Purchaser’s costs of commercial property encompass a range of expenses beyond the purchase price itself. These additional costs can significantly impact the overall investment and must be carefully considered by any prospective buyer.
Table of Contents
What are purchaser’s costs of commercial property?
Purchaser’s costs for commercial property include various fees and taxes that add to the total expense of acquiring a property. These costs typically fall into several categories.
How much are legal fees for commercial property purchases?
Legal fees for commercial property purchases usually range from 0.5% to 1.25% of the transaction value. These fees cover the solicitor’s work in handling the legal aspects of the purchase, including contract review, due diligence, and property searches.
What is Stamp Duty Land Tax (SDLT) for commercial properties?
Stamp Duty Land Tax is a significant cost for commercial property buyers. The rates are:
- 0% on property values up to £150,000
- 2% on the portion from £150,001 to £250,000
- 5% on the portion above £250,000
For example, a £2,400,000 commercial property would incur SDLT of £109,500.
Are there surveyor fees involved in commercial property purchases?
Yes, surveyor fees are an important part of the purchase process. An acquisition surveyor typically charges between 0.5% to 3% of the total purchase cost, depending on the complexity of the property and the skills required for the assessment.
What other costs should commercial property buyers be aware of?
Other costs to consider include:
- Mortgage arrangement fees (if financing is required)
- Business rates
- Energy Performance Certificate (EPC) costs
- Planning permission fees (if changes to the property use are needed)
- Renovation or refurbishment costs
How do business rates affect commercial property ownership?
Business rates are a tax on commercial properties based on their rateable value. The rates are set by the government and can be a significant ongoing cost for property owners or tenants.
What are the typical purchaser’s costs as a percentage of the property value?
| Cost Type | Percentage of Property Value |
|---|---|
| Legal Fees | 0.5% – 1.25% |
| Surveyor Fees | 0.5% – 3% |
| SDLT | Varies based on property value |
| Other Costs | 1% – 2% |
Are there any ways to reduce purchaser’s costs for commercial properties?
While many costs are fixed, there are some strategies to potentially reduce expenses:
- Negotiate legal and surveyor fees
- Check for SDLT reliefs or exemptions
- Consider properties just below SDLT thresholds
- Investigate energy efficiency improvements to reduce ongoing costs
How do purchaser’s costs differ for leasehold commercial properties?
Leasehold properties may have different cost structures:
- SDLT is calculated differently, based on the lease premium and net present value of rent
- Additional costs may include service charges and ground rent
- Legal fees might be higher due to the complexity of lease agreements
Overcoming Commercial Property Sale Hurdles
Commercial property sales can be complex, with various challenges arising depending on the seller’s circumstances. Financial distress, inherited properties, and tenant issues are common problems that can complicate the sale process. Traditional methods like estate agents and auctions often come with drawbacks such as high fees, extended marketing periods, and uncertainty of sale.
Property Saviour offers a unique alternative for commercial property sellers facing these challenges. With quick sales completed within 2-4 weeks, no fees or commissions, and the ability to purchase properties in any condition, Property Saviour provides a hassle-free solution. We specialise in handling complex situations, including tenant disputes, structural issues, and inherited properties, offering certainty of sale without the risks associated with traditional methods.
When deciding how to sell a commercial property, it’s important to consider factors such as the urgency of the sale, the property’s condition, and the level of certainty required. If you’re facing challenges with selling your commercial property, Property Saviour’s team of experts can make a no-obligation cash offer and guide you through a swift, straightforward sale process.
Sell with certainty & speed
Property Saviour Price Promise
- The price we’ll offer is the price that you will receive with no hidden deductions.
- Be careful with ‘cash buyers’ who require a valuation needed for a mortgage or bridging loan.
- These valuations or surveys result in delays and price reductions later on.
- We are cash buyers. There are no surveys.
- We always provide proof of funds with every formal offer issued.
We'll Pay £1,500 Towards Your Legal Fees
- No long exclusivity agreement to sign because we are the buyers.
- You are welcome to use your own solicitor.
- If you don’t have one, we can ask our solicitors for recommendations.
- We share our solicitor’s details and issue a Memorandum of Sale.
Sell With Certainty & Speed
- Our approach is transparent and ethical, which is why sellers trust us.
- 100% Discretion guaranteed.
- If you have another buyer, you can put us in a contracts race to see who completes first.
- Complete in 10 days or at a timescale that works for you. You are in control.
