The UK is on track for a record-breaking year in commercial property investment.
According to recent research figures, the European commercial property investment market has continued to gain positive momentum with transactions worth €104.9 billion in the first half of 2015.
This represents a 29% increase on last year, and investment volumes for 2015 are forecast to reach €230 billion, which would make it comfortably the best year since 2007.
Clearly, having access to good quality commercial lawyers is critical to a business with property investment in particular throwing up a broad range of legal issues for entrepreneurs to grapple with.
You can do a lot of the legwork yourself, but like all areas of business … it’s good to have experts on hand and with commercial property being a specialist area, mistakes and/or poor advice will cost so, here are some reasons why it’s best to get good quality commercial property lawyers on board early;
Commercial property lawyers will typically have good network connections.
Many small investors miss out on potential deals as the majority of commercial investments are snapped up by national agents.
A good lawyer can advise and guide you towards the commercial agents who know what is coming onto the market.
If there is future redevelopment potential, then your lawyer will be able to recommend reputable third party experts like building and environmental surveyors.
2. Commercial property deals often involve an extensive amount of documentation.
Whilst lots of basic legal documents are available online, commercial property is one of those specialist area of law where you need to leave the drafting and advising to the experts.
In particular, there is no standard format for leases on commercial properties and so you don’t want to leave yourself in a vulnerable position by leaving out something crucial.
3. Commercial property lawyers are best placed to coordinate and manage negotiations.
Commercial property is often tied in with business usage and business contracts.
Part of your future ownership may be restricted by a third party, for example, there may be a right of access over the property. This is something that your lawyer will be able to advise you on.
In addition to restrictions on use, your lawyer will be able to advise whether (in leaseholds) you need consent for alterations and whether the building is listed and/or in a conservation area.
Commercial property lawyers deal with due diligence on a daily basis and so they know what they are doing.
They can advise you on purchase price or lease premium negotiations, liaise with surveyor/estate agents, review your tax position and manage payment of your stamp duty, land registry fees and insurance costs.
4. Commercial property lawyers will be able to represent you in court in the event a dispute.
Commercial property lawyers will be able to represent you in court if you have a legal conflict and need to start legal proceedings.
You may be able to recover legal damages if you have suffered loss as a result of a property dispute.
This article was written by Rachel Furniss.
Got any legal questions or advice you need? Then get in touch with us for a free Startup Legal Session.