Anyone looking to purchase or lease a new premises will need to carry out a pre-acquisition survey to understand the condition of the property and the potential costs involved.
Purchasing or leasing a commercial building is a huge financial responsibility, and it’s important that people enter into agreements with their eyes open to the condition of their property. The cost of repairs to a commercial building can be significantly higher than those of a residential building, and the responsibility can be greater.
In this guide, we’re running through the big questions on pre-acquisition surveys and why your business might need one.
Pre-acquisition surveys are a great tool. They advise potential buyers, tenants and owners on the condition of their property and ensure that all information on the property is laid on the table for all parties.
As an owner, a pre-acquisition survey will help you maximise the value, condition or use of your property and minimise liabilities and ensure you are safeguarded from changing statutory requirements. Conversely, for individuals and businesses wishing to purchase or lease, pre-acquisition surveys provide peace of mind and detail often not found in lender valuation surveys.
For example, a pre-acquisition survey might cover:
There are many benefits of a pre-acquisition survey, these include sharing information, highlighting property issues and protecting both the owner and tenant from financial risk. The key benefits of a pre-acquisition survey are:
As a buyer or owner, having knowledge on the property is important. Property negotiation relies upon knowledge of the facts, and the survey helps to lay those facts out clearly for all parties.
A pre-acquisition survey helps you understand liabilities and therefore reduce their impact in the future. By understanding the weaknesses of the property, you can be clear on responsibilities from the outset and resolve to reduce liabilities and risk.
Lowers financial risk
A survey of your property will provide an estimate on lifecycle costs and highlight any issues that are present. By reporting on any issues such as structural movement and shrinkage and aging issues, all parties are able to lessen their financial risk by understanding what costs are involved in refurbishing the property.
It ensures due diligence
Another key benefit of a pre-acquisition survey is that it helps to ensure due diligence and keep tenants safe in the property. By reporting on statutory issues, the owner and buyer can be aware of any issues with the property that need immediate attention such as asbestos or land contamination issues.
Do you need a pre-acquisition survey? Our surveys and reports have been designed specifically to be accessible and user-friendly, allowing you to understand the findings and advice we provide more easily.
With a visual traffic light system to help you understand the condition of the building, you’ll have a good understanding of the property at hand, whether as an owner or buyer. Contact Sillence Hurn to learn more about the pre-acquisition surveys we undertake.
Sillence Hurn provide a turnkey building surveying and consultancy solution for commercial, retail, industrial and residential building projects.
You can find out more or get in touch at;
Tel: 02380 014786