Property in the UK represents approximately 8 per cent of the total investment market (by value) and liquidity continues to remain a problem, not helped by the cost and time involved in undertaking transactions. If sellers invest more time at the outset of a transaction and ensure that a property is ready for sale when it goes on the market, this can help all parties adhere to a tight timetable for disposal of the asset.
New guidance is available in the form of Readiness for Sale - A guide for streamlining commercial property transactions, published by the Investment Property Forum.
The guide suggests that sellers should take steps to actively maintain their property portfolio by setting up electronic deal rooms in advance of transactions, preparing a “warts” list, ensure supporting documents such as EPCs, asbestos records and employments contracts are readily available, take time to inspect the property and identify physical defects and assess tax issues including the value of capital allowances and SDLT liabilities. Taking steps like this early on this can help to avoid nasty surprises further down the line and minimise the scope for the sale price being chipped or funding being withdrawn.
Don’t delay – ask your management teams and professional advisers to start following the IPF guide!