Buying a retail unit? What you need to know

If your business has reached the point where you’re ready to purchase your own retail unit, you’ve reached an exciting point in your company’s lifecycle – but you’re also facing a legally challenging time!

When considering the purchase of a retail unit for your business, it’s essential to approach the transaction with a thorough understanding of the legal and practical considerations involved.

The legal issue

All commercial property transactions carry several legal implications which you need to consider when buying your unit, including:

• Due diligence on restrictions, charges or planning permissions
• Stamp Duty Land Tax (SDLT)
• Sale terms and cost

However, retail units also come with certain unique considerations. You’ll need to assess these in detail before proceeding with any purchase:

• Fixtures and fittings – Your contract of sale should clearly define what you are purchasing, as many retail units will have fixtures and fittings that you may need and which you will need to purchase from the previous owner.
• Use categories – Retail properties in the UK are generally classified as Class E, which allows for a range of commercial uses including retail, financial services, and cafés, so you’ll need to ensure your property has the right categorisation.

Addressing your challenges

Getting the right legal support ahead of buying your property is crucial to a smooth experience and an easy purchase of the right retail unit for your business!

During the sales process, you’ll likely need support with:

• Contract negotiations – This includes clauses such as included fittings, costs and responsibilities, to avoid disputes further in the process and maximise the possibility of a successful sale
• Surveys – You’ll need to make sure that the property is in a sufficiently useable condition that’s in line with the price and safety regulations
• Permissions – An expert can help check that your property has planning permission and the right usage permissions to function as a retail unit, as retrospective permissions aren’t guaranteed and can be costly.

Not only will taking the right steps ensure that you can access your retail unit as quickly and efficiently as possible, but it will also protect its resale value as part of an exit strategy or growth plan.

Navigating the waters of purchasing a retail unit can be complex, so it’s important to find yourself the right captain!

Contact our Commercial Property team today to discuss your needs and access tailored support.