leasehold Transactions
Most commercial conveyancing transactions involve lease agreements. These are properties where a tenant (lessee) leases some or all of the property or land from the owner (landlord or lessor) for a specific period of time.
A lease is a legal agreement, giving the commercial tenant exclusive right to occupy the property for the term of the lease. Commercial property conveyancing may include creating a new lease, negotiating new terms on a lease or transferring the lease from one person or business to another.
Development and planning
For property undergoing development, conveyancing can include permissions and environmental regulations.
Mortgages and refinancing
Conveyancing ensures that the legalities are in order when a business wants to refinance or commercial mortgage a property.
Landlord-Tenant Matters
Leasehold property can bring up a number of issues, such as requests for renewal of leases, licences for works or applications for changes of use, lease variations, lease assignment (sale to a third party), or proposals for subletting a part or the entirety of the property.
Difference between residential and commercial conveyancing
Commercial and residential conveyancing, while they may share some similarities can differ.
Commercial transactions can be more complicated due to the use of commercial property and its nature. These transactions may include complex lease agreements or environmental regulations.
Because of the extra legal checks and negotiation required, commercial conveyancing can take longer. It can also be more expensive due to the complexity and value of the commercial property.
Commercial conveyancing also involves different legal issues, such as compliance with commercial property laws and regulations.
Commercial conveyancing process for buyers
Commercial conveyancing for buyers will naturally start with finding a property that you want to make an offer on.
Once the buyer and the seller have agreed on a price, the conveyancing solicitors on either side will get to work on completing the sale.
The process includes the following key steps:
Instructing a commercial conveyancing solicitor
The first step is to hire a commercial conveyancing solicitor. They will take care of the legal issues, provide advice on the process and represent the interests of the buyer.
Due diligence
It involves researching the property. This includes HM Land Registry title searches, commercial property searches including local authority searches, environmental and planning searches. Early on in the process, it is important to identify any legal issues and restrictions that may affect the use of the property. Unregistered property is also something that can happen.
Negotiating and drafting contract
After due diligence, the buyer's lawyer will negotiate with the seller's solicitor the terms of the contract, including price, completion date and any special conditions.
Financing
The process of securing funding is essential. It may be necessary to apply for a commercial loan from a lender.
Exchange of contracts
After the terms have been agreed, a deposit will be paid and contracts exchanged. The deal then becomes legally binding. Both buyer and seller are now legally bound to each other in anticipation of completion.
Completion
The balance of the purchase is paid to the seller on the date of completion, and the buyer takes official ownership of the property.
The formal transfer of title to the land interest is not complete until all post-completion procedures have been completed successfully with HM Land Registry, and the buyer has been registered as the new owner of that property.
Post completion
The buyer must pay any stamp duty land tax and submit an SDLT to HMRC. They also need to register the property at HM Land Registry in their name.
Commercial conveyancing process for Sellers
Commercial conveyancing for sellers starts when the property owner decides to put the premises on the market.
The process is as follow:
Instructing a commercial conveyancing solicitor
Commercial conveyancing solicitors will handle the legalities and prepare the documents for sale, while representing the interests of the seller.
Prepare sale documents
The solicitor will prepare the title pack, draft contracts and any other documents necessary, such as answers to standard commercial queries (CPSE) and access to the Energy Performance Certificates (EPC) for the property.
Negotiations
The seller's solicitor will negotiate with thebuyer's solicitor to determine the terms of sale, and amend the contract as directed.
Answering enquiries
Any additional questions or requests from the buyer for more information must be answered by the seller.
Exchange of contracts
Contracts are exchanged once the terms have been agreed, and then become legally binding.
Completion
The seller must vacate their property on the date of completion, pay off any existing mortgages or charges, and then hand over the keys to the buyer.
Post-completion
The seller's solicitor will be responsible for the repayment of any outstanding loans and the transfer of money.
How long does the commercial conveyancing process take?
