Property Acquisitions

Legal costs depend on the property value and complexity. For a straightforward acquisition up to £500,000, expect £2,000-£5,000 in solicitor's fees plus VAT. For larger or more complex purchases, costs can be significantly higher. Beyond legal fees, you'll pay Stamp Duty Land Tax (SDLT), which ranges from 0% on properties up to £150,000, through to 17.5% on purchases over £2 million. You'll also pay for searches (typically £300-£800), a surveyor's fee, and possibly specialist surveys depending on the property type. Don't forget mortgage fees if you're borrowing, surveyor's fees, and arrangement fees. I provide a detailed cost estimate before you commit, so you know exactly what you'll pay.

A straightforward acquisition typically takes 8-12 weeks from exchange of contracts to completion. The negotiation phase before exchange can take 4-8 weeks depending on how quickly the parties are prepared to move and whether any issues need resolving. If complications emerge during due diligence—environmental concerns, planning issues, or title problems—things slow down while these are investigated and resolved. I manage the process to move things along efficiently, but I won't rush you into completing before you're satisfied with all the investigations and contract terms.

A surveyor will inspect the building's structure, condition, and any obvious defects, and prepare a report. There are typically three levels: a basic valuation report (mostly for lender purposes), a homebuyer report (covering main defects), and a full structural survey (most detailed). For commercial property, I strongly recommend at least a homebuyer report. A survey costs £500-£3,000 depending on the property size and type. It's worth doing because it can reveal expensive problems early—a survey might discover subsidence, structural cracks, or roof issues that could cost tens of thousands to fix. This information feeds into whether you proceed and what price you're willing to pay.

A restrictive covenant is a legal restriction, usually written into old title deeds, that limits how a property can be used. For example, a covenant might say the property can only be used as a dwelling, not for business. Another might prohibit certain types of use. If you breach a covenant, anyone with the benefit of it could take legal action against you. Not all covenants are enforceable (some are too old or the person with the benefit can't be found), but it's worth checking. If a covenant would prevent your intended use, I can advise on obtaining indemnity insurance to protect you against the risk of enforcement, or negotiating with the person who has the benefit of the covenant to get it removed or varied.

If the property has existing tenants, you inherit those tenancies when you complete the purchase. You become the landlord responsible for collecting rent, maintaining the building, and complying with the tenants' lease terms. You'll have a revenue stream but also ongoing obligations. Before you complete, I'll review each tenant's lease to check for details like: rent levels, rent review dates, break clauses (which might allow them to leave soon), repair obligations, and any notices they've served or complaints. If a tenant has a break clause coming up, or if the lease terms are unfavourable, that affects the property's value. This is why investigating sitting tenancies thoroughly is so important.

Standard searches include a local authority search (revealing planning history, building control, contaminated land, highways, and planning enforcement), environmental search (historical uses and contamination risks), water and drainage search (water supply and foul/surface drainage arrangements), and a search of public records. Depending on the property type and location, you might also want Coal Authority search (if on former coalfields), radon search, or specialist surveys. These searches typically cost £300-£800 in total. They can reveal serious issues: for example, the local authority search might show the property is in a flood risk area, or the environmental search might show historical industrial use suggesting potential contamination. I'll advise which searches are essential for your property.

Exchange of contracts is the moment when the purchase becomes legally binding. Before exchange, either party can walk away without legal consequence (though practical costs may be lost). Once you exchange, you're committed to completing—if you don't, you could face damages claims. At exchange, you'll typically provide a deposit (usually 10-20% of the purchase price, sometimes more if negotiated). The seller's solicitor sends a signed copy of the contract to you, and your solicitor returns a signed copy. Once both are signed and exchanged, the deal is locked in. From exchange, you and the seller are protected by the contract terms, and either party can enforce them if the other breaches.

Just before completion, I'll carry out a final search (a 'down-search') at the Land Registry to confirm nothing's changed with the property's title since we last checked. You should arrange buildings insurance to start on the completion date (your lender will require this). If the property is tenanted, you might want to serve notices on tenants confirming your ownership. Agree with your surveyor the exact condition the property is in—sometimes properties deteriorate between the offer and completion, and you might want to raise this with the seller. Finally, confirm your completion funds are ready and transfer them to your solicitor in good time. I'll send you detailed completion notes explaining exactly what happens on the day and what you should expect.