An introduction to commercial property investment in the UK

Commercial property is a major investment in all respects. In the most literal sense, corporate facilities and large residential buildings are physically big – but more importantly, they can potentially generate much higher returns than houses, apartments or semi-commercial properties. 

If you have (or can secure) the capital to invest in a commercial building, the next step is to decide where to invest. The most obvious answer might be to buy property near where you live, but in the long term, that might not be the most lucrative option.  

Another approach is to buy a commercial building overseas. Property investment in the UK, for example, is well worth exploring. The country’s relative stability over time, transparent legal framework and clear property laws make it a magnet for investors from around the world. In other words, it’s a tried-and-tested environment.  

But before making investment plans of any kind – property or otherwise – it's important to fully understand what you’re getting yourself into. Learning about the UK commercial property market and the buying process can help you make an informed, confident decision. 

In this guide, we’ll explain why property investment in the UK could be a good choice. Then, we’ll walk you through the process step by step and highlight key factors to consider as you navigate the market. 

Important: The information in this guide is general in nature, not legally binding, and should not be considered financial or investment advice. 

Why invest in UK commercial property? 

The UK is one of the world’s most attractive destinations for property investment, offering a stable and dynamic climate for growth. With a strong economy and a commercial property sector worth over £1.4 trillion, demand remains high for office spaces, retail units and industrial sites. The UK’s economic resilience makes it a secure option for investors looking for long-term returns. 

As a global business hub, the UK attracts multinational corporations and entrepreneurs, driving consistent demand for commercial properties. London alone is home to over 40% of the European headquarters of the world’s top companies, ensuring steady rental yields and capital appreciation. Whether you’re investing in a city centre office block or a logistics hub, the UK offers diverse opportunities to suit different investment strategies. 

The UK’s transparent legal system strengthens investor confidence by ensuring clear ownership rights and a well-regulated transaction process. With a property market that balances stability, opportunity and accessibility, the UK continues to be a top choice for investors looking to expand internationally. 

Step-by-step guide to commercial property investment in the UK 

Step 1: Clarify your investment goals 

Before you start looking for properties, it can be wise to think about your objectives – in other words, what you want to get out of property investment.  

For instance, are you looking for long-term capital appreciation, regular rental income or a combination of both? Do you feel drawn to retail, office, industrial or mixed-use buildings? How much risk are you willing to take, what return on investment do you hope to gain and how long do you want to wait before reaping the returns? 

At this stage, many potential investors seek the advice of an expert – for example, a financial advisor or a real estate investment advisor. If you’re interested in buying to let, you might also want to meet with a property management consultant. 

Step 2: Learn about the market 

Next, it’s important to research the commercial market to make sure you land in the right place. London isn’t the only UK city worth considering as you create your touchdown plan: Manchester, Birmingham and other regional hubs are also growing, and present opportunities to invest for less than those found in the capital. 

Staying up to date on rental yields, vacancy rates, overall demand and other market trends in various locations can help you decide on a target area. Economic factors like interest rates, local inflation and regional economic growth are also worth considering as you zero in. 

Again, it can be helpful to speak with an experienced consultant or market analyst familiar with the UK before moving forward. By taking this approach, you could gain valuable insight and tailored advice to help you understand potential risks and make informed decisions. 

Step 3: Secure financing 

Unless you’re purchasing outright, you’ll need to arrange financing. Here are some options available to overseas investors: 

• Commercial mortgages: Many UK banks and financial institutions offer loans to foreign investors. However, these typically require a higher deposit, usually between 25-40%. Lending criteria can vary, so it’s worth comparing different providers to find the best fit. 

• Private financing: Some investors choose alternative funding routes – for example private lenders, family offices or joint ventures. These options may offer more flexibility but can come with higher interest rates or different risk factors. 

• Bridging loans: These are short-term loans designed to help buyers quickly secure property while they arrange longer-term financing. For non-residents purchasing property, these loans can be particularly useful, as traditional mortgage approval may take longer or be more complex due to residency status and international income sources. 

