How to Buy Commercial Property: Step by Step

Buying commercial property follows a clear path from finding the property to completion. Knowing the steps helps you budget and avoid delays.

The steps

1. Set your budget and finance. Work out your equity, borrowing and total costs, including SDLT and fees. Arrange a commercial mortgage in principle if you need one.
2. Find and appraise. Assess the yield, the tenant and lease if it is tenanted, and the sector. Our yield calculator helps.
3. Agree heads of terms. Price and key conditions, usually subject to contract and to survey.
4. Due diligence. Title, searches, the CPSE enquiries, a building survey, and checks on EPC, planning, rates and environmental matters. See the due diligence checklist.
5. Legal work and finance. Your solicitor reports on title and the lease; the lender values and offers.
6. Exchange and complete. You commit on exchange and take ownership on completion, then file and pay SDLT.

Watch the VAT and structure

Decide early whether to buy personally, through a company or a pension, and get the VAT position clear, including any option to tax or TOGC. These are easiest to get right before you commit.

Get the right advisers

A commercial solicitor and a surveyor are essential. This is guidance, not advice on a specific purchase.

What are the main steps to buy commercial property?

Set your budget and finance, appraise the yield and tenant, agree heads of terms, do due diligence, complete the legal and finance work, then exchange and complete.

Should I decide the ownership structure before buying?

Yes. Whether to buy personally, through a company or a pension, and the VAT position, are easiest to get right before you commit.