Stone Survey
Investment & Acquisitions
Stone Investments & Acquisitions offer a comprehensive commercial property investment service, satisfying the needs of our clients who range from Institutions and property companies to high net worth individuals and overseas trusts.
When buying commercial property in the United Kingdom, there are a number of considerations which need to be taken into account which include management costs, taxation, Capital Allowance, possible future Capital Gains Tax liabilities, Value Added Tax, Stamp Duty, Land Tax, acquisition cost and agency fees.
When purchasing or selling property these costs will need to be deducted from any gross purchase price or sale and materially effect the actual value of any asset.
In addition to the above expenses, has to be added valuation and bank fees in the event that the purchaser is not using cash funds and of course legal fees on either a sale or purchase.
Once these considerations have been taken into account, the UK property market is one of the very few environments which can provide the investor with a long term income and security with historically rental and capital growth over the longer term. In addition, many leases now have fixed or minimum uplifts which provide the investor with a secure and known future income stream.
Another benefit of investing in commercial property in the UK is that many leases offer the landlord protection by the tenants who enter into full repairing and insuring leases which mean that the landlord is not responsible for the repairs and upkeep of the premises, or the cost of insurance and can rely on the tenant to take responsibility in this regard.
Generally speaking tenant leases tend to offer upward only rent reviews and accordingly in any market downturn the investor has protection of income stream, subject of course to the tenant having the ability to pay and honour their obligations.
In these uncertain times detailed background information on the covenant offered by the tenant is of paramount importance and is a major consideration when making a property purchase.
In many cases a building survey may also be required as well as an environmental audit and an Energy Performance Certificate. Whilst a number of these matters may appear daunting, Stone Survey's experience in the market place can navigate through the various hurdles to enable the investor to have a seamless acquisition or sale and a satisfactory completion.
In conclusion, commercial property can provide an investor with a sound investment, secure income (not least because of upward only rent reviews) and good prospects for long term capital appreciation. The standard institutional leases generally in place put full responsibility for day to day maintenance on the single tenant and where a multi-let building is concerned generally there are service charge provisions which protect the landlord. Usually, insurance is put in place by the landlord and the cost recovered from the tenant. Income accordingly is received in full with the exception of legal and accounting costs and any internal management.
Please talk to us for more details about how we can help you, by calling 020 7100 7087 / 020 3355 2055 or email info@stonesurvey.com.