Buying Commercial Property

Our commercial property team has the expertise and experience you are looking for to help with your commercial property purchase.  Our efficient process and IT systems enable us to complete your purchase quickly and efficiently and we will respond to your questions without delay. We know time is money and we always aim to be the fastest part of any property chain.

Whether you are buying your first commercial property, moving to bigger premises as your company grows, or building up a portfolio of commercial properties, you need an expert conveyancer by your side.  To help you prepare, here are some helpful pointers to consider.

Before you make the commitment to purchase your commercial property, here are a few things you should consider:

• Have you run the numbers?  It is important to understand how the purchase will benefit your business in terms of profitability and cashflow.  Is your business in a suitable financial position to buy a commercial property?
• Does it meet your business needs?  Is there enough space for your existing team?  Will the premises allow for expansion if your business and workforce grow?
• Is the location suitable for your employees, customers and suppliers to get to?
• Who will buy the property – you, your trading business, a property holding company or even your pension?  Each option has its benefits and drawbacks and it’s a good idea to discuss with your accountant and your solicitor before making a final decision.
• Have you done your research and due diligence?  You should find out as much about the property as possible, to avoid any unpleasant surprises.
• Who will help you with the transaction?  We recommend speaking to your accountant, finance broker, surveyors and solicitors before proceeding with a transaction to ensure everything is in order, both legally and financially.
• Will you have to personally guarantee any finance you are taking out?  Banks often require smaller business owners to guarantee a business mortgage in case the business cannot make the repayments.

Investing in commercial property involves navigating a complex legal landscape. This includes understanding the regulatory framework governing property transactions, leases, and planning permissions. Investors must be aware of their legal obligations, including those related to health and safety, asbestos building regulations, fire safety, electrical safety and environmental legislation.  It’s advisable to seek expert legal advice to ensure compliance and to protect your investment interests.

Commercial mortgages work similarly to residential mortgages, but they tend to come with a higher rate of interest because the property purchase is deemed a higher risk.

When taking out a commercial property loan, we recommend consulting a broker who specialises in commercial property and can review the whole lending market for you.  There are many lenders in the market with a wide range of risk appetites for different types of property and business.  An expert broker will be able to advise you on who to approach for finance to achieve the best outcome for you and your business.

There is no stamp duty (technically Stamp Duty Land Tax) to pay on a commercial property valued under £150,000.  Once the value reaches £150,000, stamp duty is payable on a sliding scale – to find out how much you are likely to pay, visit: Stamp Duty Land Tax: Rates for non-residential and mixed land and property – GOV.UK (www.gov.uk)

Commercial property insurance policies will normally cover the building for risks such as fire, flooding, terrorism, subsidence and more, much like a domestic buildings policy.  It is common for the building owner to insure the building and the business operating from the building to insure their own business risks, although the two can be combined.

There are many insurers in the market and as with any insurance policy it’s very important to understand what the policy covers and doesn’t cover, to ensure you have the most appropriate protection in place.  A good broker can make this process much easier.

If you would like a helpful, downloadable PDF to take away and digest then download our free Guide to Commercial Property – click here.

We have an extremely knowledgeable Commercial Property team who are here to help with your commercial conveyancing. We are transparent with our fees and will happily provide a quotation that will include a detailed explanation of the costs and expenses involved.

As always, our goal is to keep the legal side progressing smoothly and at the high standard you can always expect from Backhouse Solicitors.  We are here to protect your interests at every stage. To discuss your commercial conveyancing requirements, contact us to speak to one of our experts today.

Tel:       01245 893400
Email:  info@backhouse-solicitors.co.uk
Visit:    17 Duke Street, Chelmsford, CM1 1JU
Or send us a message through the Contact Us page on this website.