  
  

Important: Lenders offering bridging finance to non-residents typically assess factors like the property's value, the buyer's repayment strategy and their financial background. These loans often have higher interest rates than standard mortgages but provide flexibility, allowing buyers to complete purchases swiftly – especially in competitive markets.  

In many commercial property transactions, escrow is used to protect both buyers and sellers by holding funds securely until all conditions of the sale are met. This ensures that money only changes hands once everyone has fulfilled their part of the agreement, helping the process run smoothly and fairly. 

Learn more about escrow services from Interpolitan Money. 

Before committing to any financing option, make sure you fully understand the terms, including interest rates, repayment schedules and any additional fees. Chatting with a financial advisor who specialises in UK property investment can help you understand the choices available to you. 

Step 4: Assemble your team 

To invest in property successfully, you’ll need help from a team of experienced professionals, some of whom we’ve mentioned above. To recap, here’s a list of experts you may want to assemble – especially if you don’t currently invest in property locally. 

Solicitor/conveyancer 

Solicitors and conveyancers are legal experts who ensure real estate sales comply with UK property laws. They review contracts, conduct property searches, verify title deeds, look at planning permissions and support the secure transfer of ownership. 

Property agent 

Property agents help you find suitable properties, assess valuations, negotiate prices and guide you through market trends and investment opportunities. They can be especially helpful if you live abroad and need advice before visiting properties in person. 

Tax advisor 

Tax advisors give expert advice about tax obligations, including VAT, stamp duty and capital gains tax, helping you structure your investment efficiently. 

Currency specialist 

Currency specialists assist with foreign exchange transactions, helping you minimise costs and manage currency risks when transferring funds internationally.  

Step 5: Shortlist and evaluate properties 

With investment goals, locations and finances sorted, plus a group of talented professionals at your side, it’s time to start shortlisting potential winners.  

Here’s what to consider as you evaluate properties: 

• Location and accessibility: Is the property located near convenient transport links, business hubs and essential amenities? 

• Condition and maintenance: Does the building need significant renovation or ongoing upkeep? If so, factor in these costs before committing. 

• Rental yield potential: If applicable, look at current rental income and future projections to gauge how profitable the building could be. 

• Tenancy agreements: Again, if applicable, review lease terms and assess how reliable existing tenants are to assess how stable your potential income stream is. 

  
  

It might also be worth commissioning a commercial property survey to reveal any hidden structural issues or risks before making a final decision.  

Step 6: Make an offer 

Once you’ve found the right commercial property, the next step is to submit an offer through the seller’s agent. Commercial property transactions can sometimes be more flexible than residential deals, so be prepared to negotiate on price, terms and conditions. Sellers rarely expect the asking price to be final, and they may anticipate offers below their initial price. If you decide to negotiate, it can be sensible to keep your budget and return-on-investment goals in mind. 

Beyond the price, consider the terms and conditions of the deal – for example, lease agreements, break clauses, repair responsibilities and existing tenant arrangements. These factors can make a significant dent in the property’s profitability, so make sure you address them before moving forward. 

Many experts advise that buyers include conditions in their offers that protect their interests, like satisfactory property surveys, planning permissions or financing approvals. This approach could help you avoid unexpected surprises down the line. 

Working with an experienced local property agent can give you valuable market insight and strengthen your negotiating position. Once you reach an agreement, you (and your legal team) can move on to due diligence and finalise financing before exchanging contracts. Being well-prepared at the offer stage helps streamline the entire purchase process. 

Step 7: Exchange contracts 

Once all due diligence checks are complete and financing is in place, the next crucial step is exchanging contracts with the seller. This is a key milestone in the commercial property purchase process, as it makes the transaction legally binding. 

At this stage, both parties sign identical copies of the contract, which are then exchanged between solicitors. You will also need to pay a deposit, typically around 10% of the purchase price, although this can vary depending on negotiations and the terms agreed upon. From this point forward, neither party can back out without facing legal and financial consequences. 

