Buying A Commercial Property?
Feb 18, 2015
What Should I Consider When Buying A Commercial Property?
Whether you are buying a commercial property for your own business or as an investment, there are a number of things you need to consider before you buy. This guide should help you to be clear about your requirements so the property you purchase meets all your needs.
- Location – this is really important in many ways. If you are buying commercial property for your business, it is important that you think about how easy it is for your staff and customers to get to you, whether you have parking available on site and if you rely on footfall traffic, that the property is in the right area for this to happen. If you are looking to rent your commercial property, research the area you are considering and look at prices and location. Also, consider the national trend of a slump in retail property and a surge in office space in big cities.
- How big? – This will always be a difficult decision to make as you don’t want to be huddled in a tiny section of a massive property, however it is important that your business has room to grow into the space you now own. Moving your business is extremely stressful so it is important to take size into account at the beginning.
- Class of Property – the local authority in each area gives a classification to all commercial property, depending on how that property is used and how it is allowed to be used. Be aware of buying a property where you will need to apply for a change of use as this may not go through and you will be stuck with a property that you can use. Some change of use does not need to go through planning, but it is worth checking first.
- Mortgages – taking advice from a specialist financial advisor will help you to make the right mortgage choice. You will need to show a clear business plan and give details of how you plan to repay the loan and over what term. This will include details of your past accounts and profit and loss projections.
- Stamp Duty Land Tax – there are specific rates applied to commercial property and if the value of the property is less than £150, 000 and you rent it out for less than £1,000 a month, there is nothing to pay. In addition, there may be SDLT relief available for your business so it is always worth making enquires to check eligibility.
If you would like to know more about buying a commercial property or you need help with a purchase, please call Christopher Taylor on 01264 325815 or email email@example.com. He can provide you with all the advice you need to make your commercial property purchase a successful venture.
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