House With Separate Office

Reformed_Spender

I might be buying a house that has a separate building currently configured as an office. The office building is a reasonable size at 2000 Sq Ft.


Would I be able to let this on a commercial basis?


Apart from the tax liability is there anything else I need to think about?


How are things such as business rates handled and do I need special certifications for a commercial property?


Many thanks for anyone taking the time to read and respond.

00ec25

either it is already classed as a business premises (and so subject to national non domestic rates "NNDR" ) or it isn't

we cannot say from here...

jjlandlord

There may also be capital gains tax implications the day you sell.

Reformed_Spender

ok, thanks, but that didn't really answer my questions...

Annie1960

Talk to your local council, they should be able to answer your questions.

Johnandabby

I don't know about the legal side, but in terms of practicalities:


Do you have car parking spaces available? 2000 sqft could fit 20 people, each with their own car.... Visitors? Deliveries?


As a commercial landlord you would need to ensure that the property meets Health & Safety requirements. Fire detection & alarms, emergency lighting, signage etc


Is there a separate electricity meter/supply to the property? Separate heating system? Otherwise you would need to work out how to recharge this, which could be a significant running cost. Phone line & broadband?


Rental income might sound attractive, but probably a real hassle to set-up and manage, together with the day-to-day hassle of having lots of people around.

davidmcn

You'll need consent from your lender if you have a mortgage. Which might be tricky as they'll not expect commercial leases in residential mortgaged properties.