Before signing, make sure all agreed-upon terms, conditions and guarantees are clearly outlined in the contract. This includes details about the purchase price, completion date, tenant agreements (if applicable), and any repairs or conditions the seller must meet before completion. Your solicitor will carefully review these terms and flag any last-minute concerns. 

With contracts exchanged, you're one step closer to officially owning your commercial property. Now you can start preparing for the final stage: completion. This might involve finalising insurance coverage, coordinating with lenders to line up the remaining funds and setting up utilities or management services if you plan to lease out the property. 

Step 8: Completion 

Completion is the final step in the commercial property purchase process, where ownership of the property is officially transferred to you. On the agreed completion date, the remaining balance of the purchase price is paid to the seller, and all necessary legal formalities are concluded. 

Your solicitor will oversee the transfer of funds, ensuring that the payment reaches the seller’s solicitor in accordance with the terms of the contract. Once the funds are received, the seller’s solicitor confirms completion, and you legally take ownership of the property. At this point, you can take possession of the premises and begin any planned renovations, lease agreements, or business operations. 

If you live outside the UK, the completion process can still run smoothly with proper preparation. For example, if you're based in Dubai and purchasing an office building in London, your solicitor will coordinate with you in advance to ensure all necessary paperwork is signed and ready. On the completion day, your solicitor will confirm the transfer of funds with your bank and may also require your approval for final payments. Since you may be in a different time zone, arranging an early morning transfer or providing pre-signed documents can help prevent delays. 

Once completion is confirmed, your solicitor will handle the legal registration of your ownership with the UK Land Registry. This step is crucial, as it ensures your name is officially recorded as the new owner.  

Finally, there will almost certainly be tax to pay. The type of property tax you need to pay depends on the location of your property. In England and Northern Ireland, you’ll pay Stamp Duty Land Tax (SDLT), while in Scotland, it’s Land and Buildings Transaction Tax (LBTT), and in Wales, it’s Land Transaction Tax (LTT). Your solicitor will guide you through the process and ensure the correct tax is settled as part of your purchase. 

With completion finalised, you can now focus on managing or developing your newly acquired commercial property. Whether you plan to lease it to tenants, renovate for a higher return, or use it for your own business operations, this is a big milestone in your investment journey. 

Choosing the right payment partner 

Overseas investors often use their existing banks to send funds to the UK for commercial property purchases. That’s not surprising: banks are familiar territory, and many people don’t know that dedicated FX companies can help keep costs down. 

A third financial option is alternative banking. Unlike many big banks, alternative providers – including EMIs, payment providers and other fintechs – are flexible and responsive to the needs of overseas clients. Accounts take days, rather than weeks, to open, and funds are kept in special safeguarding accounts to separate them from other assets. 

In the UK, alternative banking providers are regulated by the Financial Conduct Authority (FCA). Unlike FX companies, they’re allowed to hold money, making them a great choice for overseas landlords and commercial property investors in search of local accounts to receive rental payments. 

Premium alternative banking providers like Interpolitan offer an additional perk: personal service. Commercial investors used to dealing with private banks often find this reassuring – particularly during complex, high-value deals. Instead of battling a chatbot, clients can access one-on-one advice from relationship managers via phone or email. 

At Interpolitan, we offer tailored solutions designed to meet the needs of corporate clients. Our escrow services reduce risk, providing a secure way to manage large commercial property transactions by holding funds safely until all contractual conditions are met. As an FCA-regulated EMI, we maintain the highest compliance standards across different jurisdictions, ensuring every transaction is secure, transparent and aligned with international regulations. 

Learn how Interpolitan helped facilitate a £100 million property sale in London. 

Breaking new ground with property investment   

With a good understanding of the market and guidance from an experienced team, commercial property investment in the UK can provide significant long-term returns and a strong foothold in a thriving market.

We’d love to help you make the most of your investment. To learn more about our tailored escrow solutions and multi-currency accounts, get in touch today.