PROPERTY


Top tips for buying commercial property


By Stephen Gordon, Executive Director at Banner Jones Solicitors


Whether you’re in the process of establishing a new business, or are looking to expand your current one, the chances are that the purchase – or lease – of commercial property may be something you’re considering. According to the latest figures by


the British Property Federation, commercial property accounts for 13% of the value of all buildings in the UK (a figure that amounts to £883bn) and, with 45 million sq ft of commercial property built in the UK every year coupled with a 63% increase in the number of businesses operating in the UK between 2000 and 2018, the commercial market is undoubtedly growing. Taking the plunge and investing


in your first commercial property can be daunting and the process may seem complex - here, Stephen Gordon, Executive Director at Banner Jones Solicitors, talks through his top tips for a smooth transaction.


GETTING THE TIMING RIGHT Firstly, it’s important to consider the timeline of commercial property acquisition. The whole process can take anywhere from months to years and, while navigating the various legal complications with the help of a solicitor, it’s a good idea to get a grasp on the ebbs and flows of the market, particularly in the region that you’re considering buying in. Naturally, the value, supply, and demand for property is subject to


variation so it’s wise to monitor the market closely and choose your time to buy wisely.


LOCATION AND SPECIFICATION Making sure that the property is right for your business will unquestionably be a top priority. When searching for and viewing premises, take the following into consideration and decide what – if anything – you’d be willing to compromise on:


1. Is the location favourable to your current staff as well as clients?


2. What is the accessibility like – is it close to public transport links?


3. Does the size of the premises allow for business growth – not too big, not to small?


4. How much might you need to set aside for ongoing maintenance?


5. Is the specification right? (Parking facilities, kitchen, close to amenities etc.)


MANAGING FINANCES As eager as you may be to invest in commercial property, it’s vital to consider whether purchasing or leasing premises is the right thing to do financially. Statistically speaking, over half of UK commercial property is leased but for the right property, and with loans and mortgage companies often offering funding solutions, a straight purchase may be more appropriate.


There are many factors to consider when buying a commerical property


‘Commercial property accounts for 13% of the value of all buildings in the UK’


INVESTING THROUGH A SIPP An increasingly popular method of investing in commercial premises is by purchasing it through a SIPP – a Self-Invested Personal Pension. Jillian Thomas, Partner of Banner


Jones Wealth Management LLP, says: “The property is an investment within the SIPP and owned by the Trustees of the pension scheme. “The Trustees can then grant a


lease to the tenant, which could be your own company or a third-party business. Rent is paid at a commercial rate, which is independently valued by a surveyor.


“You can potentially borrow up


to 50% of the net value of your SIPP assets for a commercial property purchase. For example, if the SIPP holds £300,000 of net assets, it is possible for a loan of £150,000 to be sought.” This type of transaction needs


professional assistance and specialists are able to guide and support you through the advice process. For support and guidance with


investing in commercial property through a SIPP, or for a greater understanding of legal processes that are involved, we advise that you seek expert legal and financial advice.


Community’s best interests are kept in mind


Nottinghamshire residents have praised national construction company Willmott Dixon for its commitment to keeping their interests at the heart of a redevelopment of an extra care facility in Sherwood to create Winwood Heights Retirement Village. The £12m scheme sees the


redevelopment of 180 extra care flats and the demolition of old garages and a community centre to


make way for 44 new-build units, a sky lounge, hairdressers and a communal lounge. It is being delivered by Willmott Dixon, on behalf of its customer, Nottingham City Homes. The scheme scored 45 out of 50 on the Considerate Constructors Scheme; a score this high is rare on a project of this scale.


Jenny Denman, resident,


previous chair of the tenant’s association and nominated voice of


the residents, said: “I can’t speak highly enough of Willmott Dixon – the project has been managed fantastically. All our concerns were considered and taken into account every step of the way. I have no doubt the project will be a huge confidence builder for our more vulnerable residents.” Callum O'Neill, Assistant Build


Manager for Willmott Dixon, said: “At Willmott Dixon we think it’s really important to leave something


extra behind for the community when we finish a project. Here, at Winwood Heights, the community work we have completed will help benefit the next generation of residents on the estate.” The project also provided a


benefit to the wider Nottinghamshire community through ensuring 75% of its supply chain came from local businesses. The project is due to complete


mid-2019. business network March 2019 79


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