Now April is here, a number of legal changes in commercial property are about to come into effect.
As of this month, businesses will have to pay revised business rates. Most properties will face a rates rise, but there is some transitional relief available. Tenants will normally pay the rates, but if a property has been empty for an extended period, rates will need to be paid by the landlord.
Multi-occupied buildings will see the method of calculating rates changed. Previously, multi occupancy buildings were assessed on an aggregate basis, but now each occupier will be assessed as if they occupied separate premises.
From April 2018, landlords will not be allowed to rent out commercial property that has an F or G energy performance certificate. This means that landlords will have to do work to convert F or G premises to at least an E rating. There are some exceptions, but the last day to apply to be considered for these is today (April 1).
Commercial property landlords face the rising costs of making sure that their buildings conform to health and safety regulations and are well maintained. The new changes may add further to the expenses of running a commercial property business. However, commercial property investment can be still a sound and profitable business.
Competition amongst commercial mortgage providers is fierce, which has caused interest rates and fees to remain low. A commercial mortgage broker can find the best mortgage deals for either the new property investor, or to increase the property portfolio of existing investors.