What every buyer or tenant needs to know about commercial planning risks

When you walk around a site or view a unit, you can see the layout, condition and potential. What you can’t see are the legal and planning restrictions that may stop you from using the property the way you intend.

Whether you are buying land, investing in a commercial unit, or taking a lease, there are planning risks that only come to light when the legal title and planning history are reviewed. These issues are not visible on the ground, and by the time they surface, you may already be committed.

Here are just a few examples:

1. The current use may be unlawful even if it looks established

A restaurant operating for years may not have permission for restaurant use. You inherit the enforcement risk the day you take ownership or occupation.

2. Hidden planning conditions limiting trade

Even where planning permission exists, it may contain certain conditions such as:

• Restricted opening or delivery hours
• No outdoor seating/no alcohol licence
• Limits of number of occupants or vehicles
• No food preparation/no hot food extraction

These conditions bind the land, not the owner; so they pass to you automatically.

3. No automatic right to change use or redevelop

Even if similar premises nearby have been converted, your site may be caught by:

• Article 4 directions removing permitted development rights
• Conservation area controls
• Listed building status
• Section 106 obligations restricting future development or use

4. You may inherit financial liabilities

A buyer or tenant can unknowingly take on:

• Community Infrastructure Levy (CIL) charges
• Breach of planning enforcement notices
• Unfulfilled planning obligations dating back year

If you exchange contracts or sign a lease before checking the planning position, you may:

• Be unable to use the property for the purpose you intended
• Have to spend time and money securing retrospective consent
• Face enforcement action or forced disclosure
• See the value of the investment drop overnight

Commercial Property experts

We regularly act for developers, commercial tenants and buyers to identify planning risks before they become expensive problems. If you are considering taking a lease, buying a site, or investing in property, get in touch with our Commercial Property team.