There are a number of steps you need to take before completing the purchase of the property and you become the owner of the business premises. Once you are committed to buying business property you will need to exchange contracts. This is when the solicitors representing the buyer and seller post the signed contracts to each other.
You will be ready to exchange contracts with the person selling the property when:
- both sides are happy with the contract
- the surveyor or solicitor has made all the necessary checks and searches on the building
- any planning permission has been granted
- you have raised the necessary money
Once you have exchanged contracts, the purchase becomes legally binding.
If you are paying part of the purchase price up front - known as a deposit - you do this when you conclude contracts. Once the solicitor has received the agreed deposit from the buyer they will pay this to the seller. The deposit is non-refundable.
Completing the sale
Once the contract is agreed you can make arrangements for the completion date. You are then ready to complete the purchase and become the owner of the property. Prior to completion, make sure you have adequate insurance in place. On the completion day, your solicitor will hand over the purchase price - paid by the mortgage company or lender - to the seller's solicitor. Your repayments to the lender begin.
Stamp duty and land registry
The last things to do after completion are to:
- pay Stamp Duty Land Tax - find out how much you are likely to pay using the Stamp Duty Land Tax calculator. You must send a Stamp Duty Land Tax return to HM Revenue & Customs and pay the tax within 30 days of completion or you may face penalties and interest.
- register your ownership with the Land Registry - see land registration
Your solicitor receives the deeds to the property - papers giving details of the property and the owner. The deeds are then sent to the lender.