Buying a commercial property from which to operate your own business, or to add to an investment portfolio, from auction is well worth considering as it can be cheaper.
Having a good commercial lease solicitor in London, such as Saracens Solicitors on hand, before, during and after can help you ensure you have all your i’s dotted and t’s crossed.
Quicker, but scarier
If you’re going to buy at auction, you would do very well to go to a few commercial property auctions beforehand, so that you can get comfortable with the process and surroundings before you need to part with any money.
Here’s where an experienced commercial lease solicitor in London can guide you and make sure you don’t buy anything that doesn’t suit your needs, or will be hard to find tenants for. You can go through online and printed catalogues to earmark properties and visit them before the auction, taking a builder, architect or engineer with you to spot structural problems and give you an idea of repair costs.
Check the legal information
You should be able to download any legal information about a property and Saracens Solicitors, as your commercial lease solicitor in London, can perform correct due diligence. This involves checking the title, carrying out searches, identifying uses for the property, looking at plans for the local area, and identifying potential issues with water/drainage connectivity at the property or if there are any environmental matters to be aware of and so on.
At Saracens Solicitors, we can help guide you with any planning permission you may need for the commercial use of the property. Often, this means planning permission for ‘change of use’, and it can save a lot of time and money if you prepare for this by knowing if your plans for the property fit with the local authority’s plans for the area.
Buying at auction
As soon as the auction ends, you generally need to put down a 10% deposit on the property you successfully bid on. If you go back on your decision, you are likely to lose your deposit, and can also be sued for breach of contract.