Buying business property

When you find suitable business premises, you should compare prices, make a conditional offer, secure a lockout agreement, and confirm your finance before committing to buy.

Before you make an offer to buy

• Compare the asking price with similar commercial properties in the local area to check that it is fair.
• Only proceed if the price, location, size, and condition fit your business needs and budget.

Making a conditional offer to buy

• Receiving a satisfactory building survey report.
• Being able to raise the necessary finances to complete the purchase of the property.
• Getting planning permission for any changes or alterations you intend to make

The property agent must pass your offer to the vendor. If the seller is happy with the price, they can accept; if not, you may negotiate until you reach an agreed figure or walk away.

Lockout agreements

Once your offer is accepted, ask for a lockout agreement. This normally means the agent will stop actively marketing the property and will not negotiate with other buyers during an agreed period. However, if another offer is received, the agent is usually still required to inform the vendor. In return for the lockout, you agree to progress the purchase promptly, arrange all necessary checks and surveys, and work on securing finance.

Confirming your finances to purchase

If you need a commercial mortgage, you should:

• Apply early and obtain a written mortgage offer from your lender before you legally commit to the purchase.
• Check how much the lender is willing to provide and what security they require, and make sure repayments are affordable for your business.

See commercial mortgages and lenders.

Get professional advice

It is wise to take professional financial advice when buying commercial property. An adviser can help you assess affordability, compare finance options, and understand all the risks and obligations before you proceed. See expert financial advice.