Selling a Commercial Property: Processes & Considerations

Selling a commercial property is a large undertaking, which demands careful planning, strategic thinking and a deep understanding of the market. Whether you’re an experienced investor looking to capitalise on your assets or a business owner seeking to expand your business, navigating the complexities of the commercial property sales process requires a well-structured approach.

In this article, we will explain the best practices for selling a commercial property, highlighting the key steps involved in the process.

Best steps to follow when selling a Commercial Property:

1. Ensure you have a valid Energy Performance Certificate – Similar to residential property sales, ensuring a valid Energy Performance Certificate (EPC) is in place is essential for most commercial property transactions. To confirm your property’s EPC validity, you can conveniently access this information through the GOV.UK website. This certificate identifies the property’s energy efficiency, by an A to F rating (with A being good and F being poor), and aids potential buyers in making informed decisions. 
2. Ensure Title Registration – It’s crucial to verify the registration status of your property’s title. This can be easily accomplished by utilising the “Search property ownership Information” feature on the Land Registry website, where you can input your postcode for the relevant information. In the majority of cases, your property’s title will be registered. Nevertheless, if it’s unregistered, it’s highly recommended to initiate the registration process before proceeding with any sale. This step is particularly important as most prospective buyers typically require a registered title.
3. Complete standard enquires – Comprehensive standard enquiries, more extensive than those in residential transactions, must be undertaken. Collaborate with your legal and tax advisors to discuss your responses. Certain information, including tax-related details like the property’s VAT status, capital allowances and potential tax implications of the sale, should be gathered. Moreover, engage your tax advisor to strategise how to structure the deal for optimal tax efficiency.
4. Other essential requirements – You must also conduct a fire risk assessment and, if the property’s age suggests the presence of asbestos, an asbestos survey. Additionally, evaluate recent modifications, if any exist, pertinent documents such as planning permissions, building regulation approvals and guarantees/warranties for the work carried out should be produced.
5. Obtain valuation advice – Seek Valuation Guidance: Lastly, it’s essential to acquire valuation advice regarding the purchase price. Engaging with commercial agents is highly recommended, as they possess comprehensive knowledge of the market dynamics and can offer optimal strategies for promoting the property sale to achieve the best price. Taylor Bracewell is well-versed in collaborating with local commercial agents and maintains strong relationships with them.

As you embark on the journey of selling a commercial property, this guide has equipped you with a solid foundation of best practices and key steps to follow. While these outlined stages provide a key framework, it’s important to recognise that every property sale is unique and additional considerations may arise based on your specific circumstances.

How can our Commercial Property team help?

Our experienced Commercial Property team are here to guide you through every step of the journey. From ensuring regulatory compliance to facilitating smooth communication with tax advisors and collaborating with local commercial agents, our experts bring a wealth of knowledge to the table. If you wish to speak to our Commercial Property team, they can be reached by calling 01302 341 414 or 0114 272 1884. Alternatively, you can reach the team by filling out our online enquiry form.

Count on Taylor Bracewell to provide you with the expertise and support you need to navigate the challenges and seize the opportunities in the dynamic world of commercial property sales.