How to use the Commercial Property Investment Calculator UK: full video tutorial
Non-residential stamp duty, business rates, net initial yield and returns on shops, offices and units. Educational.
▶ Play the tutorial (10:39)About this tutorial
Enter an office, warehouse, shop, hotel or mixed-use property once to see stamp duty, business rates, capital allowances, yields, the tenant covenant, lease events, a commercial-to-residential check and an exit or refinance view. This full guide walks you through every box and result in the Property Clues Commercial Property Investment Calculator, using a worked example: a £450,000 warehouse in Leeds let at £36,000 a year.
What you'll learn
- Net initial yield, gross yield and net income after the owner’s costs
- Commercial stamp duty, buying costs, the cash needed and what a lower price changes
- Business rates, who pays, empty periods and the effect of an inclusive lease
- Capital allowances, MEES, tenant covenant strength and lease events
- Class MA conversion, sale value, refinance, interest cover and a higher exit yield
Chapters
- 7.66% net initial yield on a £450,000 warehouse (example)
- Finding your way around
- The quick check
- Buying costs, type and owner
- The headline results
- Reading the yields
- What the purchase costs
- How commercial stamp duty works
- What if the price drops?
- Business rates and empty periods
- What if the owner pays the rates?
- Tax, energy rating and the tenant
- Capital allowances in more detail
- The energy rating rules
- The covenant score in detail
- What if the tenant is a start-up?
- Lease events and the exit
- The lease dates
- The exit in more detail
- What if yields move out?
- Yields by region and recap
Figures in the video are a worked example. Property Clues tools are educational calculators and checklists, not financial, tax, mortgage or legal advice. Speak to a qualified adviser about your own situation. The voice in the video is AI-generated.