A Guide To Choosing A Commercial Property Solicitor

Buying a commercial mortgage is a complex and time consuming process, every stage takes longer than a residential mortgage as there are many more factors to take into account. For this reason alone the most important thing to getting a commercial mortgage right is getting the right solicitor.

So it could be argued it is of the most vital importance you hire the correct solicitor, one who you feel is trustworthy, knows what they are talking about and seems capable of getting the task done. We have put together a quick introductory guide below to help you identify such a person with the qualities needed.

Regulation: You do not want to be stuck with a 'Lionel Hutz' type solicitor, so always hire a solicitor who is regulated by the Solicitors Regulatory Authority (SRA). SRA members will be fully and properly insured so you as a client will be protected if anything slips through the cracks during the legal process. Plus by being regulated through the SRA you have an avenue to take action should your chosen solicitor not act or behave in the proper way during the transaction.

Locals: While you might feel more important and reassured having a large national or international law firm representing you, they are very rarely the best choice. Turning to a smaller, local practice will mean you have solicitors who are very experienced in the local property market, they will know which searches to do, local rates and bye laws to be aware of and know the regions property market inside out. They will see all the problems two steps ahead as they know the area better than any big name law firm ever could, no matter how brilliant the solicitor could be.

Cost: With many things in life, you get what you pay for. So, whilst it is clearly important that you find a solicitor within your budget, simply hiring the cheapest option may not be the best course of action. Speak to several solicitors to find out what you get for your fee and pick one that is the best value for money; not just the cheapest.

Solicitors' fees can vary from a few hundred to several thousand pounds. They also often charge 'disbursements' including VAT and local searches. Speak to several forms about the specific property you are buying to determine what fees would be applicable.

With this in mind, it is best to be crystal clear on a solicitor's payment structure as it can vary with every firm you approach. Some will take a fixed fee, per hour or a commission at the end of the transaction that is usually 1 3% of the mortgage value. A solicitor is obliged to offer an estimate of what their services will cost; if they begin charging over the initial estimate you are well within your right to challenge them. So always make sure the costs and estimates are down on paper to avoid arguments at mortgage completion.

Experience is Key: As we touched on before, experience is key, not just in the local area and region, but as a solicitor in general. Many specialise in certain deals and areas so always ask what they have specialised in and about any extra qualifications they might have. On top of this, years as a solicitor, how many commercial mortgages have they done recently or in the past and ask if they are accredited with the Law Society.

If it is a medium to large firm of solicitors, make sure you ask who you will be dealing with most of the time, will it be the less experienced junior partner or the guy running the show. When you meet the solicitor it could be the head of the firm/department who then will just assign the case out, so double check who you are actually getting to avoid confusion down the line and that the service arrangements are clear for both parties.

There is never a shortage of commercial property solicitors and many commercial mortgage firms will have recommendations for you. Taking the time to find who is right for you should be a top priority as it is possible this will be the most expensive part of the mortgage to handle, (outside of the deposit of course!)