If you are buying or selling a commercial property, there are some differences between conveyancing a house and commercial property. And so are the basic commercial property solicitor fees. Though the basics of the commercial conveyancing are similar to the domestic one, there is a notable distinction when it comes to the needed forms: CPSE Enquiries (Commercial property standard enquiries), related to general and particular situations of the building, details on the grant of the lease or the commercial tenancy. At the same time, commercial conveyancing has to do with ancillary issues, such as VAT, planning or the Capital Gains Tax (CGT). The CGT must be paid when you sell a buy-to-let property, business premises, land or inherited property, that is not your home (residential conveyancing follows other rules).
The CGT can reduce or delay its amount if you are a property developer (your business is to buy and sell properties). If you are a sole trader or partner, you pay an income tax, if you are a limited company, you pay a corporation tax.
Also, we recommend you to approach a conveyancing solicitor or a solicitor to deal with the commercial conveyancing. Whilst the residential conveyancing may be done with a licensed conveyancer, a commercial property requires profound legal knowledge and a larger expertise and experience.
Commercial property solicitor fees
Best thing to do is to find a solicitor who charges a fixed fee and not one based on a percentage of the commercial property’s value. Regardless if you start a new business, or you’re looking for a second branch, the conveyancing process costs more, due to all the other implications, such as a business being carried on in the property you are buying or involving a lease.
For example, as an individual planning to buy a whole commercial property (shops, office buildings, factory units or blocks of flats) with a mortgage and an approx.value of £125,000, registered and in commonhold, with land included (up to 2 hectares) and a new lease, the conveyancing fees start from £2300, including VAT and all disbursements.
Slightly more expensive than the residential conveyancing, the commercial property solicitor fees tends to be higher, due to its nature of risks involved. You can sometimes do your own domestic conveyancing, but when it comes to commercial properties, is best to have someone who understands the jargon, the paperwork and the entire process, from the initial contact and forms until the completion day, when the contracts are signed.