How Does Commercial Conveyancing Differ From Residential Conveyancing?

Commercial property law and residential property law are two highly complex fields, which often require an expert in the field to help you navigate. Whilst both concern the buying, selling and leasing of a property, there are key differences when it comes to residential and commercial property law.

Join Andrew Lee Property Lawyers as we explore how commercial and residential conveyancing differs.

Property Types & Purpose

Residential conveyancing involves the transfer of ownership for residential properties, such as homes, flats, or apartments, which are typically intended for private use. Commercial conveyancing involves the sale, purchase, or leasing of commercial properties such as office buildings, retail units, industrial warehouses, or other business-related properties.

Legal Complexity

Commercial conveyancing is generally more complex because it involves considerations that aren't present in residential transactions, such as zoning laws and land use, business-specific regulations (licences, environmental issues) and commercial leases with more detailed terms (rent reviews, break clauses).

Residential conveyancing can be less complex, as the transactions primarily focus on the legal aspects of the property title, conditions, and rights. The contract terms are simpler, with fewer regulations involved.

Tax Implications

Commercial properties are subject to different tax laws, including VAT, capital allowances, and business rates. The transfer of a commercial property may also attract Stamp Duty Land Tax (SDLT) at a higher rate than residential property. Residential transactions also incur Stamp Duty Land Tax (SDLT) but typically at lower rates, and there may be exemptions or reductions available (such as first-time buyer relief).

Finance & Funding

For commercial conveyancing, financing is usually more complex, often involving business loans, mortgages with higher rates, or funding through institutional investors. Lenders will also evaluate the potential income-generating capacity of the property.

In residential conveyancing, the majority of financing comes from residential mortgages, which tend to have lower interest rates and simpler terms. The main consideration for lenders is the value of the property itself, with less concern for income potential.

Timeframe

Residential conveyancing is generally faster, often completed within a few weeks, as it involves fewer negotiations and less detailed investigation into the property. Commercial conveyancing tends to take longer because of the complexities involved, such as the negotiation of leases, review of financial arrangements, and more rigorous due diligence.

Your Trusted Commercial Property Solicitors

Here at Andrew Lee Property Lawyers, we are proud to offer solicitors to assist in both commercial property law and residential property law across South East England. Whether you are selling, buying or leasing a property, our team is on hand to help you through the entire process.

Our expert team will help to handle all legal paperwork and documentation, to ensure everything is completed swiftly and to your timeline. In terms of commercial conveyancing, we can work with investors, developers and landlords to assist you with specialist conveyancing services.

If you are in need of commercial property solicitors you can rely on, feel free to contact us today to find out how we can help.