Should you buy or lease your commercial property, and which is more suitable for your business needs?


Here at Jordans Solicitors we have provided legal advice and support to countless businesses buying or leasing property across the country with. Below are some points to consider when deciding whether to buy or lease:

The Advantages of Buying

  • Profit – if you no longer require your property, it is likely that you will sell the property at a profit
  • Income – alternatively, if you have additional space that you do not require, you can sub-let that part to produce income
  • Control – if you decide to change the use for your property or make changes to the property itself, you will not require permission from a landlord to do so.

The Disadvantages of Buying

  • Cash flow – the money used to deposit a purchase could be better invested elsewhere in your business for expansion
  • Loss – there is a possibility that the value of the property could decrease, resulting in the potential for a loss upon the sale of the property
  • Rigidity – if your business needs change and you require a bigger property or to downsize, you will have limited flexibility without having to resort to a time-consuming sale

The Advantages of Leasing

  • Stability – you will have more control of your monthly budgeting as well as fewer upfront costs
  • Negotiation – you could negotiate benefits such as a rent free period, reduced maintenance costs or responsibilities and increased control of your lease through options such as break clauses
  • Flexibility – if you outgrow your premises, you have greater flexibility to move with short term leases, effectively reducing your level of risk

The Disadvantages of Leasing

  • Instability –you would not enjoy the stability of owning a property in the long-term
  • Cash flow – you will have to contribute to regular maintenance, repair, and insuring costs on top of your rent payments
  • Rigidity – the landlords permission could be required for even simple changes such as putting up new signs

When undertaking any type of property or land transaction, it is essential to obtain specialist legal support from solicitors you can trust. An experienced solicitor can minimise disruption to your business by addressing any potential problems early, negotiating effectively and helping to manage risk.

At Jordans Solicitors, we build a close working relationship with our clients to understand their business needs and provide a balanced, clear, commercial and personal service. Contact us on 033 0300 1103.

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