Sale of a multi-let commercial property (seller)—before exchange
Sale of a multi-let commercial property (seller)—before exchange

The following Property practice note provides comprehensive and up to date legal information covering:

  • Sale of a multi-let commercial property (seller)—before exchange
  • Provide the buyer’s solicitor with a full package of legal documentation and management information
  • Applying for landlord’s consent
  • Draft and negotiate the sale contract
  • Is the transaction a TOGC?
  • Discharge of the seller’s mortgage and completion arrangements
  • Capital allowances
  • Is the seller obliged to insure in between exchange and completion?
  • Reporting to the seller

Provide the buyer’s solicitor with a full package of legal documentation and management information

This should include for each property:

  1. evidence of the seller’s title

  2. on a sale of part (or sale of unregistered land), a plan of the property which meets HM Land Registry’s strict requirements on plans

  3. replies to pre-contract enquiries and supporting documentation, and

  4. (where applicable) a copy of the energy performance certificate

Remember to apply for any necessary third party consents.

Applying for landlord’s consent

If landlord’s consent is required, the seller’s solicitor should make a formal application (even if the seller has already discussed the matter with the landlord). A landlord’s duty to consent within a reasonable time under LTA 1988 does not apply until the application is properly served on the landlord (as opposed to its solicitors) in accordance with the notice provisions in the lease.

See Precedents: Application for landlord’s consent to assign, Licence to assign—new tenancy and Practice Notes: Acting for a tenant—assignment of existing lease—key issues and Landlord's consent to assign or underlet.

Draft and negotiate the sale contract

Precedents are a useful starting point. However, the seller’s solicitor must ensure that:

  1. the contract:

    1. reflects the heads of terms and includes any special conditions required to protect the seller or to reflect the facts of the case

    2. where landlord's consent is required to the assignment of a leasehold interest, is conditional upon

Popular documents