Buying business property
Introduction
Businesses often rent their premises, but in some cases, it can be more cost-effective to buy commercial property instead.
Why consider buying commercial property?
- You might choose to buy business premises if you want to run a commercial unit and also live in part of the property.
- You believe future increases in property value could offer a strong long-term investment.
- You want stability and peace of mind, without worrying about lease renewals or large rent rises.
However, business property comes with challenges you may not face when renting commercial property. Finding commercial property for sale with vacant possession can be difficult, and commercial mortgages usually run over shorter terms than residential mortgages, so monthly repayments can be higher than rent. There is also a risk that the value of the property may fall over time, so it is important to weigh up your options carefully and seek professional financial and legal advice before committing.
Hybrid working impact on premises need
The COVID-19 pandemic required many businesses to support staff working from home, and since then, some have adopted long-term hybrid working models. In a hybrid workplace, employees split their time between home and the office, which can significantly affect how much space a business needs. Before buying commercial premises, consider whether your staff will continue to work remotely and whether a smaller, more flexible space could better match your future requirements.
What this buying business property guide covers
If you decide to explore buying business premises, you should understand all the associated costs and legal steps involved. This guide explains:
- the full costs of buying business property, including deposits, professional fees, taxes, and ongoing costs
- what to consider before you make an offer to buy a business property
- how and when to use a surveyor to assess the condition and value of the property
- how a solicitor can help you review contracts, complete legal checks, and conclude the sale