Commercial Property England

BUYING COMMERCIAL PROPERTY/REAL ESTATE – ENGLAND

1. Are there any restrictions on an overseas company or business buying commercial property?	No restrictions on overseas ownership.
2. Is land/property generally ‘registered’ so that the title/ownership is guaranteed?	A Central Land Registry operated by the UK Government guarantees the title to land. It establishes ownership, shows matters which affect the property and more recently shows prices paid for the property.
3. What are the basic requirements/procedures?	Carrying out searches with appropriate statutory bodies, raising enquiries with the Seller about the property, and agreeing contract documents. The purchase of the property is completed by a transfer document. Parties are represented by their own solicitors.
4. On average, how long does the process take?	The process takes on average between 2 to 4 months.
5. What searches are advisable?	Local Search –local authority matters relating to highways or compulsory purchase orders; searches concerning the public drainage system; coal mining and environmental matters for possible land contamination
6. What are estimated disbursement costs?	These costs vary but on a £1 million (1.4m€) purchase they would be approximately £5,000 (7,000€) including Stamp Duty plus legal costs.
7. What are the local and/or national tax considerations in the country of purchase?	Purchases subject to from 1% to 4% Stamp Duty except in certain Disadvantaged Areas where there is nil duty. Corporation Tax (on capital gains) and Value Added Tax may also be applicable.
8. What other annual local charges are obligatory?	Business rates are payable to the appropriate Local Authority. Charges are also payable to the Drainage Authority.
9. Are there any other issues to consider?	The terms of occupier’s leases affect the investment value of property but also form one of the most important benefits of investing in UK property. Contaminated land is an issue because landowners can be required to remedy contamination.