What factors to consider when purchasing commercial property
Purchasing commercial property can be a shrewd move for businesses looking to make savings on property leases. With such leases typically being between 10 and 20 years and with commercial property rates increasing, buying commercial property can also be a lucrative move for investors.
If you are thinking about investing in commercial property there are certain factors to consider to help maximise your commercial property rental yield.
Location, location, location
Similar to buying a residential property or making a buy-to-let investment, the location of the premises should be carefully considered. Generally speaking, commercial property such as offices and workshops that are closer to town centres and within easy access to motorways, train stations and other transport links, will be more desirable for businesses to lease out.
Size and purpose
Commercial premises vary tremendously in terms of their size and purpose. What size of commercial property you require will be determined on what you intend to use it for. As will the type of property you require and whether you need a shop, office, warehouse and so on.
Leasehold or freehold?
Before purchasing commercial premises, you should also consider whether the property is leasehold or freehold. If a commercial property is freehold, you will own both the building and the land is sits on. If the property is leasehold, you will own the leasehold for a fixed period and will be subject to a contract with the owner of the freehold.
Have a survey done on the premises
Just because you aren’t purchasing a residential property doesn’t mean you shouldn’t get a survey done on a commercial building. Before proceeding with the purchase of the commercial premises, get a full professional survey carried out.
A building survey will provide a detailed report about the condition of the property, offering advice on issues that may require attention and may affect the ability to borrow for the commercial premises.
If you are looking to purchase commercial property in London or the south east, get in touch with Stilring Ackroyd Commercial, providers of complete property solutions, including the buying, selling and letting out of commercial property.