Commercial property is potentially a great investment- whether the chance to run a business or to benefit from renting a property to someone running a business there are a lot of opportunities. However it is important to be aware of a few potential issues to ensure that you get the best deal.


  • If you own a commercial property as opposed to renting it there is no risk of rent increases
  • The potential for increased value through capital gains
  • Potential for secure monthly payments (payments are said to be on a par with rental payments)
  • The interest payment on a commercial mortgage is tax deductible
  • You could sublet (though you need to check with the mortgage lender first!)
  • More flexibility in terms of the operation (you decide location, design the premises to suit your needs and so forth).



There are a few issues to be aware of before you purchase commercial property.

  • Deposits for commercial property can be up to 30%.
  • You need to maintain maintenance of the property.
  • Property can go down in value and you are vulnerable to changes in interest rates.
  • Less flexibility in terms of freedom of movement- the advantage of renting is that if you outgrow a certain area or you need to downsize you can do so with a shorter period of notice than you would if you purchase the property.


What is right for me?

The issue this clearly raises is “What is right for me?” Essentially what you need to do is to look at whether the benefits are so appealing that they make up for the potential issues or if the issues seem too much of a risk. In effect it is about deciding what would be best for you both in the short term and the long term.

This can be a lot to think about and sometimes it is not as simple as saying “I definitely want to do this.” Sometimes it takes a bit of advice to clarify what is best suited to you.

This is why we believe in offering legal advice tailored to our clients rather than simply being there to represent you. The motto behind Larcomes is “Big enough to specialise, small enough to care.” This means that when you contact Larcomes you get someone who has the skills and experience you need but more importantly that you can approach them and they will work with you.

When it comes to business this is a big decision- what is best for you now may not necessarily be appropriate in a few month’s time. This is why it pays to get specialist advice geared toward your particular circumstances with a view to the future and potential growth.

In short if you want to decide whether or not to invest in commercial property contact us today so we can guide you through the options available and help you make the best choice for your business.