How Long Does It Take To Sell A Commercial Property
The time frame for selling a commercial property can depend on many different elements, leading it to take anywhere from a couple of weeks to a year or more. Time frames are affected by market factors such as local demand for a building of your type, and the price of the property itself. There are also more legislative and complex factors to take into account including any local planning constraints that might apply, any issues with the property itself, and whether you are selling a freehold or leasehold property.
In order to speed up the process, there are a number of documents you can provide your solicitor that will streamline the sale of your commercial property. They include:
Planning and Building Regulations Documents
These may include details of current planning permissions, alongside any building regulation certificates the property may hold.
Replies to CPSEs (Commercial Property Standard Enquiries)
These are a set of standard questions asked of commercial property sellers. It’s important that you answer them accurately because buyers could sue you for misrepresentation if they feel there is an incorrect reply.
Energy Performance Certificate
Just as with a domestic property, you’ll need to provide an EPC showing the energy rating and CO2 consumption of the property.
Legally, you must check for asbestos and produce an ongoing management plan to mitigate any risks if there is asbestos present in the building.
Fire Risk Assessment
A fire risk assessment should be made available to the buyer of any property that you are responsible for.
The Process of Selling
There are several steps towards selling a commercial property, all of which require the correct presentation of the documents above. Once you have garnered interest from a potential buyer, which can itself take time, these steps will need to be followed to ensure both parties are happy to move forward and complete the sale.
Drafting a Contract
First, a draft contract will need to be sent to the solicitor of the buyer. Alongside this will be sent copies of the Land Registry title documents, as well as any other forms or papers that you have provided as above.
A Redemption Statement
This only applies if you currently have a mortgage secured against the property. If this is the case, your lender will need to check that the sale price from the property will cover the remaining cost of your mortgage. If they are satisfied, you will receive a redemption statement allowing the sale to proceed.
The solicitor of your buyer will have reviewed the draft contract sent to them, and they may have queries based on the supporting paperwork and any searches of the property. These enquiries will all need to be responded to and resolved before you can proceed further.
Exchange of Contracts
Once any enquiries have been responded to, and the buyer is satisfied with the responses, each party can move to exchange contracts with each other to be signed.
Payment and Completion
The deposit will be paid first, followed by completion of the purchase’s balance. Any sum required to settle your mortgage will be sent to your lender, and you will receive the remainder of the proceeds.