Commercial Property Searches: What are they and why do you need them?

Purchasing or leasing a commercial property or land can be a daunting task, especially for those who are doing it for the first time.

If you are buying or leasing a commercial property you should ensure you find out as much information as possible about the property/land you are purchasing / leasing.

As with the purchase of residential properties, there are numerous searches you can instruct your solicitor to undertake on your behalf when purchasing or leasing a commercial property.

These searches will reveal important information about the property and its immediate surroundings enabling you to raise any concerns with the seller before you commit to the purchase or lease.

If a commercial mortgage is being used to purchase the property, your lender will require some searches as a minimum, you should check what your lender requires.  If you are a cash buyer, you can decide what, if any searches you’d like to undertake.

We are not legally qualified and always recommend buyers speak with their solicitor about what searches are applicable in each case. It is often better to spend a little extra money upfront to save a lot more money later on.

What are the Different Types of Commercial Property Searches?  

There are many different types of commercial property searches. We have endeavoured to provide explanations for each:

Local Search   

This involves the local authority providing information affecting the property and the surrounding areas. Some of the key information these will identify include:

• Local land charges against the property
• Restrictions on permitted development
• Planning conditions which may interfere with your intended use of the property
• Whether the roads surrounding the property are maintainable at the publics expense
• Are there any proposed traffic or railway schemes in the neighbouring areas?

Highway Search 

A highway search involves checking whether the property abuts the local highway which is maintainable at the publics expense.

Draining & Water Search 

This search will provide information regarding the water and sewage supplies to the property. It will check a number of elements such as where the property’s water comes from and how it enters the property/land, as well as if the drains run through the boundary of your property as this may prevent future extensions being built. It will also highlight if the property is recorded as being at risk from overloaded sewers.

Chancel Check Search 

Although somewhat historic (this dates back hundreds of years to when liabilities were placed on properties to help cover the cost of repairs to churches), a Chancel Check Survey is still necessary and relevant as this will reveal whether the property is situated in a parish which has a potential chancel repair liability. If so, a Chancel Repair Indemnity Insurance Policy should be obtained.

Flood Report 

The flood report is used to examine if a property is situated on or near a land which could be susceptible to flooding. It will detail the risk from the source of the flooding and whether there are current and potential flood risks. This could affect your ability to get the appropriate insurance.

Environmental Search  

An environmental search will assess the property’s risk of contamination. This is called a desk top review in which the search will be made against historic data and maps of the area to rate the likelihood of contamination.

If the search reveals that the land is contaminated and the party who caused or knowingly permitted the contamination cannot be found, then the current owner of the land may be liable to resolve the contamination (Environmental Protection Act 1990).

Coal Mining Search  

The Coal Authority Report will reveal any past, present or future mining and will highlight any environmental and stability risks that may affect the property. It also provides an insight into any subsidence remediation claims, shaft locations, and reported hazards or mine gas emissions.

Additional Searches 

You can also carry out further searches on the property if you wish. These would include searches with gas companies, electrical and telecommunication companies.

As you can see there is quite a lot to consider and important therefore you have a good professional team guiding you throughout the process.

If your business needs help with commercial property, whether that’s with an existing property or finding a new property, we are here to help find the right property and guide you through the process. Please give us a call on 01633 740 740 or email [email protected]