Commercial property
Shops, offices, industrial units and other non-residential property let to businesses.
Professional analysis
Analyse covenant strength, lease length to break/expiry, rent review basis, repairing terms (FRI), service charge recoverability, MEES (minimum E), and VAT (option to tax). SDLT uses non-residential rates. Finance is commercial (lower LTV, shorter terms).
Capital requirements
Typically 30–40% deposit plus SDLT at non-residential rates and fees.
Cost assumptions to budget for
- Non-residential SDLT
- Legal and survey (often higher)
- Void costs: business rates and service charges on empty units
- Letting fees and incentives
Potential returns
Net initial yield after purchase costs; see the calculator.
Main risks
- Tenant default and long voids
- Structural change (retail, offices)
- Empty rates liability
- Obsolescence and energy standards
Legal checks
- Lease review (alienation, break clauses, repair)
- Landlord and Tenant Act 1954 security of tenure
Regulatory checks
- Non-domestic MEES
- VAT option to tax
- Business rates
Is it suitable?
Often suits
- Investors seeking longer leases with professional advice
Usually not suitable for
- Investors without a void buffer
A general guide, not a personal recommendation. Suitability depends on your finances, experience and attitude to risk.
Step-by-step
- Review lease and tenant accounts.
- Check VAT status and rates.
- Run the commercial yield calculator.
- Commission a commercial survey and legal due diligence.
Financial calculations
Commercial / mixed-use yield
- ⚠ Mixed-use purchases also use non-residential SDLT rates.
Every figure above comes from the assumptions you entered. This is not a valuation, mortgage offer or financial advice.
Create a free account to save calculations.
Official sources
- Opting to tax land and buildings (VAT Notice 742A)
- Business rates (GOV.UK)
- Stamp Duty Land Tax (GOV.UK)
Last reviewed 31 Oct 2026. Rules change — check the source before relying on this guide.
Not advice