Buying a Commercial Building
What’s involved in buying a commercial building?
Investigations
- What can I find out about the property from the seller and other sources?
- Local Search, water search, environmental search, chancel repair liability.
- Other searches on infrastructure, such as gas, water and electricity.
- Flooding report.
Funding
- Should I invest my own money or raise a loan?
- What percentage of the value of the property will the bank lend me?
- Can I obtain funds from a third party funder who is not a high street, but a special commercial project lender?
- What extra or other requirements might they have?
The Property
- Why do I need to inspect the property fully?
- Why do you recommend I have a survey rather than a valuation?
- Is the property immediately adjacent to a highway, or is it within a trading estate?
- Is it part of a building rather than the whole thing?
- Is it a terraced property or freestanding?
Stamp Duty Land Tax
Stamp Duty Land Tax is a tax charged on transactions involving the acquisition of an interest in land in the UK, where the value exceeds a certain threshold. Stamp Duty Land Tax is charged at different rates, and has different thresholds, depending on the type of property and the value of the transaction.
VAT
VAT is a tax on the supply of goods and services made by a person registered for VAT (which can be an individual, partnership, a company or other form of legal entity) in the course of a business.
Registration at the Land Registry
The Land Registry is the government department which registers the ownership of land and property in England and Wales. Following the registration of land or property at the Land Registry, the Land Registry record any changes of ownership, mortgages or leases together with certain other interests that affect the land, following an application to register the change being made.
Companies House requirement
Companies House is the registry for companies incorporated in England and Wales.
Companies House provides 3 main functions:-
- The incorporation, re-registration, and dissolution of companies.
- Registration of documents which must be filed for companies under company, insolvency and other related legislation.
- The provision of company information to the public.
