Whether you're buying your first office or upgrading to a larger work environment, buying commercial property is a big, expensive commitment.
Before you set your heart on your new location for your empire, it's vital that you understand all costs involved and check that you have the necessary funds to keep your business in the black. Here's the lowdown on the average fees involved:
Unless you are purchasing your office outright, you will require a commercial mortgage to secure the property. As with a residential property, securing a mortgage for your business will result in certain fees. The mortgage arrangement fees will depend upon the lender and the property you are buying, but on average you can expect to pay between 0.5% and 1.5% of the loan value.
The cost of an acquisition surveyor will be roughly 0.5% to 3% of the cost of the property purchased, but it is worth bearing in mind that you may be able to negotiate on this cost to get a better deal.
The fees charged by your solicitors will range between 0.5% and 1.25% of the purchase value. As with the surveyors though, you may also be able to negotiate on these fees to save on your funds.
For the vast majority of commercial properties, you will be required to pay stamp duty land tax; the rates will start at around 1% of the property value and can rise to 4% for property that is purchased for over £500,000.
VAT costs won't be incurred in every case, but some commercial properties have been elected for VAT which means that you will have to pay this as the buyer. However, it's worth remembering that you may be able to claim this back if you are VAT registered.
Again, as with a residential property, purchasing a commercial property will require certain land and local authority searches. Your solicitor should be able to organise these for you and advise on the necessary costs.
Finding a reliable office removals company for your business equipment is essential and when you begin your search, you will be presented with a wide array of prices. Be sure to collect a number of removal quotes to find yourself the best possible deal.
As well as all of the above fees, you will also need to consider how long your business will be out of operation for in order to move; calculate the total cost of this to help you decide whether you can afford to move without forcing your business into the red.
If you are ready to move to your new office and you're looking for a reliable removals company, then get in touch with us and receive up to 4 free quotes.
Last updated on Monday 21st August 2017