The length of the process for commercial conveyancing can be affected by many factors, which are unique to you. The following are some of the most important factors that influence the timeline for commercial conveyancing:
The complexity of commercial conveyancing transactions
Complex transactions such as those that involve large commercial properties, complex lease agreements or development sites, take longer.
Property types
The property's nature can also affect the timeline. Due diligence and legal checks often take longer for properties with unique features or restrictions on usage.
Chain of Transactions
Delays in one part of a transaction chain (where multiple transactions are linked and must be completed simultaneously) can cause the entire timeline to extend.
Legal and regulatory compliance
The time required to comply with all applicable laws and regulations can be extended. This includes planning permissions, environmental regulations and property repairs.
Finance issues
Timeliness can be affected by the time it takes to obtain financing through mortgages, or any other method.
In general, a commercial conveyancing transaction could take between 6 to 12 weeks. It is not unusual for complex transactions to take longer than this, and can even last several months.
To avoid unnecessary delays, it is important to keep in regular contact with your solicitor to be kept informed of the progress.
How much does commercial conveyancing costs?
Commercial conveyancing fees will vary depending on the cost of the property involved and the complexity of the transaction; for example, whether a property is leasehold or freehold.
Legal fees - the cost of paying for commercial conveyancing solicitors - are the biggest element of the overall cost of a commercial conveyancing transaction.
At Homeward Legal, we offer a no-obligation quote from trusted and experienced commercial conveyancing experts that includes fixed legal fees. That ensures the quote you receive for legal fees is exactly what you pay, with no hidden costs.
Based on the information you give us, we will also outline the expected disbursements, charges and fees that must be paid to your solicitor on top of their legal services.
These include but are not limited to:
- Land Registry fees
- Telegraphic Transfer fee (for banks)
- Property searches
- ID and bankruptcy search
- Stamp Duty Land Tax
- VAT
- Any 3rd party checks required on the business
Each conveyancing transaction is unique. As your transaction proceeds, there may be other non-standard fees incurred to ensure the sale or purchase goes through. However, your solicitor will keep you fully informed of any additional costs that arise.
There's a lot involved in ensuring commercial property conveyancing is completed successfully. Talk directly to our experienced team on to learn how you can stay fully informed and in control of your transaction.
You can also learn more about conveyancing fees in our guide
Do I need to hire a solicitor for commercial conveyancing services?
Unless you are buying with a commercial mortgage, it is not mandatory to hire a commercial conveyancing solicitor, but the benefits of having an experienced and competent legal professional on your side are numerous. A property asset is often a substantial investment, and it's important to have the right information before committing or selling.
Risk management is a key benefit to having a commercial conveyancing solicitor on board. Conveyancing mistakes can be expensive, legal troublesome, delay transactions and have an impact on future transactions.
The role of a solicitor includes identifying risks and offering solutions to protect your interests. A commercial conveyancing solicitor who is appropriately qualified can negotiate and draft contracts that are aligned with your goals, but also protect your rights.
A solicitor can speed up the commercial conveyancing process and save time. They take care of the administrative and legal tasks, which reduces your workload and speeds up the process.
A solicitor's professional advice and support can also be comforting, particularly in cases where there are high stakes or economic investments. This advice is especially valuable when navigating the complex and high-pressure environment of commercial property deals.
Why choose Homeward Legal for your commercial conveyancing needs?
Why choose Homeward Legal for your commercial conveyancing needs?
Simple & Straightforward
We won't confuse you with lots of technical jargon. Just plain, simple English that makes the conveyancing process easy to understand.
Fixed Legal Fees
When you get residential conveyancing quotes from us, the fixed legal price we quote you is the price you'll pay, with no hidden costs.
No-Completion, No Fee
Don't worry if your move falls through. Our No-Completion, No Fee means there will be no fixed legal fees for you to pay.
Trusted
We pride ourselves on our customer service and we feel that hard work has been rewarded by the hundreds of glowing reviews we've received on Trustpilot.
Local
Whether you deal with one of our in-house team or a member of our panel of specialists, we'll find you a solicitor with excellent local knowledge of your area.
