Useful Information: Costs Associated With Purchasing a Commercial Property
Purchase Expenses
| Valuation Fee |
Bank valuation – this typically costs between £500 and £1,000. This fee is for the bank’s valuation and will not necessarily take the place of a full survey for your own purposes.Structural Survey – costs will vary extensively depending upon the type of survey required and the type of property in question. |
| Deposit |
Most lenders will advance a maximum of 70% of the property value. The balance is your responsibility |
| Legal Fees |
Typically around 1% of value – actual fee will depend upon the complexity of the property title. |
| Bank Lending Fee |
Typically around 1% of value – actual fee required will depend upon the strength of the business balance sheet. |
| Stamp Duty |
Dependent upon property value (there are some location based exemptions). |
| Mortgage broker fee |
Only applies if broker is used - usually 1% of amount raised. |
| Other Costs |
Depending upon where you are buying; other costs you may incur include: refurbishment costs, office move costs, stationary and literature reprint costs and costs associated with downtime related to your move. | |
| |
 |
| |
| Typical Monthly Repayments per £1,000 | |
|
| |
| |
|
Gross Rate |
10 years |
15 years |
20 years |
25 years |
30 years |
Interest Only |
| 3% |
9.77 |
6.98 |
5.60 |
4.79 |
4.25 |
2.5 |
| 4% |
10.27 |
7.50 |
6.13 |
5.33 |
4.82 |
3.33 |
| 5% |
10.79 |
8.03 |
6.69 |
5.91 |
5.42 |
4.17 |
| 6% |
11.32 |
8.58 |
7.27 |
6.52 |
6.05 |
5 |
| 7% |
11.86 |
9.15 |
7.87 |
7.15 |
6.72 |
5.83 |
| 8% |
12.42 |
9.74 |
8.49 |
7.81 |
7.40 |
6.67 |
| 9% |
12.99 |
10.34 |
9.13 |
8.48 |
8.11 |
7.50 |
| 10% |
13.56 |
10.96 |
9.79 |
9.18 |
8.84 |
8.33 |
| 11% |
14.15 |
11.59 |
10.46 |
9.90 |
9.59 |
9.17 | |
|
|
E.g. for a £200,000 repayment mortgage taken out over 20 years, at a gross rate of 6% the monthly repayments would be 200*7.27 = £1,454.00
Disclaimer: The information in this article is for obvious reasons generic in nature. You are advised to seek professional advice before implementing any of the above. | |
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