Our experience, quality of service and speed of delivery, have helped the firm to develop an excellent reputation in this area.
Who is it for?
How the service works
For most businesses, premises are a key element in the structure of the business operation. Black Norman’s Commercial Property team will ensure that a client’s interests are properly protected. Our approach is to ensure that the matter is handled smoothly and efficiently and that we help you achieve your objectives on time, however tight your deadlines
How much will it cost?
From the outset, we will discuss with you the fees that we expect to charge and which will, of course, depend on the type of transaction. We offer a competitive service and, at the outset, will give you details of our charges and anticipated disbursements.
Black Norman act for both property developers acquiring land and for clients selling for development. We can assist with advice on important planning and environmental issues and on the method of acquisition and disposal, be it by sale, conditional contract, option or joint venture agreements.
We have close working relationships with and can recommend Building Surveyors, Planning and Environmental Consultants, Structural Engineers and Tax Advisers.
The relative high return from investment property has made this an attractive investment in times of low interest rates.
We are experienced in helping clients who buy and sell both commercial and residential investment properties. Both require a thorough understanding of the leases or tenancy agreements to which such properties are subject. There are traps for the unwary buyer who is not fully advised of and fully understands his obligations as landlord or the obligations of his tenant. A well advised landlord can realise the full potential of an investment property, perhaps not appreciated by a previous owner.
In conjunction with your accountants, we are able to advise on the VAT and other tax implications of purchasing an investment property
Landlord and Tenant
The Commercial Property team has particular expertise in acting for either landlord or tenant in dealing with leases of all types of commercial property on a national basis. Please be wary of granting or accepting a lease without having obtained the proper legal advice. Leases are usually far more complex than transfers of freehold property and the repercussions of not fully understanding ones obligations can be very costly.
We have highlighted below a few of the key issues which parties to a lease should understand when negotiating terms:
The length of the term
During the past fifteen years (and with the exception of Leases of licensed premises) the tendency has been for Tenants to seek Leases for shorter terms (10 or 15 years or less) than was previously the case.
We will advise both Landlord and Tenant of the desirability of long or short terms, and also on the circumstances in which the Tenant, by virtue of the renewal provisions of the Landlord and Tenant Act 1954, can insist on his Landlord granting him a renewal Lease at the end of the current term, and likewise the grounds on which a Landlord is entitled to decline to grant such a Renewal Lease.
Rent and rent reviews
We advise both landlord and tenant to obtain professional advice to establish the fair rent for the premises (bearing in mind the repairing obligations of the parties). Normally reviews will be negotiated every three or five years during the term. Rent review clauses in leases are lengthy and detailed and need very careful consideration by reason of their complexity.
Whether a lease should contain an ‘option to determine’ i.e. whether the landlord or tenant should be entitled to break the lease at some point during the term. Break clauses are frequently negotiated on behalf of tenants, who are now inclined to be in a stronger negotiating position than was previously the case. Additionally, it is essential for both landlord and tenant to consider whether a break clause should be conditional on, for example, the payment of rent and/or the observance of the tenant’s covenants. An onerous condition may result in a tenant who has a break clause not, in practice, being able to rely on it, and the tenant in particular needs careful advice in this regard.
Obligation to Repair
It is particularly important for a tenant to understand the extent of his obligation as to repair, be it an internal repairing liability, a full repairing liability and/or a liability to refund to the landlord a proportion of the costs incurred by the landlord in repairing the building of which the premises form part.
We can advise on the following issues that a landlord and tenant may wish to clarify in respect of repairing obligations in their lease:
Assignment or Sub-letting
In settling the terms for a commercial lease, the landlord and tenant should understand and consider the following matters:
A well advised landlord will wish to keep absolute control over the structure of the building, and a well drawn lease will normally provide for the benefit of the landlord that a tenant is not entitled to make structural alterations.
On the other hand, a tenant must consider whether he might, either at the beginning of, or during the term, wish or need to make structural alterations, and if so he should press for the Lease to permit this, (subject to obtaining the landlord’s prior consent). It is also essential for a tenant to have any fitting out works, structural or otherwise, approved before the lease commences, so that he can absolutely sure that the landlord does not unexpectedly raise objections once the lease has been completed. Often there will be a need for a formal Licence for Alterations, the drafting of which will require detailed consideration.
A lease should state how a tenant’s improvements are to be dealt with when the rent is reviewed, especially if the tenant carries out extensive fitting out works. Under what circumstances is the landlord able to in effect “rentalise” improvements, and to what extent and in what circumstances is the tenant able to ensure that any improvements he carries out are not taken into account when rent is reviewed.
The authorised user of the premises
The landlord will wish to ensure that the “User” provisions in a lease prevents a tenant from changing its use to one which attracts a lower rental value. A well advised tenant will also wish to make sure that the user provisions in the lease allow him as much flexibility as is reasonable, so that if he has to assign the lease, he is not unduly limited when the premises are marketed as to the type of business which the lease allows to be carried on.
In addition, it is of particular importance to the commercial landlord or tenant to have a full understanding of the need for and the effect of the formal notices required in connection with leases. These notices govern, amongst other things, the termination and renewal of leases, the operation of break clauses, the operation of rent review provisions in leases, and repair and dilapidation notices. Failure to serve or deal with notices within the relevant time limits can result in severe consequences.
Sale and Purchase of Business Property
Buying and selling business premises is often complex and is likely to involve consideration of many of the following issues on which we advise:
The negotiation of the purchase price
We will assist you to obtain advice from surveyors and structural or environmental engineers, so that the real value of the property can be ascertained at an early stage, so as to avoid the buyer incurring unnecessary expense.
Completing a purchase or sale transaction within the required timescale and at a competitive cost. We will discuss both the timing and the cost with you at the very beginning of the transaction so that you will know exactly where you stand. Additionally we will keep you regularly informed on both issues as the matter progresses.
Searches and pre-contract enquiries
This will include advice on planning matters so as to ensure that your proposed use of the premises is the authorised planning use and that any planning conditions are acceptable to you. We will also ascertain whether there are any adverse Local Authority proposals affecting the property which might cause you to reconsider proceeding with the purchase.
The negotiation of the form of the Contract
The contract should properly record all aspects of the agreement between the parties. In particular there is a need for careful drafting if a sale and purchase contract is to be subject to the buyer obtaining planning permission or (in respect of licensed premises) to the buyer obtaining a Premises Licence.
Seller’s title to the premises
The buyer should be aware of all rights, reservations, covenants and conditions to which a property is subject. In particular, in the case of development land or premises, where a buyer proposes to develop or change the use of the land, it is most important that the land is are not subject to restrictive covenants precluding the relevant development or change of use. Frequently land is affected by historic restrictive covenants and we are well experienced in dealing with insurance companies in order to obtain a Restrictive Covenant Indemnity Policy so as to allow a Developer to proceed without the worry of a claim being made against him.
Value Added Tax
It is equally important for the Seller and the Buyer to understand the relevance of Value Added Tax in a commercial property transaction, and we are able to advise, (in conjunction with your accountants) as to the desirability of the property owner making a VAT Election in respect of premises and in other related VAT issues.
It is most important that a buyer has a full understanding of the many conditions attached to any loan which is being obtained before committing himself to the loan. We are able to advise on funding and can deal with the paperwork required by a Bank, Building Society or other Lender.
Ask to speak to Stuart or Jason