How much is it going to cost to move ?

As investing in buy-to-let properties has become increasingly expensive, property investors are looking at commercial properties instead, particularly for their own businesses. While the benefits can be numerous, if you’re thinking about investing in commercial property, you need to think carefully before proceeding.

Commercial Property Retail Studio

There are multiple commercial opportunities available to buyers. These include retail, leisure, industrial and office spaces. It’s best to create a brief of what you’re expectations and needs are (for instance, the amount of space needed, whether your looking for a freehold or leasehold property, as well as the location that suits you best) before you explore the avenues available to you.

Owning your business space does provide you with more freedom than you get from a rental property. Not needing to wait for your landlord’s permission or for the property management service to book in repairs means that you can really crack on with the jobs you want to get finished. Moreover, if you manage to get on a fixed rate mortgage, you won’t have to be at the mercy of your landlord’s rental increases.

The costs incurred in investing are numerous, and you need to take into consideration the following to work out whether it is the right business decision for you:

Stamp Duty Land Tax

Most commercial estate agents will charge you between 1.5%-3% of the agreed sale price.

Commercial Estate Agents

There are multiple commercial opportunities available to buyers. These include retail, leisure, industrial and office spaces. It’s best to create a brief of what you’re expectations and needs are (for instance, the amount of space needed, whether your looking for a freehold or leasehold property, as well as the location that suits you best) before you explore the avenues available to you.

Mortgage Fees

A mortgage lender will charge you a fee for finding the most competitively-priced mortgage rate for you, with some lenders charging as little as 1%.

Solicitor Fees

Solicitors will normally offer a fixed-price rate for their services, and you will have to add on charges for authority, drainage, local authority and environmental searches on top of these.

Land Registry Fees

The Land Registry will charge you anything from £40-910 dependent on the property price for freehold and registered leases.

Miscellaneous Fees

Once you’ve bought your property, you’ll need to factor in extra charges including moving, decorating and refurbishing fees (if applicable). You’ll also need to kit out the office with the right furniture and equipment. You’ll also need to factor in setting up other facilities, such as IT costs.

If you’re interested in investing in commercial property, get in touch with our Commercial department . They have vast experience in retail, industrial and office spaces and can offer advice on how best to utilise commercial property to enhance your investment portfolio.