Regulated
All of the conveyancing professionals that we deal with are regulated under the Solicitors Regulation Authority or the Council for Licensed Conveyancers.
Available
Any questions? Our team is available to help until 6pm on weekdays, and 4pm on Saturdays.
Get in touch with us for your commercial conveyancing needs
Whether you're looking to buy or sell your property, get in touch with the team today about our commercial conveyancing services by filling the form below.
Alternatively, you can always give us a ring on or request a callback and we'll be happy to speak to you.
Frequently asked questions...
At Homeward Legal, we work with expert property law firms across England and Wales who have vast experience in commercial property conveyancing. Our partner firms can help with sale or purchase conveyancing, drawing up new leases and help to transfer existing leases. They will offer expert legal advice and support to all commercial clients in every transaction.
Get a no-obligation quote online now or call our team on to find out more about what we can offer in commercial property conveyancing.Similar to residential freehold, a freehold commercial property means the title (ownership) of the property and land belongs to the freeholder (owner). Leasehold is an interest in the land or property created by a lease. The leaseholder is a tenant who pays rent and has the right to occupy the land or property for a fixed period. Many commercial properties are occupied by tenants with a lease, meaning anyone buying or selling that property must take account of the leaseholders' rights.
On top of the legal costs of conveyancing, there are a number of other commercial conveyancing fees to consider when purchasing business-related property. Anyone buying commercial property can also expect to pay Stamp Duty Land Tax on the transaction. There might also be fees for any building survey you might instruct. Buyers can also expect to pay for property searches, bankruptcy search fees, Telegraphic Transfer fees (bank) and Land Registry fees. The property searches might include a local authority search, drainage and water, environmental, HS2 and mining. Commercial property searches are more expensive than their residential equivalent. When you get a no-obligation quote from Homeward Legal for commercial conveyancing, we will detail the cost of all searches and additional charges that you might expect to pay, giving you full information on the expected total cost of your transaction.
Yes, you should always take professional advice on leases. Leases are a complicated area of the law, and any change to the condition of one could have expensive consequences if not done properly. Specialist commercial conveyancing solicitors can help negotiate new terms correctly, ensuring your interests and those of the lessees are protected. You can get a no-obligation quote from Homeward Legal for creating new leases and transferring a lease, ensuring you have an expert professional by your side.
Instructing a building survey when buying commercial property will give you peace of mind that the property is worth what you are paying. A survey carried out by a RICS chartered surveyor will give you an expert opinion on the condition of a property and identify any structural or other issues. Talk to your commercial conveyancing solicitor about your building survey options.
Depending on the value of the commercial property or land you are buying, you may be liable for Stamp Duty Land Tax (SDLT). This is a land levy payable to HMRC on completion of a purchase transaction. SDLT is paid on a sliding scale depending on the value of the property. For example, all transactions up to a value of £150,000 in England are exempt from SDLT. For transactions between £150,001 and £250,000, purchasers will pay 2 percent of the purchase price in SDLT. Your conveyancing solicitor must file a return for SDLT with HMRC within 14 days of completion. You can find out more about SDLT rates here.
In the commercial property market, purchasing a commercial unit with tenants in place is referred to as “in situ”. Where the property is known to be leasehold, your conveyancing solicitor will receive details of any tenancies from the seller's solicitors. The tenants' lease agreement with the previous owner remains in place until a new agreement is drawn up with the new owner. Where the property is freehold, your solicitor should check at the Land Registry for any registerable leases. These are leases that run for more than seven years. Short leases that run for less than seven years are not registerable and will not be included on the Land Registry charges register.
Anyone selling commercial property will be asked to complete a set of Commercial Property Standard Enquiries (CPSEs), which are a standard part of pre-contract conveyancing. These comprehensive enquiries were introduced in 2002 to help speed up commercial conveyancing. The information contained in the CPSEs will allow the buyer to make an informed decision about the property's value. The seller does not have to complete the CPSEs, but where they are completed, the seller has a legal duty to answer truthfully and accurately in replies and not misrepresent the property. The seller must also disclose any latent defects affecting the property.
