Buying commercial premises: what to check before you commit
Commercial property is where a good deal and a costly one look almost identical until completion. The difference is what your solicitor found — or didn't — before you signed.
By Robert Festenstein, Head of Legal
Updated 15 July 2026
7 min read
The short version
- Decide how to hold the property — personally, through a company, or a pension — before you commit; it has lasting tax and liability consequences.
- Searches, surveys and enquiries flush out planning, environmental and title problems before they're yours.
- If you're borrowing, the lender's requirements and security add another layer to get right.
- Budget for Stamp Duty Land Tax, VAT (which can apply to commercial property) and professional fees on top of the price.
Settle the ownership question first
Before you get swept up in the deal, answer one question: how are you going to hold this property? Personally, through your trading company, through a separate property company, or even a pension scheme — each has different consequences for tax, liability and how easily you can pass it on. Changing your mind after completion is expensive and sometimes impossible, so this is a decision to take deliberately at the start, with the legal and tax angles considered together, not an afterthought once the surveyor's booked.
What the checks uncover
Commercial property due diligence is where problems get found while they're still the seller's problem. A proper process looks at the title (does the seller own what they're selling, free of nasty surprises?), searches (planning history, environmental risks, road schemes, drainage), planning and use (can you actually use it for what you intend?), and physical condition via survey. On commercial property especially, issues like contaminated land, restrictive covenants on use, or a planning position that doesn't match your plans can be genuinely expensive — and far cheaper to discover before you're committed than after.
Want this looked at for your situation?
Book a no-obligation conversation with one of our solicitors.
Finance and security
If you're borrowing to buy, the lender becomes a third party in the transaction with its own requirements. It will take security over the property (a legal charge), impose conditions, and need its own paperwork satisfied before it releases funds — all of which has to line up with completion. And watch the tax: unlike most residential purchases, commercial property can attract VAT depending on the property and the seller's position, on top of Stamp Duty Land Tax. Those are real numbers to build into your budget from the outset.
After completion
Completion is the handover, not the end. The transfer has to be registered, Stamp Duty dealt with, and — if you've bought a property with tenants — you step into the shoes of the landlord, with all the lease obligations that come with it. Getting the whole picture handled properly is what turns a commercial purchase from a leap of faith into a sound investment.
Frequently asked questions
Should I buy business premises personally or through a company?
It depends on your tax position, how you'll finance it, your liability appetite and your plans for the property. Each route has real and lasting consequences, so it's a decision to take deliberately at the start with legal and tax advice together — it's difficult and costly to change after completion.
Does VAT apply when buying commercial property?
It can — unlike most residential purchases, commercial property may attract VAT depending on the property and whether the seller has 'opted to tax'. It's a significant sum to factor into your budget and financing, so establish the VAT position early rather than being surprised by it near completion.
What searches do I need when buying commercial premises?
Typically local authority, environmental, water and drainage, and often more specialist searches depending on the property and its location and use. They uncover planning issues, contamination risk, road schemes and other problems that could affect value or your intended use — all far cheaper to find before you commit than after.
Sources & further reading
This article is general information, not legal advice. The law changes and depends on your circumstances — always take advice on your specific situation before acting. Last reviewed 15 July 2026. Buzz Solicitors is a trading name of AD Solicitors Limited, a recognised body regulated by the SRA (no. 8011228).
A solicitor with more than two decades' experience in commercial law, dispute resolution, insolvency and judicial review. Robert acts for businesses, directors and individuals on the matters that carry real consequence — and leads Buzz Solicitors.
Practical law, direct to your inbox.
One useful email a month on commercial, property and private-client law for business owners — no jargon, no spam, unsubscribe anytime.
By subscribing you agree to our privacy notice.