Your workplace is probably your second largest outgoing, so when buying commercial property, you have an even greater incentive to get it right, the first time.
There are 2 Types of Investment For Commercial Properties
A simple definition of each:
- Freehold: you own the land and the buildings on it
- Leasehold: you rent the property from a landlord for an agreed length of time.
What are the advantages of Freehold Commercial Property?
In the property market within Northern Ireland, freehold properties tend to make up the most of commercial properties available to buy in any given town or city. For Leasehold, you may or may not be legally bound to pay ground rent. You should look carefully at the Leasehold agreement before purchasing this type of property investment to understand ground rent, lease expiry, service charges, etc.
Buying a freehold commercial property can have many advantages:
- There is no lease period and therefore no risk of losing the premises once a lease has expired
- The value may appreciate over time and allow you to resale for a capital gain.
- As the property will be under your ownership you have more flexibility over what use the property is put to – rented, sold, used for your own business etc.
- Over a period, the property could rise in value, ensuring a return on your investment
- The premises can be altered as you see fit (subject of course to planning and laws)
What are the costs involved in buying a Freehold commercial property?
In addition to the price of the property, there are several other costs to consider when it comes to purchasing a commercial property, including commercial property tax. In Northern Ireland, this is known as stamp duty. This is payable on properties with a value of more than £150,000 at 2% up to £250,000 and then 5% on the remainder.
Other costs could include VAT on the sale, decorating, refurbishing, and fitting out the property, transporting items to the property, installing facilities and running costs.
Why a solicitor plays an important role in buying commercial property
Buying commercial property is a significant investment for your business. You must take the time to make the right decision and seek professional legal advice when doing so, in which case you need a McPartland & Sons solicitor that specialises in commercial property law. Our team will help you understand exactly what is in the purchasing contract and what your responsibilities will be if you sign it.
You will need to pay a solicitor’s fee for using our service for commercial property legal advice. McPartland & Sons can give you an estimate from the outset so that you can factor this cost in to your overall project budget.
Solicitor Duties in Buying Commercial Property
McPartland & Sons Solicitors will:
- Make sure that everything about the ownership of the property is in order and that you can use the property for business purposes
- Negotiate the best contract terms for you
- Help you understand any contractual jargon
- Deal with any legal issues with the seller’s solicitors
- If required, arrange a survey to be carried out on the property
- Satisfy the bank or lenders that the property is a good investment
- Help you to complete your purchase as quickly as possible
To find out how our commercial property solicitors could help you, contact us today at our Lisburn office on 028 9267 0325 or the Lurgan branch on 028 3832 2452.