The answer to this question is: yes, you can buy a commercial property with existing tenants and, in fact, there are many benefits in doing so.
What Are The Advantages?
You would, for instance, start receiving rent straight away, without having to search out potential tenants yourself. You would also be able to feel confident in your purchase with the knowledge that, with a sitting tenant, the property should already meet with health and safety requirements, making it less likely that you will need to carry out expensive refurbishments.
There are many other reasons why buying a property with tenants in situ might be tempting, but there are also pitfalls that you need to be wary of. We’ll guide you through the pitfalls and show you why it is necessary that you have a solicitor with good knowledge of conveyancing and commercial lease agreements on your side.
What Are The Disadvantages?
The chances are, given that the tenant is already in the property, that everything is above board and all regulations are being met. There is a risk, however, that it isn’t and with a tenant already in the property it can be difficult for you to ascertain whether everything is in order before you purchase. This means it could end up costing you time and money to bring the property up to standard and if the local authority were to discover the issues before you had a chance to rectify them, you might end up being liable for any fines. You need a good team of commercial property solicitors on your side to ensure that everything is up to scratch before your purchase goes through.
One More Thing…
Another thing that you need to consider before purchasing a commercial property with existing tenants is that their tenancy agreement is still binding despite the change in landlord. If you need to remove the pre-existing tenants for whatever reason, you would still need to follow the often lengthy process that tenancy law requires. Ultimately, you will need a good solicitor to guide you through the process and make it as easy as possible.
If you are looking to buy commercial property, whether it has existing tenants or not, we can help you. We are Lexcel and Conveyancing Quality Scheme accredited, which demonstrates that we really understand the conveyancing processes and we have lots of experience in the field gained right here in the Wisbech and March areas of Cambridgeshire. We will be with you on every step of the process of buying your commercial property and can even help you when it comes to drawing up tenancy agreements. If you are considering purchasing a commercial property, make sure you give us a call today.