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Deal or No Deal?

Date Posted: 28 April 2017 Deal or No Deal?

Deal or No Deal?– 5 point checklist

So you are shrewd enough to own a commercial property in an ‘opportunity area’ or property hotspot where the potential residential development value far outstrips its current use. And it is no surprise that there is a steady stream of developers, traders and brokers beating a path to your door, all offering a deal too good to refuse – or is it? Whilst no two situations are identical, here are five issues you should consider before committing :

 1.       Don’t rush in

Don’t feel pressurised to take the first offer which comes along, no matter how tempting. Seemingly attractive proposals can lose you control of your property for a prolonged period and may ultimately end up costing you money. If the party you are treating with are offering a fair deal then they will wait until you have had time to consider your options.

 2.       Do YOUR deal

Not surprisingly many developers will offer you a deal which suits them! Before entering into any detailed negotiations make sure that you are fully armed with the facts – market values, cost of relocation, tax to name but three – you will then be in a better position to dictate the terms which are best for you.

 3.       Know the options (and overages)

There are many ways in which deals may be structured – and each has benefits and drawbacks. These will change depending upon your own circumstances, the planning situation and other external factors. Taking advice from an experienced surveyor at an early stage will help to assess the structure which best fits your own aspirations.

 4.       Shop Around

It is tempting to shake hands with a charming stranger who approaches you and offers what seems an inordinate amount of money for your property. And it is easy – and no agent’s fees to pay! Yet in reality there are very few occasions where a vendor achieves a better price selling privately rather than exploring the market – and this is doubly true in ‘hotspots’ like opportunity areas where developers will often pay a premium to gain a foothold.

 5.       Plan for the future now

Liaising with your financial, legal and property advisers when you first buy business premises should make life a lot easier (and more tax efficient) when you eventually come to sell it. And when that time comes do not be reticent about calling upon their expertise again to ensure you achieve not only the best price, but also the peace of mind that you did the best deal for yourself and your business.

 

Contact: e.dent@hindwoods.co.uk