Property Investor Tool — Commercial Deal Book

The deal

Where's the property?

Sets the right non-residential purchase tax (LBTT, SDLT or LTT) automatically. No additional-property surcharge applies to commercial. Rates as at September 2026.

Property & tenant

Paste listing details copy the text from the agent's page and paste here

Property name or address

Listing link

Tenant name or "vacant" if unlet

Notes

Purchase

Purchase price

Deposit % — commercial usually needs 30-40%

Legal, survey & mortgage fees

VAT

Not every commercial property is VAT-opted. If it is and you can't reclaim the VAT (not VAT-registered, or no TOGC relief), it becomes a real extra 20% cost on the price. A tenanted sale can sometimes qualify for VAT-free Transfer of a Going Concern treatment — check with your accountant.

Lease terms

Passing rent £ per year, once rent-free ends

Rent due day day of the month it's paid, e.g. 27

Lease length remaining years — this is your WAULT

Rent-free period months, at the start of the lease

Rent review every X years

Review uplift % expected at each review

Repairs & insurance basis

FRI (Full Repairing & Insuring) means the tenant covers insurance, service charge and repairs — most commercial leases are FRI.

Running costs & void risk

Void allowance % of rent, for gaps between tenants

Management fee % of rent — 0 if self-managing

Mortgage

Interest rate % per year

Tax treatment

Your income tax rate % on rental profit

Commercial mortgage interest is fully deductible against rental profit for individuals too — the Section 24 restriction only applies to residential lettings.

The numbers

Stabilised cashflow after tax

—

Return on cash invested

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Cash needed up front	Amount
Deposit	—
LBTT	—
VAT on purchase (can't reclaim)	—
Legal, survey & fees	—
Total cash in	—

Annual trading (stabilised, from year 2)	Amount
Passing rent	—
Voids	—
Management fee	—
Insurance & service charge	—
Net operating income	—
Mortgage payments	—
Profit before tax	—
Tax	—
Profit after tax	—

Yield, lease & cover	Result
Gross initial yield	—
Net initial yield	—
WAULT	—
Interest cover lenders want ~145%	—

If rates rise

Stress test. Stabilised monthly cashflow after tax at higher interest rates, everything else unchanged.

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Commercial deal book

The deal

The numbers

If rates rise