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Buying commercial property is a huge investment and a first time buyer must prepare and carry out their due diligence as efficiently as possible to enhance their prospects of making a sound investment and maximising rental yield and capital growth. Short term profits can be achieved but are more unlikely; patience is key in securing medium to long term growth.

Early consideration should be given to location and type of property required or desired. It is important to invest your money in an area that is well known to you or that you have researched thoroughly. If you are planning on being an owner occupier your business needs will largely dictate the location. If you are looking to purchase a commercial property to rent to a third party you need to research current achievable rents and current levels of supply and demand.

You need to be sure of the sector you are targeting. Are you looking for offices, warehouses, retail or leisure? You need to tailor your purchase with the target sector in mind.

Get to know local commercial property surveyors and agents. They can provide useful links to sellers and may be able to find a property for you before it goes on the open market. They will also be able to advise on property and rental values. Just be careful that they are acting for you and that there are no conflict of interests with the seller.

It is very important to instruct a solicitor early as they will be able to guide you through the process from making an offer, carrying out due diligence and searches, negotiating the contracts and dealing with completion, HMRC and Land Registry registration requirements. Our blog – Buying Commercial Property the Legal Essentials – provides more details for consideration.

How are you going to fund the purchase – cash reserves, securing a mortgage from a lender or re-mortgaging an existing property? If a mortgage is required you should try and agree a mortgage in principle as early as possible as being in a position to exchange quickly on a purchase may help secure a favourable purchase price. A mortgage broker may be best placed to advise on the mortgages available but for more bespoke facilities you may need to deal directly with a relationship manager at various banks or second tier lenders. We have good links with many lenders.

Consideration should be given to whether you are buying the property in your personal name, a company, a partnership or via your SIPP or SASS. Your solicitor can advise on the differences and in conjunction with your accountant early consideration may be beneficial for future tax planning or may rule in or out different types of funding.

Don’t forget that as well as purchasing a property direct from an owner or via a commercial property agent you may also be able to secure a suitable property at auction. This can be a quick way to secure a property but you must be sure that you have carried out all of your due diligence before the auction date and don’t buy a property that you have not viewed!

Our recent blog on buying a property at auction provides key considerations to be given to auction purchases.

To speak to Richard about buying a commercial property, please click here.

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Excellent experience start to finish – always very responsive to any queries and the turnaround on the property I was buying was very quick, even in the busy time leading up to stamp duty deadline. Jenny was always very helpful and went above and beyond to close on a short timescale.

Ben Armitage

“Very approachable, practical solutions to problems, but most of all very responsive which I personally think is very important because if you need help, you need it quickly, or at least to know someone is looking at it for you”.

Joanne Rowe, Finance Director, Greater Manchester Chamber

“Always able to contact, very approachable, friendly and professional”

Nives Feely, JAM Recruitment

“I believe I have been able to establish a professional working relationship with everyone I have come into contact. Importantly, I sense the relationships which have been established give me the confidence that I can make contact with Davis Blank Furniss at any time and on any matter. I would also like to express my thanks to the very impressive “gatekeepers” who work in reception, not only for making me very welcome, but also for their professionalism”

Bill Pryke, CEO, Chartered Institution of Civil Engineering Surveyors

“Thank you for your efficient and friendly help throughout this process. We have had it easy but your approach has been part of that”.

Robert Amsbury (Conveyancing Client)

“I would like to take this opportunity to thank you personally for the ongoing support and assistance the firm has offered to our parents over the years. I hope also that we may be able to call on you if necessary in the future.”

Valerie Fisher (Probate Client)

“Jo always provides great service, understands our needs and delivers on her promises. Our needs are relatively simple but the complexity arises out of the volume of work and short time frames, Jo always delivers.”

Peter Fernandez, Corporate Director at Royal Bank of Scotland

“A big thank you to all who dealt with my wife’s claim… We would not hesitate to recommend Davis Blank Furniss to anyone that may be in a situation like we have been…”

Anon (Personal Injury client)

“Before putting my case in Kirsty (Morbey)’s capable hands I’ve met a couple of other solicitors. None of them listen to me as intently as Kirsty and showed me as much empathy and understanding as she did. Simultaneously she was able to look at my case from legal perspective, explain all the options and follow each of our meetings with written summary of the discussed matters (in timely manner). Her advice was invaluable and led me to successfully ending the case matter (hopeful for good). I’m forever grateful for he work and would definitely recommend her to anyone looking for reliable, knowledgeable and committed solicitor”.

Anon (Family client)
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