If you’ve built a portfolio of residential buy-to-lets or you’re sitting on retained profits in a company, you might be wondering whether commercial property is the next smart step.
At GoldHouse, we support investors across the UK and Dubai who are ready to scale strategically, reduce tax liability and build wealth that lasts. Commercial property can absolutely be part of that journey but it’s not for everyone.
Here’s what you need to know before making your next move.
Commercial vs Residential: What’s the Difference?
Residential property tends to feel more familiar – lower entry points, strong tenant demand and simple lending. But it also comes with growing regulation, Section 24 tax changes and short-term tenancies.
Commercial property, on the other hand, offers:
- Longer leases (5–25 years) with built-in rent reviews
- Full repairing and insuring (FRI) leases, meaning tenants often cover maintenance
- Potential capital allowances (tax-deductible fixtures and fittings)
- Often higher yields, especially in industrial or office spaces
However, commercial units can sit empty longer between tenancies and financing tends to require higher deposits and stricter lending terms.
Understanding Commercial Mortgages
Unlike residential buy-to-let mortgages, commercial property loans are assessed more on the property’s income potential and your business plan than personal affordability.
Key differences:
- Deposit requirements are higher, usually 25–40%
- Lenders review lease terms and tenant quality
- Interest rates can be higher, but often offset by stronger yields
- Terms are negotiable, especially for experienced or corporate borrowers
At GoldHouse, we help clients structure these deals through their limited companies, pension schemes (like SSAS) or holding structures for long-term tax efficiency.
Don’t Miss Out on Capital Allowances
One of the most overlooked benefits of commercial property is capital allowances, a powerful way to reduce your corporation tax bill.
These allow you to claim tax relief on certain parts of the building, such as:
- Electrical systems
- Plumbing
- Air conditioning
- Fire and security systems
When planned properly, capital allowances can create tens or hundreds of thousands in tax savings over time. We work with specialists to ensure your acquisition is structured to unlock the full benefit.
Lease Structures and Long-Term Income
Unlike residential tenancies, commercial leases tend to be longer and more stable, providing predictable cashflow.
Some leases include:
- Upward-only rent reviews
- Break clauses that favour the landlord
- Tenant responsibilities for repairs and insurance (FRI)
This structure makes commercial property attractive for hands-off investors or those planning for long-term legacy wealth. However, due diligence on the tenant and lease terms is essential, a vacant commercial unit doesn’t re-let as easily as a flat.
Who Is Commercial Property Right For?
Commercial property isn’t just for seasoned investors. It’s a strong choice if you:
- Are incorporated and profitable, looking to reinvest surplus cash
- Want to diversify outside of residential
- Need a business premises and prefer to own rather than rent
- Are looking for tax-deductible investment via a SSAS pension
We help clients in the UK and Dubai plan their structure, source the right property and understand the tax, finance and compliance steps before investing.
Ready to Transition from Resi to Commercial?
Many of our clients start with residential portfolios and shift into commercial when:
- Section 24 eats into profits
- They want longer-term tenants and less maintenance hassle
- They seek higher yields or capital allowances
- They plan to use SSAS pension funds or holding companies for smarter growth
At GoldHouse, we map out the right route based on your income goals, tax profile and long-term vision and we’re with you through every step of the transition.
Want to know if commercial property fits your strategy?
GoldHouse helps investors unlock growth through smart structures, reduced tax and hands-on support. Whether you’re in the UK or based in Dubai, our advisors will help you invest with clarity and confidence.
