There are many benefits to purchasing your own property.
Firstly you will not be wasting money on rent. The value of the building may rise over time, which will build equity in the premises and can be withdrawn through lending for further investment in the business. Also, you get complete control over how you wish to utilise the space. For example, you can bring in a tenant to occupy any unused parts of the building to generate further income.
"The best time to purchase a property is when rents in the commercial property market are low and at the start of a business’ financial year." says Asif Moghal, a solicitor in Cwmbran-based QualitySolicitors Rubin Lewis O'Brien's commercial property team.
"When purchasing a commercial property, firstly you need to identify your business needs such as the amount of space required, type and location of premises and what it can afford in monthly loan instalments.The next step is to approach the bank to discuss the proposed acquisition and assess how much the bank can lend towards a purchase and then discuss your options with a reputable commercial property agent familiar with the area."
"In purchasing a property there are inevitable pitfalls to watch out for. The best thing to do is to obtain a survey to identify any remedial works required as these can be very expensive for commercial property. It is always wise to avoid premises which are too big and too expensive to maintain, or which are simply unsuitable for the required use. Similarly, purchasers should try to avoid premises which may be too small and are likely to be outgrown by the business very quickly."
The recent budget has affected the restriction on Capital Allowance claims from April 1, 2014, so that details of Capital Allowances claimed by a seller must be brought into the purchase process or else the allowances may not be claimable.
Mr Moghal said:"Purchasing commercial property is a bespoke exercise that needs to reflect the needs of the business.It is always best to take a practical approach to identifying those needs and to ultimately help a client achieve their goal. This means you can be sure that when you instruct us to assist your business you will get a quality service that meets your individual needs."
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