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What Fees Do You Pay When Selling A Commercial Property?

Property Saviour » Commercial Property » What Fees Do You Pay When Selling A Commercial Property?

When selling a commercial property, it is essential to understand the various fees that become payable. These fees can significantly eat into your profit margins.

Here is a comprehensive guide to the fees you can expect to pay when selling a commercial property.

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Commercial Agent Fees

Commercial agents play a vital role in selling your property, but their services come at a cost. The fees charged by commercial agents typically range from 1% to 3% of the property value.

For example, if your property sells for £500,000, you can expect to pay between £5,000 and £15,000 in agent fees.

Solicitor Fees

Solicitor fees are another significant expense when selling a commercial property. These fees cover the legal aspects of the sale, including conveyancing and preparing the necessary documents.

Solicitor fees can range from £1,250 to £2,500, depending on the transaction’s complexity and the property’s location.

Mortgage Redemption Fee

If you have a mortgage on the property, you may need to pay a mortgage redemption fee to settle the outstanding balance. This fee can vary depending on the lender and the terms of your mortgage.

What fees do you pay when selling a commercial property
You will also need to consider the cost of removing any equipment, furniture, or other items that are not included in the sale.

Removal Costs

You will also need to consider the cost of removing any equipment, furniture, or other items that are not included in the sale. These costs can vary depending on the type and quantity of items to be removed.

Capital Gains Tax

Capital Gains Tax (CGT) is a significant consideration when selling a commercial property. CGT is payable on any profit made from the sale, and the rate will depend on your individual circumstances. It is essential to consult with a tax advisor to understand your CGT liability.

Hidden Fees

Other fees you may need to pay when selling a commercial property include:

  • Energy Performance Certificate (EPC) fees
  • Asbestos survey fees
  • Fire Risk Assessment fees
  • Health and Safety record fees
  • Filing VAT return
  • Capital allowances information.
  • Management pack from the freeholder if you own a leasehold commercial property.

How do I choose the right commercial agent for my property?

When selecting a commercial agent, consider their experience in selling properties similar to yours, their knowledge of the local market, and their fees. It is also essential to check their accreditation with reputable organisations like the Royal Institution of Chartered Surveyors.

Can I sell my commercial property quickly without using an agent?

Yes, you can sell your commercial property quickly without using an agent by using a professional commercial property buyer.

If we have not put you off from selling your commercial property, then we’d love to buy it for cash.

Find out why landlords prefer selling their commercial property fast, having tried to sell via an agent.  Get in touch today to see how we can help.

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