Last Updated on 6.7.16 by Claire Beaumont
In the UK, a sizeable chunk of property is used for commercial reasons. According to the British Property Federation, the total value of commercial property is worth £683 billion with the majority of buildings being used for offices, retail, leisure and industrial usage.
The steps associated with buying a commercial property are somewhat similar to those involved when buying a residential property.
When buying a commercial or residential property you must:
- Find your desired property
- Put down a deposit
- Arrange for a mortgage (in the majority of cases)
- Utilise the expertise of an estate agent and a solicitor
- Pay stamp duty land tax over a certain threshold (commercial property >£150,000)
There are then the additional costs associated with buying and owning a commercial property that must be considered for your business to thrive. It is integral to assess these carefully to make sure that your investment is worthwhile.
You will want to consider:
- Business rates (exemptions such as small business relief and rural rate relief are available)
- Decorating, repairs and maintenance of the building
- Necessary equipment and furniture
- Local authority charges
- Mortgage repayments (if they apply)
- VAT considerations
- Planning consents if you want to redevelop
If you aren’t buying the commercial property with cash, then a commercial mortgage is the most common form of finance. There are lots of deals out there and a variety of lending sources, so do your homework to get the best deal. You may also want to consider using the expertise of a commercial property broker to give you more of an insight. Once this aspect has been completed you are then in the position to put in an offer on the property of your choice.
After your Commercial Property offer has been accepted
Once you have had your offer on a commercial property accepted, it is time to instruct a solicitor to complete all the legal necessities. A specialist commercial property solicitor will draft the sale agreement with all the main points, otherwise known as the heads of terms. After the survey of the building has been done, and everything is hopefully fine, both parties are happy with the contract and the finances have been agreed; contracts can be exchanged.
This is when, legally speaking, the commercial property transfers from one owner to the new one.
Using an expert Commercial Property solicitor
Buying or selling a commercial property needs to be done correctly. For this reason, you want to ensure you instruct a real estate expert who fully understands the processes at hand and what is required to ensure a smooth transaction takes place.
Our commercial property solicitors at Gorvins are experienced, approachable and highly skilled in their field. Call us today on 0161 930 5151 to seek the legal advice you need and discuss buying, selling or leasing a commercial property. You can also contact us by emailing firstname.lastname@example.org or online.