The tenant is a business
We look at how long the tenant has traded, their accounts where available, and whether the premises suit what they do.
Ask about tenanted units → Commercial property investment
Commercial Property Investment
Offices, shops, industrial units and shops with flats above, for investors with larger deposits who want longer leases. We source them selectively and bring in commercial specialists where the deal needs them.
Commercial property is not our main market, and we say so. What we find usually comes through our residential networks: shops with flats above, small industrial units and straightforward offices.
- For experienced investors
- Specialist surveyors and solicitors introduced
- Fee payable on completion only
- Midlands and northern cities
How commercial differs from residential
| Commercial | Residential buy-to-let | |
|---|---|---|
| Tenant | A business | A person or household |
| Lease length | Commonly 5 to 25 years, often with break clauses | Periodic, with no fixed term, since 1 May 2026 |
| Repairs | Often the tenant's, under a full repairing and insuring lease | The landlord's |
| Value | Driven mainly by the rent and the lease | Driven mainly by comparable sales |
| Empty periods | Often months, sometimes more than a year | Usually weeks |
| Borrowing | Larger deposits, shorter terms, personal guarantees | Around 25% deposit, longer terms |
| Stamp duty | Non-residential rates, no additional-property surcharge | Residential rates plus the 5% surcharge |
| Selling | Fewer buyers, slower sales | Wider market, quicker sales |
Stamp duty and VAT: two costs residential buyers don't expect
- Non-residential stamp duty: 0% up to £150,000, 2% from £150,001 to £250,000, and 5% above that. On a £300,000 unit that is £4,500, with no additional-property surcharge.
- Mixed use: a shop with a flat above is charged at the same non-residential rates, but the commercial part must have a genuine separate use, and HMRC looks closely at mixed-use claims.
- VAT: if the seller has opted to tax the building, VAT at 20% is added to the price unless the sale qualifies as a transfer of a going concern. Stamp duty is then charged on the VAT-inclusive price.
A general summary, not tax or legal advice. Your solicitor and accountant need to confirm the VAT position before exchange.
Energy performance rules
Commercial property cannot currently be let with an energy performance rating below E unless an exemption applies. In June 2026 the government confirmed that buildings over 1,000 square metres will need to reach B from 2031 where cost-effective, with smaller buildings staying at E. The detail still has to be set out in legislation.
Before you buy, we check the current rating and, for larger buildings, what reaching B is likely to involve.
What we look at on a commercial deal
The lease is the asset
Length, break clauses, rent reviews, repairing terms and guarantees decide the value. A commercial solicitor reviews every one.
How we check a deal →
Plan for empty periods
When a commercial tenant leaves, you pay the mortgage, business rates and insurance until the next one arrives, often for many months.
Talk through the risks →
Offices and industrial units
Small offices near transport links and light industrial units with good road access are the commercial stock we see most often.
Where we source →The commercial sectors we see
Each behaves differently, so the checks change with the building.
Shops and parades
Local convenience shops and small parades serving a neighbourhood tend to hold up better than secondary high street units. Footfall and the tenant's trade matter more than the building.
Offices
Demand has split since 2020: well-located, modern space lets, while dated secondary offices can sit empty. Location and specification decide it.
Industrial units
Small units on estates with good road access are in steady demand from local trades and businesses, and are simple buildings to own.
Mixed use
Shops with flats above give two income streams in one building, and often come up through residential agents. Two sets of rules apply, one for each part.
Business rates and empty periods
While a commercial tenant is in, they usually pay the business rates. When the building is empty, the owner does, after a short relief period, alongside the mortgage, insurance and upkeep. That is why we budget for voids of many months on every commercial deal, and why the tenant's strength and the length of lease left matter so much when you buy.
Who commercial property suits
A larger deposit
Commercial lenders often ask for 25% to 40%, and some want more from first-time commercial buyers.
Deep reserves
Enough to carry the costs through a year without a tenant.
Property experience
Ideally a residential portfolio already, so the landlord basics are second nature.
Specialist advisers
A chartered surveyor, a commercial solicitor and an accountant, all involved before you commit.
How we handle commercial deals
We source commercial property selectively and say plainly when a deal is outside what we know well. For every commercial purchase we introduce a chartered surveyor for the valuation, a commercial property solicitor for the lease and title, and an accountant for the tax and VAT. You contract with them directly.
Our sourcing fee is set out in writing before we start and payable only on completion. For most first-time investors, a residential buy-to-let is still the better place to start.
Ask about commercial property
Tell us your budget, experience and the type of building you have in mind. We will tell you whether it is realistic.
Commercial property questions
How much do I need to invest in commercial property?
Much more than for a first buy-to-let. Lenders often want 25% to 40% deposits, and you need reserves for long empty periods. On a £300,000 unit that could mean a £75,000 to £120,000 deposit, £4,500 stamp duty, legal and survey fees, and possibly VAT if the seller has opted to tax.
How do commercial mortgages differ from buy-to-let?
Larger deposits, shorter terms, usually higher rates, and personal guarantees are common even for company borrowing. Lenders look closely at the tenant's strength and how long the lease has left to run. We can introduce you to brokers who arrange commercial finance.
How long do commercial properties stay empty between tenants?
Often six months or more, and a year or longer for secondary shops and older units. Plan a reserve that covers the mortgage, business rates, insurance and upkeep for that long.
What happens if my tenant's business fails?
Administrators can hand the lease back, leaving rent arrears and repairs as unsecured debts that rarely get paid in full. A rent deposit or a personal or parent-company guarantee helps. Checking the tenant's strength before you buy matters more than anything.
Should I buy commercial property personally or through a company?
It depends on your tax position and plans. Companies pay corporation tax at 19% to 25% but profits are taxed again when paid out; individuals pay capital gains tax at 18% or 24% on a sale. Lenders often want personal guarantees either way. Take accountancy advice before you buy.
Do you source shops with flats above?
Yes, and they are often the most practical commercial buy for a residential investor. Mixed-use purchases pay non-residential stamp duty rates, though HMRC looks closely at mixed-use claims. The flat is let under residential rules, including the Renters' Rights Act.