How much does commercial conveyancing cost?

Commercial conveyancing tends to be more complex than residential transactions and, as such, more expensive.

It’s vital that business owners, investors, and landlords understand commercial conveyancing costs to achieve effective budgeting and financial planning.

Here’s an overview of fees, cost factors, and information on budgeting for your commercial property purchase.

Average Costs for Commercial Conveyancing

Commercial conveyancing costs vary on a case-by-case basis. Straightforward transactions typically range from £850 to £2,500, while fees for more complex cases can rise significantly.

The final amount depends on several factors, including the property’s value and location, the transaction type (such as buying, leasing, or remortgaging), and the level of service you require.

Fees occasionally reach tens of thousands for high-value transactions, especially those involving due diligence on large portfolios or development projects.

Commercial Conveyancing Cost Factors

Several factors can affect commercial conveyancing costs, including:

Property Value and Location: Higher-value properties or those in prime commercial locations, like London, typically incur higher fees due to increased legal risks and complexities. For example, prime commercial locations may have more stringent planning regulations to navigate.

Transaction Type: Buying a property is generally more expensive than leasing, as purchases often involve greater due diligence.

Due Diligence Requirements: A property with a complicated legal or planning history, or one subject to environmental regulations, will require more extensive research and, therefore, incur higher costs.

Lease Terms and Conditions: The conveyancing process may take longer if a lease involves unique or complicated terms, such as break clauses or rent reviews. For example, a lease with a break clause conditional on performance criteria being met can require additional legal work, thereby increasing the transaction’s cost.

Typical Fee Structure

Commercial conveyancing fees usually consist of the following:

Fixed Fees: Many firms, including Toomey Legal, offer fixed fees for basic services. While fixed fees can help you with budgeting, they may not cover unforeseen complications.

Hourly Rates: Some commercial property solicitors charge an hourly rate, ranging from £150 to £350 per hour.

Disbursements: These are additional costs your solicitor pays on your behalf, such as Land Registry fees, search fees, and stamp duty. Disbursements can add several hundred or even thousands to your total bill.

Additional Costs to Consider

As well as legal fees, there are other costs to consider in commercial conveyancing, including:

Search Fees: Local authority, environmental, and planning searches are critical to uncovering potential issues with the property. These typically cost between £200 and £400.

Stamp Duty Land Tax (SDLT): SDLT is payable on commercial properties valued over £150,000. The rate varies according to the transaction value.

Land Registry Fees: The Land Registry fee varies depending on the property’s value, ranging from £40 to £910.

VAT: Most solicitors’ fees are subject to VAT, currently 20%, which can substantially increase your total costs.

How to Budget for Commercial Conveyancing

Requesting a detailed cost breakdown from multiple solicitors allows you to make informed decisions, anticipate potential costs, and avoid unforeseen expenses, giving you more control over your budget.

Choosing the Right Solicitor

Choosing a solicitor with expertise in commercial conveyancing is crucial. A solicitor with relevant experience will ensure a smooth, efficient process and give you confidence in your decisions.

Look for solicitors with a track record in commercial property transactions, particularly those that align with the type of property you’re dealing with.

While commercial conveyancing can be expensive, a well-structured budgeting approach can make the process more manageable. By understanding the cost factors, anticipating additional expenses, and choosing a solicitor with relevant experience, you will be more likely to experience a predictable, surprise-free conveyancing journey.

Need expert, cost-effective help with commercial conveyancing?

Toomey Legal offers quality commercial property advice at value-driven rates. We deliver our reliable expertise in a fast, professional, and responsive way, offering practical solutions at an agreed fixed rate.

We offer a fixed fee service of £995+VAT for the purchase of a commercial freehold property. This is the total cost of our service, although there are some disbursements payable.

Call now for a quote or fill out the below form with details of your enquiry.