What is commercial conveyancing?
Whether you are buying or selling commercial property, creating a new lease or transferring an existing lease, our nationwide network of expert law firms will carry out all the necessary legal work efficiently and in your best interests.
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 business operations.
The process also takes longer to complete because the legal investigations are more extensive and complex.
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.
The commercial conveyancing process
The commercial conveyancing process follows a broadly similar path to that of residential conveyancing because each has the same goal: to transfer the legal title from one person or business to another.
However, commercial conveyancing is more complex and time-consuming because of the legalities involved, often concerning leases and tenancies that have to be factored in.
This means it's imperative that anyone buying or selling commercial property should engage a specialist commercial conveyancing solicitor with experience in commercial conveyancing.
A commercial transaction will also take longer than a residential one because of complexities such as leaseholders and businesses in residency being sold as a “going concern”.
As a rule of thumb, expect that the larger and more expensive the property, the more complex and lengthier the commercial conveyancing process.
You can use our online calculator to get an instant quote that will give you an idea of your fixed legal fee** conveyancing costs. You can also talk to Homeward Legal on . We're open seven days a week.
Commercial conveyancing 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.
On the buyer's side, the solicitor will:
- Investigate the title (who legally owns the property)
- Instruct commercial property searches that build a picture of the property and its surrounds
- Negotiate the contract with the seller's solicitor
- Make any enquiries arising from the CPSEs
- Ensure all finance is in place and deal with any lender involved in the transaction
- Exchange contracts with the seller's solicitor, transfer the funds on completion day and arrange for keys to be collected
- Pay any outstanding Stamp Duty Land Tax to HMRC within 14 days
- Register the property's new owner with the Land Registry
Interested in buying commercial properties? Talk to Homeward Legal now on to get the best conveyancing deal for you.
Commercial conveyancing for sellers
Commercial conveyancing for sellers starts when the property owner decides to put the premises on the market.
The seller's solicitor will:
- Ask the seller to complete pre-contract forms known as Commercial Property Standard Enquiries (CPSEs)
- Draw up the sale contract and let the buyer's conveyancing solicitor know what is included in the sale, including fixtures and fittings
- Negotiate the price and completion date with the buyer's solicitor
- Approve the Transfer Deed from the buyer's solicitor
- Agree on the exchange of contracts and arrange for keys to be collected
- Pay off any outstanding mortgage once the sale is complete, deduce their fees and transfer the remaining funds to the seller
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.
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.
Fees for commercial conveyancing
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
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.
Why choose Homeward Legal for your commercial conveyancing needs?
Why choose Homeward Legal for your commercial conveyancing needs?
We pride ourselves on not confusing you with lots of legal jargon. We understand the buying and selling process is complex enough without the terminology making it worse. Everything will be delivered in pain, simple English that makes the 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. At Homeward Legal, we don't believe in hiding additional fees in the small print.
No-Completion No Fee†
Don't worry if your move falls through. Our no-completion no fee means there will be no legal fees for you to pay.
Trusted
Customer service is something we pride ourselves on. Don't take our word for it though, our hard work has been rewarded by the hundreds of glowing reviews we've received on Trustpilot.
Convenience
The convenience of an online conveyancing service with no requirement to visit a solicitor's office or even use one in your area. Most of the paperwork can be done online or by phone, making life easier and often speeding up the process as a result.
Regulated
All of the residential conveyancing solicitors we deal with are regulated by the appropriate governing bodies - whether this is the Solicitors Regulation Authority or the Council for Licensed Conveyancers.
Open 7 days a week
If you need the team for help, advice or to ask questions about your ongoing matter, we can be contacted seven days a week until as late as 8pm on most weekdays, and 4pm at weekends.
Frequently asked questions...
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.
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.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.
Your Fixed Legal Fee** quote from Homeward Legal ensures that you pay no more than we have quoted you for and is based on the information you’ve provided to us being true and accurate.
There are specific circumstances on a minority of transactions that may require additional charges that could not be foreseen at the outset.
A list of those charges and explanations can be found here with details of the potential cost. These will only be charged following discussion with your conveyancer with a clear explanation of what they are for.
No Completion No Fee† is our promise that in the unfortunate event that your property transaction falls-through you will not be liable for any of the conveyancer’s fixed legal fees for the work completed.
To secure this benefit a fee, already included in your quote, is taken upon on deciding to go ahead with your transaction.
Should your transaction fall through, for whatever reason, we can hold this amount on account for your next transaction or provide a refund.
Disbursements* are costs or expenses that may be incurred as part of your conveyancing transaction which are paid to a third party by your conveyancer, on your behalf.
They will vary depending on your requirements and can include Land Registry fees and banking charges. We've quoted for Disbursements based on the information you've provided, and they will be charged with no additional fees or surcharges.
Occasionally additional disbursements are required to progress a transaction and will only be charged following a discussion with your conveyancer.
