How To Choose The Right Commercial Property Solicitor

It is important to be aware before you start the process of purchasing commercial property that it can be a long and drawn out affair. Arranging commercial mortgages, instructing surveyors and managing the often complex and expensive legal work can put real strains on first time property purchasers.

To make this easier, finding a solicitor that you can depend on and more importantly, trust should be at the top of any list of priorities when it comes to purchasing commercial property. The minefield of legal red tape can be complex and confusing at times, so we've assembled a quick guide that should give you a solid plan of action on how to tackle the legal issues.

Regulation: Solicitors are regulated by the Solicitors Regulatory Authority. So, when choosing a solicitor, make sure that they are correctly regulated and correctly insured. Failure to do so may mean that you have no recourse should problems arise after completion which the solicitor should have dealt with. Finding a correctly regulated solicitor will give you the peace of mind you need.

It's All About Location: Going for a renowned law firm based in The City is not always the best option, if anything hiring a local, smaller law firm could be the wiser strategy. A local firm will have much more experience and better local knowledge than a national or international firm, they will know which searches and databases to check and search and any miscellaneous issues you might not have been aware of. They'll probably be a lot cheaper than larger national law firm as well!

Expense: Value for money is a priority in these difficult economic times but often going for the cheapest deal is a false economy. As with so many things in life, you normally get exactly what you pay for, a slightly more expensive solicitor is probably more likely to be able to live up to your expectations of good service than a bargain basement one.

Legal costs can vary extensively, between several hundred and a few thousand pounds. This of course depends on the type of property that is being purchased, it size, value and purpose. There are extra costs that a solicitor will also charge for, including local searches and VAT.

With this in mind, it's 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: Appointing a solicitor with experience can make a huge difference to the smooth progression of your purchase. So, ask solicitors what specific experience they have dealing with the type of property that you are buying. If they haven't dealt with that type of property before, consider finding a solicitor who has.

If it's a medium to large firm of solicitors, make sure you ask who you'll 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're actually getting to avoid confusion down the line and that the service arrangements are clear for both parties.

Choosing a commercial mortgage solicitor is just like choosing a commercial mortgage lender. There are dozens out there and searching the market and doing your research before settling on one firm is essential for the best service you can obtain.