Secure Your Property

Planning Application

When considering a new development, alterations or a change of use, the next step will be to make a planning application. Without permission from the local planning authority, any work undertaken, or use of the property, could be illegal. There are exceptions to this, but it's essential to seek professional advice as soon as possible. Best practice usually recommends consulting with the local planning authority before making a planning application. They will be able to advise on the likelihood of planning permission being granted as well as ways in which any difficulties might be overcome. Planning law is set out in various forms and includes local land use development plans as well as central government planning policy guidance. Your project manager, agent or Gateway to London will be able to make suggestions regarding the most appropriate timing for a planning application.

Building Regulations

As well as planning approval, building regulations will need to be strictly adhered to. These regulations set standards for construction, alterations and use of buildings and cover a different range of variables to planning permission. The regulations are managed by the local authority building control department, who will need to be consulted. If any building regulations or planning permission concerns exist, get in touch with the Development Control Planning team at the local council, or speak to your project manager and advisors. Gateway to London has a wealth of experience in helping companies overcome these hurdles, so it's a good idea to draw on our skills as early in the process as possible.

Enter into Negotiation

After selecting a suitable site the negotiating process will get underway, as well as the process of developing an exit strategy for any existing premises that are being discarded. The direction the process takes from here will depend upon the type of property a firm is seeking to acquire, the terms of the contract itself and existing floorspace occupation. Gateway to London or a qualified chartered surveyor can negotiate the "heads of terms" on your behalf. A solicitor will be needed to draft, and then finalise, the agreements and contracts. An important point to remember about negotiating on property is that one's negotiating position is strongest in the early stages when commitments are at their lowest; this balance often shifts to favour the landlord as the process moves towards completion. It helps to fully understand the landlord's perspective and to be extremely clear on what needs to be achieved. A successful negotiation is one in which both parties needs are satisfied.

The following issues will need to be covered at some stage during negotiations:

Acquiring land

• Who owns the land?
• What's a guide price from where negotiation can begin? 
• What is the full range of acquisition options?
• What is the current planning status for development on the land? Will an application for a change of use need to be made and how likely is this to be successful?
• How long has the site been on the market?
• How many local people will be employed on the new site?
• What are the previous uses of the land and is it likely to be contaminated?

Leasing commercial property

• Is there a rent free period available?
• Is some form of refurbishment necessary?
• What is the service charge?
• Is the rent fair and how much room is there for negotiation?
• Has there been any difficulty letting the property and how will this affect discussions?
• What is the exact square footage?
• Request a draft lease and get legal advice.

Negotiate rental and lease terms to provide the best possible deal for the business. Measure the premises in accordance with recognised codes of measuring practice to confirm the floor area, so that rent, rates and service charge payments can be accurately calculated. Get competitive quotes for, and then arrange, structural surveys. If necessary, go back to the landlord and re-negotiate terms if there are any problems. Be sure to talk regularly to the company's solicitors to make certain the legal documentation is moving swiftly and, if necessary, to enlist their help when re-negotiating terms.

Buying leasehold and freehold commercial property

Leases contain clauses affecting many aspects of ownership so it's vital to get professional advice from a solicitor or licensed conveyancer.

• Who is the owner and what's a realistic guide price from which negotiations can begin?
• What are the responsibilities associated with the unit?
• Make arrangements for structural surveys.
• How is value likely to change in future years?
• Are there development plans nearby that may have an effect on the property?
• Is there sufficient space in the unit, or nearby, to cater for future growth?

Instruct the company solicitor to make an offer. Don't sign anything before discussing it with a solicitor experienced in dealing with such transactions. They will be best able to negotiate the terms with the sellers' solicitor and will handle the exchange of contracts. Completion normally happens a few weeks later, at which point legal ownership is passed over. Each transaction is different, but it makes sense to allow 10 weeks for the complete process, from initially instructing a solicitor to actual completion.