Key questions to ask when considering buying your business premises
Many start-up businesses rent their business premises, but as the business expands it can make sense to purchase your own. The building becomes an asset for your business, and commercial mortgage payments can work out less than rent. When looking at properties to buy, there are some questions that you need to ask before you put in an offer.
Is the property big enough?
Often, the reason to relocate your business is due to expansion. There is not enough space in your existing building for the new employees you want to recruit.
You also need to think about future growth plans. The property you are considering buying may be large enough for your short-term needs, but what happens if your business grows further?
You could look at property that has enough height to install a mezzanine floor if your company expands. Make sure that a surveyor looks at the structural integrity of the building so that it will support such a development.
Is the car park large enough?
Business expansion means more employees and more cars. Though not all staff will drive, many will, so it is better to overestimate the car parks requirements than underestimate. The building you want to buy may be big enough for your business operations, but is there enough car parking space for both employees and visitors?
Are there good transport links?
Some employees will use public transport, so it helps if the property is near a bus stop or rail station. If your premises are in the city centre, this could add time to car drivers’ commute due to heavy town traffic.
If you dispatch goods using commercial vehicles, it helps to be near a major motorway
Are there amenities?
It’s useful to be near a bank and the post office. Though many businesses mainly take payments by credit and debit card payments or direct bank transfers, some customers still pay in cash and cheque. It saves time if your accounts staff do not have to travel far to pay in at the bank.
Staff will appreciate it if there are shops close by, and local bars and restaurants are useful for entertaining clients, or for staff to socialise after work.
Applying for a commercial mortgage
Buying your own premises is a big step to take, so it is important to find the property that is just right for your business. It helps to ask the right questions before making a purchasing decision and to make sure that the building is suitable for you both now and in the long term.
After you have found the right property and have put in an offer, talk to Ascot Mortgages about a commercial mortgage.
You will need a deposit, usually of around 25%, and also need to demonstrate to the lender that your business is financially sound to afford the monthly mortgage repayments.
A commercial mortgage advisor at Ascot has access to a wide range of lenders, so can match your borrowing requirements with the best lender.