Buying & Selling Freehold & Leasehold
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When you come to move on, the process could be as simple as waiting for your lease contract to run its course. If you have purchased a freehold property you will have to sell your premises, which could prove lengthy and costly. Leasehold properties can also present problems, particularly if circumstances mean you need to break your contract or otherwise leave the premises earlier than planned. You may be able to agree break clauses in the lease with the Landlord, but these will only be for specified dates agreed in advance.
The decision to purchase freehold or leasehold is far from straightforward. Our team have several years of experience and a thorough knowledge of all aspects of Commercial Property and can advise you on what is best for your needs. We can also continue to provide expert guidance and support to you throughout the buying or selling process.
When you purchase a commercial freehold property, you buy that property outright, much as you would a private residence. Some benefits to purchasing a freehold property are:
- The security of knowing you exclusively own your business premises
- The potential to modify the premises as you see fit (subject to planning permission), and the possibility of letting the whole or sub-letting part of your property to generate income
- The potentially cheaper monthly cost of mortgage payments compared to monthly rent
- Gaining a tangible asset which may appreciate regardless of the performance of your business
However, buying a freehold property also represents a significant initial investment. Not only will you need to pay a large deposit, but you will also be investing time and money into the upkeep of your premises, which will be entirely your responsibility. When you choose to move on you will have to sell, which could take time, and there is always some risk that the property could depreciate, losing you money.
Leasing a property, rather than buying, offers its own set of advantages:
- The flexibility to move to new premises that better suit the needs of your business, without the hassle of selling first
- Your landlord will in some cases assume responsibility for maintenance and repair of the premises depending upon the type of property you lease
- You will invest less capital upfront compared to a freehold purchase, as rent deposits are usually much smaller than the deposit required for a mortgage
As with purchasing freehold, however, there are some drawbacks to leasing commercial premises. From rent reviews that may increase your monthly outgoings to long, complicated contracts that can trap you into an agreement for longer than you would like and with stipulations you may not be happy with. Leasing can be a particularly challenging area of the law to navigate which we can help with.
What We Can Offer You
Our team have a thorough knowledge of all aspects of Commercial Property. Whether you are looking to buy, lease, or sell your property, you can rely on us to guide you through the process every step of the way.