FAQs

A usual transaction for the purchase of a commercial property usually takes between 8-12 weeks to complete, providing there are no unforeseen delays.

It will depend on the type of property being purchased and if there are any complexities to the transaction. Some properties such as pubs and restaurants can be subject to licences, other properties can be subject to other matters which can result in the transaction taking longer than expected.

If you own the freehold it means that you own the building and the land it stands on, subject to any mortgage or charges over the property. The Land Registry records will show your name as the freehold proprietor of the property.

Leasehold means that you have a lease from the freehold proprietor (or landlord) to use the property for a number of years, subject to any rent payable. The leases for commercial property can vary in length depending on the agreement made with the landlord and can be varied in their agreed terms and obligations.

We would advise you to have a survey carried out to ensure that the property being leased meets your requirements. Depending on the agreed terms of the lease, once entered into, you may become responsible for the repair and maintenance of the property both internally and externally. If the property has a defect that would not be highlighted other than by a survey this could become very expensive to put right once the lease begins.

The next step would be to instruct a solicitor to act for you. They will use the heads of terms to draft the contract, lease (if applicable) and transfer documents.

It is not compulsory to instruct a solicitor but it is advisable to do so. Leases are long, formal documents with lots of legal terminology within them. A solicitor will help clarify the terms of the lease and ensure you fully understand what you are agreeing to.

Engaging in sensible discussions at an early stage will allow both parties to go their separate ways, whilst retaining as much value as possible in their respective businesses. Early resolution, perhaps through mediation or without prejudice discussions, can allow the business to be carefully and fairly divided up, or for one party to exit the business with an appropriate amount of compensation.

Directors of companies have specific duties to the company (known as fiduciary duties), which oblige them to act in the best interests of the company, even if those interests conflict with their own personal interests.

Sometimes directors try to syphon parts of the business off into their own companies, so that they can retain the profit for themselves. If you become aware of a director doing this it is important to challenge the behaviour as soon as possible to avoid any suggestion that you have accepted it by conduct. Recovering loss for the company is more difficult than preventing it occurring in the first place. If you become aware of any activity like this, it is important to seek legal advice as soon as possible so that you can assess your options.