Moving your business into a new premise is an exciting time, but it can also be a stressful one if you don’t know where to look, or indeed how to look properly. Finding commercial property in London is all about timing, and whether it’s locating a site, getting a commercial mortgage or securing the building, these things take a lot of careful planning. The first thing to decide on: whether you actually want to buy the property or if you’d be better off renting.
Of course, there are many advantages to buying, including the fact that your mind is free from worrying about rental increases. Plus, if your property increases in value, your business will also be able to benefit from capital gains. A lot of people also like the freedom that buying a property provides because then you are free to design things exactly how you want them to be. Finally, commercial mortgages have tax deductible interest payments, so you’ll be saving yourself some money.
However there are some disadvantages which mean you might sometimes be better advised trying to find commercial property for rent. One such downside is the fact that you’ll need to provide a deposit of about 20-30% of the value of the property in advance. You’ll also need to set aside money to maintain the property, and if it loses value then it will have a negative impact on your business capital. You’ll also be afforded less flexibility than you would if you were renting.
Conveyancing searches made by solicitors to find out more information about a property can also be helpful if you are intending to purchase a commercial property. For that, you can search providers conveyancing or related services who can carry out queries with the local council and others. After deciding if you want to buy or rent you might also need to focus on the specifics, such as how much room you need per employee and whether you need dedicated rooms for meetings and interviews. Parking, storage, and security are other points that you need to consider carefully – fortunately, you can buy things like a steel bollard post to help guide people (and vehicles) safely to where they need to be. The main factor, however, will always be location. Retailers have to be located in positions where they have good visibility, while service providers should make sure that they are close to good transport links.
Property industry publications can provide a good source of knowledge when you’re looking for the ideal business location. They often include different surveys of London areas and industry sectors, which can all help when it comes to forming a good idea about your perfect property space. If you’re really doing your research then you can make direct contact with other local businesses in areas that you’re interested in, to hear their opinion of the location and whether they recommend it for your requirements.
Once you settle on the ideal commercial property it’s time to finance the purchase. This typically requires something called a commercial mortgage, and you’ll often need to commit to a minimum mortgage term of around 15 years. Remember, the deposits on these types of mortgages are usually much higher than they are for residential property, and you will also need to provide details about your business accounts and cash flow projections.
After everything has been sorted out and you have finally moved into your great new commercial space in London then you can get started with the fun stuff. Kitting your premises out with the right furniture and equipment allows you to really make it your own, and when it’s all said and done you’ll be able to look on with pride as your swanky new offices bring in new business.