Commercial property accounts for around 13% of the value of all buildings across the UK with the majority of the commercial property sector is made up Offices, Retail, Industrial
and Leisure. If you’re looking to buy commercial property, our practical guide will help you every step of the way.
1. Find a property
• look at the trends in the local and national commercial property market
• location and building type are also key factors when it comes to deciding which commercial property to buy
• how will the commercial property will suit business needs, be it yours or a tenant’s?
• make sure that any business carried out in the commercial property you plan to buy is in line with its planning use
2. Work out the costs
• The deposit needed
• Other buying costs – e.g stamp duty and VAT
• Ongoing costs – e.g Insurance, services and business rates
3. Secure a business mortgage
There are a range of lending sources. You should look across the market to compare mortgages and secure the best deal. Lenders require a significant amount of information before agreeing a commercial mortgage. They will typically ask you for a range of details, which might include a business plan, commercial mortgage repayment proposal and business bank statements and accounts.
4. Exchange & complete
Once an offer has been accepted, you will need the legal expertise of a solicitor. They will prepare a document detailing the main points of the sale agreement – It is called the heads of terms.
Contracts will be exchanged when:
• both parties are satisfied with the contract
• you are happy with the state of the commercial property
• the finance to do the deal has been raised
The deal will complete when the formal documents are signed, dated and delivered. Your solicitor will hand over the remainder of the purchase price to the seller’s solicitor, and you will receive the keys to your new commercial property.
Please contact Sarah in our commercial department for advice on any Commercial matter. Call her on 01282 415111
Articles and materials from the Petty Real website and newsletter are provided for informational purposes. Petty Real are not responsible for the accuracy, legality or content of any external sources referenced on this website. The information provided is for general information purposes only and you should not reply upon the material or information as a basis for making any business, financial or legal decisions.
