How to Sell Property?

 

Preparing the Information for Commercial Property Buyers

As part of your marketing campaign, it is important to understand what information buyers are likely to require when considering purchasing a commercial property. The principal considerations are suitability, location and price. A complete range of additional information should be provided to prospective buyers, in order to secure a quick sale.

The Best and Worst Times to Sell Your Commercial Property

The worst time to sell your commercial property would be during the recession phase when the property prices are the lowest and financing availability becomes unaffordable for many. This often results in the consequential loss of tenants and commercial property owners struggle to find occupiers.

Selling during the expansion stage, when financing has become affordable, will encourage stronger bidding and increased selling prices.

Use Classes and Planning Permission Related to Selling a Commercial Property

Commercial properties are covered by The Town and Country Planning (Use Classes) Order 1987, which covers the uses of business premises and land and divides them into different categories.
Use Classes Use Classes Description General Development
Order 1987 Order 1972 Order 1988
A1 Shops Class I Shops, retail warehouses, hairdressers, undertakers, travel and ticket agencies, post offices, dry cleaners, etc Pet shops, cats-meat shops, tripe shops, sandwich bars Showrooms, domestic hire shops, funeral directors No permitted change
– – – –
A2 Financial and Professional Services Class II Banks, building societies, estate and employment agencies Professional and financial services, betting offices Permitted change to A1 where a ground floor display window exists
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A3 Food and Drink Restaurants, pubs, snack bars, cafés, wine bars, shops for sale of hot food Permitted change to A1 or A2
– – – –
Sui Generis Shops selling and/or displaying motor vehicles Permitted change to A1
– – – –
Launderettes, taxi or vehicle hire businesses, amusement centres, petrol filling stations No permitted change
– – – –
B1 Business Class II and Class III Offices, not within A2, Research and development studios, laboratories, high tech Light industry Permitted change to B8 where no more than 235sqm
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B2 General Industrial Class IV-IX General industrial Permitted change to B1 or B8 B8 limited to no more than 235 sqm
– – – –
B8 Storage and distribution Class X Wholesale warehouse, distribution centres, repositories Permitted change to B1 where no more than 235 sqm
– – – –
Sui Generis N/A Any work registrable under the Alkali, etc. Works Regulation Act, 1906 No permitted change
– – – –
C1 Hotels Class XI Hotels, boarding and guest houses No permitted change
– – – –
C2 Residential Institutions Class XII and Class XIV Residential schools and colleges Hospitals and convalescent/nursing homes No permitted change
– – – –
C3 Dwelling Houses N/A Dwellings, small businesses at home, communal housing of elderly and handicapped (Six or less residents unless living together as a family.) No permitted change
– – – –
Sui Generis N/A Hostel No permitted change
– – – –
D1 Non-residential Institutions Class XIII, Class XV, and Class XVI Places of worship, church halls Clinics, health centres, crèches, day nurseries, consulting rooms Museums, public halls, libraries, art galleries, exhibition halls Non-residential education and training centres No permitted change
– – – –
D2 Assembly and Leisure Class XVII and Class XVIII Cinemas, music and concert halls Dance, sports halls, swimming baths, skating rinks, gymnasiums Other indoor and outdoor sports and leisure uses, bingo halls, casinos No permitted change
– – – –
Sui Generis Class XVII Theatres No permitted change

Local Searches Relating to Selling a Commercial Property

Although local Searches are usually carried out at the buyer’s cost, some proactive commercial property sellers carry them out at their own cost, in order to achieve a quicker and more effective sale process. This may make their commercial properties more attractive to prospective buyers. Given the cost of producing this pack, it may be a worthwhile exercise, as this cost is usually a very small percentage of the overall sale price.

Finding an Estate Agent to Sell Your Commercial Property

Selling your commercial property should be carried out by appointing a professional and experienced Commercial Estate Agent. Next Property can assist you with this. There will be a fee for appointing one of our Commercial agents to sell your property.This is a specialist industry and our knowledge and competence can be make a significant difference to likely sale proceeds.

Making the Most Out of Viewings

Once your property is being marketed, we will be able to maximize viewing opportunities by arranging viewings for you at suitable times. Alternatively, you will need to provide keys and access to any security measures you have.

Offers on Your Commercial Property

All offers received on your commercial property will go through Next Property Commercial. We are required by law to inform you about any offers. You are not obliged to accept offers received. We will be able to formally advise you on any offers and the merits of the same.

‘Heads of Terms’ (HOTS)

Any proposed transaction begins with drafting a document, which clearly states the primary terms that both parties have agreed to. This document is called the ‘Heads of Terms’ (HOTS).

This means that both parties will only be subject to the comprehensive agreements that are described within the main contract. When both parties agree the HOTS, the legal work can begin. The HOTS can be a complicated task and Next Property Commercial will draw up the Heads of Terms. By using Next Property Commercial with our years experience, we can advise on the best Heads of Terms to put forward.

Exchange of Contracts and Completion

Until contracts have been exchanged, you can choose to sell to another interested party unless a lockout agreement has been entered into.

Completion is usually a month later but can be varied prior to exchange of contracts. This again will be outlined in the HOTS. When the balance is paid, the contract is completed.

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