25.04.2016 Interest in the UK commercial property on the rise

26.04.2016 To own or to Rent?

Interest in UK’s commercial property is on the rise. The objects of desire include pubs, restaurants, supermarkets and even banks.

As buy-to-let investors are spooked by the higher taxes, rising house prices and new limits on reliefs some are switching to the commercial property. The commercial property is a niche market that offers attractive rental yields, especially if a tenant is a well established brand name.

Current rate of return could be as high as 6% versus the buy-to-let which enjoys a mere 2 to 3% yields in the capital. Unlike their residential counterparts, the business tenants prefer longer leases and provide a more reliable income stream. It is very important that the landlord seeks the best legal advise in negotiating the lease structuring with a business tenant.

At Svetlova LLP we are well positioned to advise clients on such transactions and have years of experience in this field. We also connect with auction houses, developers and assist our clients on every aspect of a transaction.