Сommercial properties in London

Commercial real estate in London

• Commercial real estate (offices, shops, restaurants, warehouses, hotels, etc.) in London is a profitable investment due to the following reasons:
• commercial real estate London
• Stable rental income (from 5-12%) on long-term contracts (from 5 to 25 years), with the possibility to periodically increase (but not decrease!) the rental rate, as well as the steady growth of commercial real estate in price

Lack of worries about property management (standard lease contracts assign all running costs and worries to the tenant, as well as repairs on departure)

Developed market for commercial real estate purchase loans (up to 70%) of the cost, including for non-residents and offshore companies

The ability to record depreciation, interest deductions and a number of other items for expenses – the taxable profit from the lease is underestimated

Limitation of the tax rate on rental profits through structuring ownership, absence of capital gains tax on the sale of commercial real estate by a non-resident of the United Kingdom Apartments in new buildings
Well-developed infrastructure of services: valuation, rental agents, legal, tax, accounting services, lending

The possibility of obtaining personal guarantees from the owners (when handing over to a small business)

An advantageous stage of the economic cycle: the market has experienced a severe crisis and is beginning to recover. The recovery of the economy, the exchange rate of the pound sterling, and the credit market will contribute to an increase in prices and rental income from commercial real estate.

• Commercial real estate in London: profitability and risk factors
• Location (city, district)
• Type (for example, shops are less risky than offices)
• The quality of the building
• Tenant Quality
• Terms of the lease agreement (term, rate, etc.)