Whether you are buying, leasing or investing in commercial property, property searches are a vital part of the due diligence process. They can uncover issues that may affect a property’s value, use, development potential or result in unexpected costs, helping you make informed decisions before committing to a transaction.
Our Commercial Property team regularly advises buyers, tenants, investors and developers on the searches and investigations that may be required as part of a commercial property transaction, helping to identify potential issues at an early stage.
What are standard commercial property searches?
Commercial property searches are designed to identify legal, environmental and practical issues that could affect a property, by searching public records. They do not assess the physical condition of a property, which would usually require a survey or inspection. The searches required will depend on the nature of the property and transaction, but several are commonly recommended as part of the conveyancing process.
Local Authority Search
A Local Authority Search provides information held by the relevant local authority about the property.
It can reveal:
- Planning permissions and building regulation approvals
- Local land charges registered against the property by the local authority (rather than private charges such as mortgages or rent charges, which would be revealed on the property title)
- Whether adjoining roads are publicly maintained
- Conservation area or listed building status
- Local land designations and development proposals
- Proposed road or rail schemes
A standard search does not usually provide information about nearby properties or surrounding planning applications, although additional searches may be available where this is important.
Environmental search
An environmental search assesses potential environmental risks associated with a property, including contamination and flooding.
This desktop search is based on historical and environmental data and does not involve a physical site inspection. Instead, it identifies whether past or current uses of the land may indicate contamination risks.
Environmental issues can affect:
- Potential liability for clean-up costs
- Property value
- Mortgageability
- Future saleability
- Development potential
Where significant concerns are identified, further investigations by environmental specialists may be required before proceeding.
Water and drainage search
A water and drainage search confirms if the property connects to public water and sewerage infrastructure.
The search typically confirms:
- Whether the property is connected to mains water
- Whether foul and surface water drain into public sewers
- The location of public sewers within the property boundary
- Whether the water supply is metered
- The relevant water authority
This information can be particularly important for properties with development potential.
Coal mining search
Where a property is located in a mining area, a coal mining search may be advisable.
It can identify:
- Historic mining activity
- Planned future mining operations
- Mine shafts near the property
- Previous subsidence claims
Mining-related risks can affect land stability and may impact both value and future development plans.
Chancel repair liability search
Chancel repair liability is a historic obligation that can require some landowners to contribute towards the repair of a parish church chancel.
Although claims are relatively rare, liability can still affect certain properties. Where a potential risk is identified, indemnity insurance can often provide protection at a relatively low cost.
Highways search
A Highways Search confirms whether the property benefits from direct access to a publicly maintained highway.
It can also identify whether any third-party land sits between the property and the road, which could create access issues or affect future development plans.
Planning search
If proposed developments in the surrounding area are a concern, a planning search can provide a broader picture than a standard Local Authority Search.
It may reveal planning applications submitted within a specified radius of the property, helping buyers understand proposed developments in the surrounding area at the date of the search.
Utilities search
A Utilities Search provides information about key services serving the property, including:
- Gas and electricity supplies
- Telecommunications infrastructure
- Utility providers
- Potential service constraints affecting the site
This can be particularly valuable for businesses or developers that require significant utility capacity.
Are there any additional searches to consider?
Depending on the property’s location and intended use, further bespoke searches may be recommended.
These may cover issues such as:
- Watercourses and drainage concerns
- Oil and gas exploration
- Fracking activity
- HS2 or other major infrastructure projects
- Wind farm developments
- Common land registrations
The appropriate searches will depend on the specific risks or concerns associated with the property and surrounding area.
How long do commercial property searches take?
Search times vary depending on the local authority and the type of search being undertaken.
In many cases, results are returned within a few weeks, although timescales can vary from one authority to another.
How much do commercial property searches cost?
Costs will depend on the type and number of searches required.
As a general guide, a standard package of commercial property searches will often cost between £750 and £1,100 plus VAT, although additional or specialist searches may increase the overall cost.
Which searches are right for your property?
Commercial property searches are designed to identify risks before you become legally committed to a transaction. While some searches may be required by lenders, they can provide valuable insight for buyers, investors and tenants alike.
Obtaining the right searches early can help avoid unexpected liabilities, support negotiations and highlight issues that may require further enquiries or inspections.
As every commercial property is different, the searches required will vary depending on the location, nature of the property and future plans for the site.
Our expert team advises buyers, tenants, investors and developers on a wide range of transactions and can help determine which searches and enquiries may be appropriate for your circumstances.
Get In Touch
Helen Marsh is a Partner in our Commercial Property team. She has over 20 years’ experience in commercial property and has earned a reputation for her expertise in landlord and tenant work in the hospitality, retail, office and warehouse sectors, acting for known brands with 200+ stores to entrepreneurs taking on their first site.
If you’re looking to understand more about your legal position, contact one of our expert commercial property solicitors today on 0330 111 3131 or via our online enquiry form.
This article is for information only and does not constitute legal advice. We recommend seeking professional advice before taking any action on the information provided. If you would like to discuss your specific circumstances, please feel free to contact us on 0330 111 3131.