You will need to have an understanding of the legislation concerning commercial property sales, prices of local commercial properties and recognising the best time to sell. It’s also important to know in advance the costs involved to you as a seller, so you can calculate what your net proceeds will be.

Here at RIB we have over 50 years experience selling commercial & mixed use properties so are able to offer you expert advice which can help you obtain the optimum price for your commercial or mixed use property. Do not hesitate to Contact our expert Commercial Sales and Investment team with any questions you may have.

Selling costs involved

Whether you are selling an office warehouse, retail or a mixed use building there are a number of costs you will need to take into consideration. These include:

• Solicitor fees – solicitors usually carry out conveyancing for a fixed fee and you may be able to negotiate to a lower fee. It is worth obtaining a number of quotes. The fees you pay will also depend on how smoothly the sale goes.

• Estate agent fees – estate agents are in competition with each other and so it is worth shopping around for a good rate. Most agents typically charge between 1% and 3% of the property value, but again you may be able to negotiate.

• Finance redemption fee – if you have a mortgage on your commercial property and you pay this off early, you may be liable to pay a redemption fee. It is a good idea to check with your lender so that you are aware of these costs.

• Capital gains tax – you should speak to your financial advisor if you are selling an investment property as you might be liable to pay capital gains tax

• Mortgage arrangement fees – if you cannot transfer your existing mortgage for any reason, you may be liable to pay mortgage arrangement fees for any new mortgage you require.

• Removal costs – if you have equipment, furniture or other assets in your commercial property and these are not part of the sale, you will need to arrange for these to be removed at your costs.

Preparing buyer information

Before marketing your property, it is important to understand what your buyers will be looking for in terms of carrying out their due diligence. RIB’s Investment team will work together with your Solicitor to ensure a full legal pack is prepared, which will include;

• Planning permissions, use classes and lawful use certificates
• Commercial energy performance certificate (EPC)
• Details of business rates, stamp duty land tax and any other costs the buyer will be liable for
• Service charges if applicable
• Up to date Searches
• Health & Safety records including an Asbestos survey, if applicable
• Leases and Tenancy information, if applicable

Accepting an offer

All offers received will be presented to you by one of our team. In many sales we are involved in, multiple offers are received and there are a number of factors to consider when deciding, including;

• Consider the position of the buyer and their financial status
• Are they a cash buyer or do they have a mortgage?
• Is their funding already in place – do they have a finance offer?
• What are the track records of the buyers?
• Are the offers subject to any conditions?
• What is the proposed timing for exchange & completion?

Your solicitor

One of our team will work closely with your Solicitor to ensure a smooth process to the legal process. We will be on hand to provide commercial advice as well as what contract clauses are reasonable and unreasonable.

Choosing the right solicitor from the start will help to ensure a quick and efficient property sale. Your solicitor is there to provide assistance throughout the process, so feel free to ask them any questions as and when they crop up. If there are any unforeseen solicitor costs that are to be added to your bill, your solicitor should make you aware of these well in advance and in writing.

Exchange of contracts and completion

Once contracts are exchanged, your buyer will pay a deposit to the solicitor and a date for completion will be agreed between all parties. On the completion date all legal factors of the sale are completed and the mortgage lender will release the remaining money to the solicitor. You will get a phone call from your solicitor to tell you that the money has been received and is on its way to your account, and you will need to hand over the keys and any other items to the new owner.

This is a typical description of the commercial sales process, but it is worth noting that all sales are different and depend on the nature of the sale and any complications that may arise during the sales process.