In part one, our comprehensive guide to buying commercial property focused on what you will have to consider about a property before buying it. In part two, the focus will be on the money factor and the steps you need to take once you have decided on the property you wish to buy.
Costs and Budget
Budgeting is obviously important, no matter if you are a first-time buyer or well versed in the art. After all, buying a property which quickly exceeds the limit of your budget can have huge repercussions for both yourself and your business. Ensure that your deposit and loan potential, match what you can afford to pay back on a monthly basis, at the very least.
There are also several other costs which you must consider before delving into a commercial property purchase:
- Advice – you will need the assistance of a solicitor, lender and property agent throughout the buying process and their fees are an additional cost.
- VAT – some commercial properties fall subject to VAT.
- Stamp Duty Land Tax – the threshold for this tax on properties in England, Wales and Northern Ireland is currently £150,000.
- Moving Fees – moving furniture and other supplies from one property to another will need to be accounted for.
- Set Up Fees – installing equipment, phone lines and other essentials into the space could be an additional hefty cost.
A good Property Agent should be able to assist you in ALL of these matters.
All ongoing costs such as heating, maintenance and even internet will also need to be accounted for each month. You need to carefully consider the ongoing costs of a commercial property prior to purchasing, to ensure it is something you can afford.
The Actual Purchase
Once you have considered costs and actually found a property to buy, the next stage of the process can begin. Namely, putting in the offer and actually making a purchase. This needs to be a written offer to the vendor’s commercial estate agent.
A vendor may refuse your offer, but it is always worth negotiating as you may be able to reach a mutually acceptable offer eventually. Your price is not the only factor the vendor has to consider, but also the speed that you can complete the purchase. So putting that forward as a fast process may also make the deal more appealing.
Once an offer is accepted you should request the property is removed from the market, as it is best to avoid another potential buyer from outbidding you in the late stages.
To complete the process, you must consult a solicitor in order to negotiate the final details of the contract. Following this a survey of the property will need to take place, this is simply to ensure the structure is sound and that there are no major flaws which you will need to address.
As soon as the paperwork is complete, signed and delivered, you will need to send the remainder of the purchase price to the vendor’s solicitor. With that, you will receive the keys and congratulations, you now officially own your first commercial property.
But, if you are not finding the process as simple as that, then don’t hesitate to contact our team of experienced property agents. Either via the contact form or by calling 0161 830 7475 for a confidential conversation about your commercial property needs in a free property consultation.