Finding the right property for your business is equally as complex, or even more so, as finding your dream home, so it is important to get it right. Commercial property can seem like a bit of a minefield, but as long as businesses think about their core needs, they won’t go far wrong.
Buying or indeed renting a commercial property is one of the biggest outlays of funds that your business will have, so there are a large numbers of questions that you should ask before you even consider making a purchase or indeed signing a lease.
Finding the right commercial property is actually easier than you might think, and there are a number of ways to do it.
Commercial property solicitors or chartered surveyors can provide further advice on whether a property is suitable for your business.
If you’re purchasing a new commercial property, then it is important to find the right mortgage deal to support the needs of your business and work within the financial restraints set in place. When finding your mortgage, your lender will ask for the following information for your business.
Generally, commercial mortgages run between 1 and 15 years, but they can be up to 30 years in length. We recommend paying a higher deposit, as this will be reflected in the interest rate that you pay.
Much like domestic properties, Stamp Duty Land Tax on commercial properties is charged at different rates at certain thresholds, as illustrated below.
Up to £150,000 (if the property is let out and the annual rent is less than £1,000) – 0%
Up to £150,000 (if the property is let out and the annual rent is less than £1,000) – 1%
£150,000 to £250,000 – 1%
£250,000 to £500,000 – 3%
Over £500,000 – 4%
SDLT is not payable if.
When choosing your property, it is important to factor SDLT costs into your budgeting.
Discussing costs, there are a number of factors that you have to take into account when budgeting for a new office building or commercial property. These include.
Purchasing a commercial property is an exciting time for any business, but it is important to ensure that you have done the necessary preparation and organisation. Nicholas Estates have the experience and expertise to help businesses of all sizes find their ideal property, get in touch today.