January 7th, 2015. Ben Lloyd
A Complete Guide to Buying Commercial Property in London
There are many reasons why you may decide to purchase commercial property, specifically in London, however the buying process will remain the same regardless. So whether you are looking to secure an investment property, purchase a new headquarters for your company or expand your existing portfolio, here’s what you need to know about buying property in London:
1. Finding the Property
Arguably one of the most difficult things about buying property in London is finding what it is you’re looking for. While there are almost always properties available for sale, they may not match your requirements, budget or be in the right location. When the property you want does eventually come up, chances are that you aren’t going to be the only one interested either.
If you have exact specifications for the property you want, then you will need to give this information to as many estate agents as possible so that they can let you know when properties matching your requirements come up on the market. This can help to give you a head start on the competition and ensure you’re informed of any potential properties.
2. Choosing the Right Property
Once you’ve found a couple of properties that fit the bill, you’ll need to make sure that it really is what you need. Some things that you will need to consider when buying property are:
• Space – have you got room to expand and grow as a company? Have you got enough space for storage, displays and anything else you may require?
• Budget – quite simply, can you afford the property? If developing, would you be able to make a profit?
• Legal requirements – does the building meet all health and safety, and fire requirements? Is it structurally sound or would work need to be done in order to make it compliant?
• Accessibility – just being in London doesn’t mean the building is automatically accessible. Find out where the nearest public transport links are; is the building disability friendly? Can it be easily found from the street?
• Repairs – can you move straight in or do repairs need to be made? If the latter, how extensive are the repairs and how much will it cost to fix?
• Restrictions – a lot of London property is very old and may be listed, before making an offer make sure you find out what building restrictions are carried with the property.
If you’re sure that this property is perfect for your needs then you’ll need to move quickly in order to secure it. Property can be snapped up very quickly here so it is imperative that you put a bid forward as soon as you’re certain about the property in question.
3. Making an Offer
This is where things start to get exciting: making an offer on the property. There are many things that can affect the price you wish to start at, including the state of the properly, how long it has been on the market for, and what competition there is for it. Always try to start low and work your way up slowly – the cheaper you can buy the property for, the greater the profit you will make in the long run.
Once you’ve had an offer accepted you will need to get the finance required to make the purchase – unless of course you’re a cash buyer. Moving quickly here is essential to prevent being gazumped and losing out on this opportunity.
4. Getting the Right Finance
Just because you need to act quickly doesn’t mean you have to jump into the first commercial mortgage available. It is worth taking your time to research commercial mortgages in order to find out who can offer the best rates or taking on a commercial property broker to find the perfect deal for your needs.
When time is of the essence, a broker can help to drastically cut down the amount of time it takes you to receive the best possible finance package. Due to their in-depth knowledge of the market and connections with lenders, they will know who to approach and how best to present your circumstances in order to be successful in your application.
5. Completing the Deal?
Once the finance is sorted, all that’s left to do is exchange and complete. For the most part, your solicitors will sort out all the ins and outs here and all you will have to do is sign and return a couple of forms. It can take a couple of weeks to reach this stage, but provided there are no complications that’s all you need to do to secure commercial property in London.
To find out more about securing the best commercial finance for your needs, talk to Pure Commercial Finance today – give us a call on 02920 766 565 or fill out the contact form and we’ll get back to you. With a wealth of connections with lenders and in-depth knowledge of the industry, we have all the tools required to ensure you get the right package for you.
Article By Ben Lloyd
January 7th, 2015
Ben is the Director and Co-Founder of the Pure Group and Managing Director of Pure Property Finance.
Following a career in Barclays, where Ben was in the real estate finance team for 8 years, he decided that the market needed a more forward-thinking type of commercial brokerage so founded Pure Commercial Finance (now Pure Property Finance), the first company within the Pure Group.
Ben has extensive experience across the real estate sector and has participated in over £2bn of real estate transactions during the course of his career.
Ben oversees the general strategy at Pure Group and works with the senior leadership team to drive the Group forward. Ben is also on the Executive Committee of FIBA.See more articles by Ben