Costs of buying business property

When you buy commercial premises, you need to budget for one-off purchase costs and ongoing ownership costs.

Upfront costs when buying property

• Professional fees for the surveyor, solicitor, and any other professional advisers involved in the purchase of the property.
• VAT in some cases (if applicable); if your business is VAT-registered, you may be able to reclaim this.
• Stamp Duty Land Tax on the purchase price, where due.
• Search and enquiry fees, for example, local council searches, Companies House checks and Land Registry fees.
• Alterations, fit-out and refurbishment works to make the premises suitable for your business.

Ongoing property ownership costs

As a commercial property owner, you should plan for:

• Business rates are based on the property's value and assessed by Land and Property Services. See how business rates are calculated.
• Commercial property insurance to protect your building and, where needed, your fixtures and fittings.
• Repairs, routine maintenance and general upkeep of the premises.
• Running costs such as electricity, heating, water, cleaning, waste disposal and security services.
• Commercial mortgage repayments: if you finance the purchase with a loan, assess affordability carefully and speak to your bank about how much you can borrow and what security is required.
• Costs of making reasonable adjustments to improve - see disabled access and facilities in business premises.

Energy performance and efficiency

Energy performance directly affects your long-term running costs.

• The seller or builder for the new premises must provide an Energy Performance Certificate (EPC) showing the building’s energy rating and likely energy costs. See EPCs for business properties.
• Heating, boilers and air conditioning systems can significantly impact your energy bills. You can reduce costs by keeping them well-maintained and regularly inspected by qualified engineers.

Air conditioning inspection

If the property has air conditioning, check whether:

• A valid energy assessment already exists and can be handed over by the seller.
• Your systems require a formal energy inspection; inspections are required at least every five years for air conditioning equipment with an output greater than 12kW.

See Air conditioning energy inspections.