First Time Buyer Commercial Property
Taking on a commercial mortgage is a big commitment. The decision to purchase your commercial property as a first-time buyer should not be taken lightly and will depend on several variables, including the financial position of the company.
The idea of purchasing a commercial property can be quite an intimidating thought, especially if you are a first-time buyer. At Anglo Law, we have a specialised Commercial Property team who are friendly, approachable and experienced. We can offer advice on what you need to do before starting your search for the perfect commercial property.
There are certainly a number of advantages to owning your business property. If you own your premises, then you have greater freedom to use it in a manner that’s best suited to your business purpose. This means you can make alterations and repairs as you wish, unlike in a rented property, which is likely to be quite restricted in what you can do.
Free Initial Consultation
We understand that you’ll want to discuss your options and find out more about how we can help. We offer both appointments throughout the day and out of hours to accommodate our clients. We are happy to meet you at our offices across London, Essex or Kent. To find out more please Book Your Free Consultation, call us on 020 3753 4667 or email
Location
The right location is paramount for your commercial premises and you should research as much as you would when buying your own home. Will you be holding regular meetings with clients on the premises or working remotely? Will you be employing a sizeable number of staff who will require a large premise?
Interest Rates
Although interest rates will not stay at their present level forever, they are still competitive enough to make a mortgage an attractive option. If you do decide to invest, there is another major benefit; you can deduct the tax from interest payments on commercial mortgages.
It is advised to only invest in commercial premises if your business is reasonably well-established with solid growth potential.
Survey
Make sure that you have a full professional survey carried out before proceeding with the purchase. Don’t rely on the more basic survey that your mortgage lender is likely to require. A survey is always a wise precaution.
Budget Ahead
Remember to budget for the maintenance of the property. As the owner of commercial property, you will incur long-term upkeep and any ongoing costs.
Research the Market
Take property price predictions into consideration. What are the long-term predictions for your area which will impact future property prices? A fall in the value of your commercial property would deplete your business capital, so be cautious of over-stretching yourself.
Sub-letting
Depending on your circumstances, you may be able to sublet part of the property and become a landlord to lessen your monthly repayments. Alternatively, you might decide to move in the future but let this property instead of selling for an extra revenue stream.
Costs of a Commercial Mortgage
The first large payment you need to factor in is a deposit, mortgage-lenders are likely to ask for a deposit of 25% or more of the value of the property. Lenders may also ask to see a detailed long-term business plan.
You may also face other costs associated with your mortgage deal. It’s advisable to use a surveyor which will incur a cost. Stamp Duty Land Tax (SDLT) is payable on most commercial properties, as it applies to any business premises or land valued at over £150,000.
Purchasing a commercial property is an enormous decision that will impact your business’ finances in a number of ways. Before taking out a commercial mortgage, it’s advisable to familiarise yourself with all the costs to ensure you’re making the most well-informed decision.
For more information or for help about your specific circumstances it is vital you seek professional advice from our experienced commercial property solicitors.
Contact our Commercial Property Solicitors
The right solicitor changes everything. Anglo Law Solicitors provides expert legal advice on Commercial property.
Speak directly to a property solicitor now on 020 3753 4667 or Book Your Free Consultation here.
We serve clients across the following areas
London areas - City of London, Aldgate, Tower Hamlets, Spitalfields, Westminster, Kensington & Chelsea, Southwark, Bishopsgate, Canary Wharf, Islington & Highbury, Angel, Belsize Park, Hampstead, Swiss Cottage, Finchley.
Essex - Chigwell, Hainult, Woodford, Epping, Chafford Hundred, Chelmsford, Brentwood, Upminster, Grays.
Kent - Tunbridge Wells, Tonbridge, West Malling, Maidstone, Sevenoaks.