What You Need to Know When Buying a Commercial Property for Your Business
- Written by News Feature Team
When you buy a commercial property, you go through many of the same processes you do when you purchase a residential one. You’ll find a suitable premises and put in an offer, then, once it’s accepted, you go through all the legalities before exchanging and completing. But there are a number of additional factors to consider when you’re buying a property for your business.
Unlike high-street estate agents who appear in most towns, commercial agents are a little scarcer and you won’t find as many commercial properties in your standard property searches. But there are specialist agents like GVA Worldwide who can help you to find the right business premises for your company.
Finding a Property
There are a number of things you’ll need to consider when you purchase a commercial property, including the type of property (industrial, leisure, offices or retail); the type of investment (leasehold or freehold); the size and its location.
You’ll also need to think about how the property’s going to meet your business needs. Things to look out for are good transport links, parking restrictions and facilities, delivery facilities and restrictions, local amenities for employees, the pool of talent in the area, facilities within the building and whether it’s going to give off the right impression to your clients or customers.
Considering the Costs
When you buy a commercial property, you’ll often have to place a deposit down to secure it. Then, when the deal completes, you’ll pay the remaining amount. But there are some other costs that you’ll also need to account for.
For example, you’ll need to make allowances for Stamp Duty Land Tax, which will need paying on any commercial property that’s worth £150,000 or more in England, Wales and Northern Ireland. In Scotland, this is Land and Buildings Transaction Tax instead. And don’t forget that some commercial properties will be subject to VAT and there may some fees associated with getting a mortgage on a commercial premises.
Finally, calculate the costs involved in refurbishing and decorating the property, fitting out the space with equipment and furniture, moving from your existing premises and setting up all your facilities, e.g. IT equipment.
It’s also worth making a note of the ongoing costs you’ll face too, such as insurance bills; maintenance and repair; service charges (e.g. cleaners) and local authority charges. Knowing the ins and outs of what’s involved before you go ahead and purchase a commercial building will help to make sure this move’s the right one for your business.